Unith’s Losses Narrow Amid Early-Stage AI Tech Commercialisation Risks
Unith Ltd reported a significant reduction in losses alongside an 8% revenue increase in H1 FY26, driven by advances in its AI-powered digital human technology and expanding subscription services.
- Half-year loss narrowed to $1.86 million from $3.55 million
- Revenue grew 8% to $2.49 million, led by subscription and digital human divisions
- Alpha launch of Streaming Avatars delivers 90% faster AI response times
- New contracts secured in entertainment, healthcare, and pharmaceutical sectors
- Raised $1.85 million via share placement and secured $1 million strategic facility
Financial Performance and Operational Progress
Unith Ltd has reported a marked improvement in its financial results for the half-year ended 31 December 2025, cutting its net loss after tax to $1.86 million, down from $3.55 million in the prior corresponding period. This progress accompanies an 8% rise in revenue to $2.49 million, reflecting growth in both its subscription services and its AI-driven digital human technology divisions.
The company’s EBITDA loss narrowed significantly, underscoring operational efficiencies and a more focused commercial strategy. Despite ongoing losses, Unith’s financial position remains stable, supported by a recent $1.85 million capital raise through a share placement and a $1 million unsecured strategic facility to bolster liquidity and fund growth initiatives.
Advances in AI-Powered Digital Human Technology
Unith’s core innovation lies in its AI-powered digital humans; interactive, multilingual avatars designed to enhance customer engagement across sectors such as education, healthcare, and entertainment. The company successfully launched an alpha version of its Streaming Avatars technology, which has demonstrated a roughly 90% improvement in response speed, delivering lifelike, real-time conversations with over 90% accuracy.
Complementing this, Unith developed its Avatar Studio, enabling the creation of human-like avatars without the need for real human subjects. This innovation simplifies and accelerates avatar production, potentially opening new commercial avenues as a standalone product offering.
Expanding Market Footprint and Strategic Partnerships
Unith has broadened its client base with new contracts including a binding agreement with Finland’s Persona Entertainment OY, valued at approximately A$127,650, and an extended licensing deal with the Alliance for Public Health supporting digital platforms across Eastern Europe and Central Asia. The company is also deepening its presence in the pharmaceutical sector with new pilot programs and strategic clients, signaling growing industry confidence in its technology.
On the consumer front, Unith’s B2C subscription division is enhancing its payment infrastructure by adding credit/debit card and digital wallet options, initially targeting Canada before expanding to the US and Australia. This move aims to increase average revenue per user and access higher-value customer segments beyond the limitations of telecom billing.
Corporate Developments and Future Outlook
Unith continues to pursue ISO 27001 certification, a key milestone for enterprise readiness and data security, with positive audit progress reported. Marketing efforts, including participation in the Tech Show Madrid and targeted LinkedIn advertising campaigns, are generating qualified leads and validating demand in priority segments such as HR training and candidate pre-screening.
While the company remains in the early stages of commercialisation and reliant on external funding, the directors express confidence in their funding strategies and the company’s ability to continue as a going concern. The next phases will be critical as Unith seeks to convert pilot programs into scalable revenue streams and expand its global footprint.
Bottom Line?
Unith’s technological strides and strategic partnerships position it well for growth, but investors should watch closely as the company navigates the challenging path from innovation to sustained profitability.
Questions in the middle?
- How quickly can Unith scale its Streaming Avatars technology beyond alpha testing to broader commercial adoption?
- What impact will expanded payment options have on subscriber growth and revenue in the B2C division?
- Can Unith secure further strategic partnerships to accelerate revenue growth and reduce reliance on external funding?
