icetana Limited reports a strong first half of 2026 with recurring revenue up 43%, driven by key partnerships and expanded market reach across APAC and the Middle East.
- Recurring revenue rises 43% to $1.3 million
- Gross profit increases 56% with margins improving to 88%
- Strategic partnerships with SoftBank Robotics and Macnica fuel growth
- Operating cash outflow grows due to expanded sales and marketing
- Delayed $1.7 million Middle East project remains uncertain
Strong Revenue Growth Backed by Strategic Partnerships
icetana Limited (ASX: ICE), a developer of self-learning security AI software, has delivered a robust first half for the 2026 financial year, reporting a 43% increase in recurring revenue to $1.3 million. This growth was underpinned by the company’s strategic alliances, particularly with SoftBank Robotics Group Corp and Macnica Inc, which have expanded icetana’s footprint across Japan, the broader Asia-Pacific region, and the Middle East.
Gross profit rose 56% to $1.15 million, with margins improving to 88%, reflecting both higher sales and operational efficiencies. Cash receipts from customers surged 69% to $1.1 million, signalling strong market demand and effective monetisation of the company’s AI-driven security solutions.
Operational Momentum and Market Expansion
The company’s CEO, Kevin Brown, highlighted the tangible commercial momentum stemming from these partnerships. The collaboration with SoftBank Robotics has been particularly fruitful, culminating in a three-year R&D agreement and SoftBank’s inaugural sale in Japan. This relationship also facilitated icetana’s largest Australian contract to date; a $376,000 five-year deal with Millennium Services Group, a SoftBank-controlled entity.
Additional contracts in Australia and Singapore, alongside deployments in Japan and the United States, demonstrate icetana’s growing international presence. The company’s sales and marketing efforts have intensified, with increased participation in key industry events across multiple continents and the addition of business development managers in APAC to accelerate pipeline growth.
Product Enhancements and Technological Advances
icetana AI has also made significant strides in product development, focusing on improving algorithm quality, explainability, and integration capabilities. Notably, the company enhanced its robotic integration with SoftBank Robotics’ autonomous systems, enabling real-time interpretation and response to AI-generated event data. Other improvements include stronger event context visualisations, offline monitoring support, and expanded workflow automation through popular messaging platforms.
These advancements aim to boost operator confidence and scalability, positioning icetana AI as a practical solution for complex, multi-site surveillance environments such as retail, hospitality, and public safety.
Challenges and Outlook
Despite the positive trajectory, the company faces uncertainty with the delayed $1.7 million Middle East safe city project, which currently lacks a confirmed deployment timeline. Meanwhile, operating cash outflow increased to $1.6 million, reflecting higher investment in sales and marketing to sustain growth momentum.
Looking ahead, CEO Kevin Brown expressed confidence in icetana AI’s ability to capitalise on the growing demand for intelligent automation in security. The company plans to deepen strategic partnerships, continue product innovation, and expand its market reach in the second half of the year.
Bottom Line?
icetana AI’s growth story is gaining pace, but the timing of key projects and investment returns will be critical to watch.
Questions in the middle?
- When will the delayed Middle East safe city project proceed, and what impact will it have on revenue?
- How effectively will increased sales and marketing spend translate into sustained contract wins?
- Can icetana AI maintain or improve its gross profit margins amid scaling operations?