Ava Risk Group Posts $6.1M Q3 Sales Intake and Maintains $34 - 37M Revenue Guidance

Strategic Investment Boosts US Expansion

Ava Risk Group (ASX:AVA) has locked in a $7 million strategic investment from Hale Capital, delivered via Convertible Loan Notes, with an additional $5.6 million in warrants. This funding, received in two tranches during Q3 FY2026, is earmarked to support the company’s push into the US security market. The deal brings a highly aligned partner onboard just as Ava ramps up its US government sales pipeline and product development, following a series of recent validation projects and market engagements.

The investment builds on earlier announcements and is expected to underpin Ava’s growth ambitions beyond FY2026, particularly in the competitive US federal sector. The partnership also coincides with Ava’s ongoing CEO search, which the company expects to conclude in H2 FY2026, potentially adding further leadership momentum.

Sales Intake and Backlog Reflect Mixed Regional Dynamics

Q3 sales order intake hit $6.1 million, bringing the year-to-date total to $21.7 million. The company’s sales order backlog stands at $6.2 million, including $2.6 million in contracted annual recurring revenue from multi-year service contracts and equipment orders. While these figures indicate steady demand, Ava flagged uncertainty around the timing of orders from the Middle East, where ongoing regional conflict is disrupting contract fulfilment schedules.

Specifically, Ava recorded $1 million in energy infrastructure protection orders during Q3, with an additional $2.5 million sovereign border protection order expected to proceed within FY2026, albeit with timing risks. Another $2.5 million energy sector order is now likely deferred to FY2027. This dynamic tempers the company’s full year revenue guidance, which remains at $34 to $37 million but is subject to the evolving geopolitical situation.

Government and Commercial Contracts Drive Technology Validation

Ava continues to make headway in key security segments domestically and internationally. The company is leading Australia’s largest enhanced Perimeter Intrusion Detection System (PIDS) validation trial at Melbourne Airport, expanding on successful trials at Canberra and Cairns airports. Trials at Perth Airport are also underway, with results expected in Q4 FY2026. Success here could open doors to broader adoption of Ava’s fibre optic sensing technology across Australian airports in FY2027.

Additionally, Ava’s inclusion on the Australian Department of Home Affairs Border Protection Technologies Panel positions the company to access a steady pipeline of government contracts for border security. This panel membership accelerates procurement processes and raises Ava’s profile among Commonwealth stakeholders, potentially smoothing future contract wins.

Expanding Footprint with Telstra and US Market Engagements

On the telecommunications front, Ava has expanded its strategic relationship with Telstra, showcasing its Aura Ai-X technology during the Together26 multi-city roadshow targeting enterprise and government clients. The technology will also be deployed on a new network segment in regional New South Wales, enhancing physical network threat detection. These moves underscore Ava’s growing footprint in critical infrastructure security.

Meanwhile, the US government market remains a focal point, with multiple orders totaling $0.5 million received in Q3, including delayed orders from earlier in the fiscal year. Ava expects further contract closures in corrections and government sites during H2 FY2026. The company is also leveraging the dormakaba distribution network to grow its Access segment, highlighted by participation in dormakaba’s PRO-Alliance meetings and product demonstrations integrating Apple Wallet for broader adoption.

These developments tie into Ava’s broader strategy to capitalize on the US federal security market, supported by the recent $7M strategic investment and a strong pipeline of government contracts documented in earlier quarters major security contracts across Australia.