SenSen’s Narrowed Losses and Cash Outflows Highlight Operational Challenges Ahead

Strong Revenue Growth and Profitability Gains

SenSen Networks Limited (ASX:SNS), a leader in AI-powered smart urban management solutions, has delivered a robust half-year performance for the six months ended 31 December 2025. The company reported revenue of $6.59 million, marking a 20.2% increase compared to the prior corresponding period. This growth was underpinned by onboarding new customers and a remarkable 115% rise in usage revenues, reflecting strong market adoption of SenSen’s AI-driven enforcement and monitoring technologies.

Gross margins improved significantly to 85%, up from 77% a year earlier, highlighting operational efficiencies and a favourable product mix. Importantly, SenSen swung to a positive EBITDA of $540,017 excluding share-based payments, compared to a loss in the previous period, signalling improved underlying profitability and validating the company’s strategic direction.

Narrowed Net Loss and Cash Flow Dynamics

The net loss after tax narrowed dramatically to $171,805 from $1.59 million in the prior period, a testament to disciplined cost management and revenue momentum. However, the company recorded a net operating cash outflow of $1.5 million, primarily due to increased equipment purchases to support new customers, seasonal timing of cash receipts, an additional payroll cycle, and a delay in the receipt of a $2.05 million R&D tax offset refund, which was subsequently received post-period.

SenSen maintains a solid liquidity position with undrawn debt facilities of $1.55 million and has demonstrated the ability to manage cash flow prudently while investing in growth initiatives.

Geographic Expansion and Customer Wins

North America remains a key growth engine for SenSen, with five new city contracts secured through its channel partner Gtechna. These include engagements with the Pittsburgh Parking Authority, Toronto Exhibition Place, and the cities of Birmingham, Kitchener, and Mississauga. This expansion brings SenSen’s North American smart city customer base to 27, underscoring the rising demand for AI-powered enforcement solutions in the region.

In Australia, SenSen strengthened its position in the fuel retail sector with orders for 33 additional sites, notably over 25 new sites from Ampol Australia. This reinforces SenSen’s reputation as a trusted provider of AI-driven theft prevention and debt recovery solutions for major fuel retailers such as Ampol, Chevron, and Liberty.

Outlook and Strategic Positioning

The company’s directors remain confident in SenSen’s growth trajectory, supported by a scalable platform and expanding global footprint. The positive EBITDA and improved margins suggest the company is moving closer to sustainable profitability. The ongoing investments in technology and customer acquisition, balanced with prudent cash management, position SenSen well to capitalise on the increasing adoption of smart city and AI enforcement technologies worldwide.

While the company faces typical challenges such as timing of cash flows and reliance on debt facilities, its recent performance and strategic wins provide a solid foundation for the next phase of growth.