RemSense Technologies reported a half-year loss reversing prior profits but showcased robust Q2 Tier-1 project deliveries and expanding recurring revenues, signalling operational progress despite financial headwinds.
- H1 FY26 revenue declined 49% to $1.587 million due to milestone-based delivery timing
- EBITDA turned positive at $109K, with cash EBITDA reaching $237.7K
- Strong Q2 invoicing of $1.685 million from Tier-1 energy and resources projects
- Recurring subscription revenue expanded with renewals from Woodside and Newmont
- Progress on platform scalability, LiDAR capacity, and ISO 27001 cybersecurity certification
Financial Results Reflect Delivery Timing
RemSense Technologies Limited reported a net loss of $140,636 for the half-year ended 31 December 2025, reversing a profit of nearly $797,000 in the prior corresponding period. This decline primarily stems from the milestone-based nature of revenue recognition, with a significant portion of contract invoicing concentrated in the second quarter. Total revenue for H1 FY26 was $1.587 million, down 49% from $3.115 million in H1 FY25, reflecting the timing of large Tier-1 project deliveries rather than a drop in underlying demand.
Operational Momentum in Tier-1 Projects
The company’s virtualplant digital twin platform gained substantial traction during the period, particularly with Tier-1 energy and resources clients. Q2 FY26 saw $1.685 million in project deliveries invoiced, underscoring accelerating commercial execution. Notably, engagements with global energy giants such as Shell Energy and ExxonMobil progressed towards key commissioning milestones, integrating complex multi-terabyte datasets for offshore facility workflows. These deployments highlight RemSense’s growing reputation as a trusted partner capable of delivering high-resolution, enterprise-scale digital environments.
Expanding Recurring Revenue and Pipeline
Beyond project milestones, RemSense expanded its recurring revenue base with subscription renewals from major customers including Woodside Energy and Newmont. These renewals, alongside new offshore and onshore deployments, signal increasing platform adoption and a strategic shift towards longer-term contracted revenues. The company’s commercial pipeline also broadened into facilities management and defence sectors, diversifying market exposure and enhancing medium-term growth prospects.
Investing in Platform and Security
RemSense continued investing in its technology stack, enhancing virtualplant’s capacity to handle larger, high-resolution datasets and integrating diverse data sources such as CAD models and LiDAR scans. The acquisition of additional LiDAR systems reduced reliance on third parties, while progress towards ISO 27001 cybersecurity certification bolstered enterprise and government client readiness. These advancements position the company well to support complex digital twin projects and meet stringent security requirements.
Financial Position and Outlook
Despite cash outflows of approximately $847,000 from operating and investing activities, RemSense ended the half with $248,925 in cash and $1.45 million in trade receivables expected early in 2026, supporting near-term liquidity. The Board expressed confidence in the company’s going concern status, citing a strong commercial pipeline, access to capital markets, and disciplined cash management. Looking ahead, RemSense aims to convert operational momentum into improved financial performance in H2 FY26 by deepening Tier-1 relationships, expanding recurring revenues, and scaling platform capabilities.
Bottom Line?
RemSense’s operational strides in Tier-1 projects and recurring revenue growth set the stage for a pivotal second half, though cash flow and profitability remain watchpoints.
Questions in the middle?
- Will RemSense’s expanding pipeline convert into sustained revenue growth beyond milestone deliveries?
- How will the company manage cash flow pressures amid ongoing investments and modest cash reserves?
- What impact will ISO 27001 certification have on securing new enterprise and government contracts?