Beonic Boosts EBITDA Margin and Secures $7.3M Moroccan Airport Contract

Financial Turnaround and Margin Expansion

Beonic Limited (ASX:BEO) delivered a marked financial improvement in FY26, with revenue climbing 5.2% to $23.25 million while halving its loss after tax to $1.57 million. The company’s EBITDA surged 53% to $4.0 million, lifting the margin to a robust 17.2%, a significant leap from 11.9% in FY25. This margin expansion underscores the operating leverage of Beonic’s unified data analytics platform and disciplined cost management.

Notably, Beonic returned to positive operating cash flow, generating $0.56 million after a $0.82 million outflow the previous year. Gross margins improved by 110 basis points to 78.4%, reflecting scalable recurring revenue against a largely fixed cost base.

Strategic Win in Moroccan Airports and International Expansion

A standout highlight was the $7.3 million contract secured with the Moroccan airport authority, marking Beonic’s strategic entry into the North African aviation market. The 30-month deal, executed jointly with a leading technology partner, involves deploying Beonic’s passenger flow management solutions across seven airports. Deployment was completed at five airports by June 2026, with the final two underway and expected to contribute fully to revenue in H1 FY27.

This contract complements Beonic’s existing international airport portfolio, which includes multi-year agreements at Denver International and renewals at major US airports such as Charlotte Douglas and Seattle–Tacoma. The company also reported wins and expansions across APAC and EMEA regions, including clients like GPT, Rivian, and Etisalat.

Product Innovation and Operational Efficiency

Beonic launched Beonic Vision during FY26, a privacy-safe flow analytics product that leverages existing camera networks to deliver advanced visitor journey insights without compromising privacy. This innovation builds on 15 years of computer vision expertise and complements existing solutions like Beonic Display, positioning the company to capture larger venues such as airports and malls.

Operationally, the company undertook a comprehensive organisational review, implementing cost-saving measures that enhanced gross margins and sustained profitability. Beonic’s platform processed billions of data points daily across over 10,500 venues in 58 countries, integrating more than 100,000 devices, serving retail chains, malls, and airport retail; the highest-yielding segment.

Capital Management and Debt Reduction

FY26 saw Beonic complete a $4.27 million convertible note placement alongside a $3.01 million renounceable entitlement issue, both anchored by major shareholder Thorney Investment Group and key insiders. The capital raised enabled the full repayment of a legacy USD $3.1 million debt facility in January 2026, significantly lowering interest expenses and strengthening the balance sheet.

The company also managed short-term loan facilities from directors and executives to maintain working capital flexibility, extending maturity dates into FY27. At 30 June 2026, net assets stood at $2.06 million, an improvement from $1.14 million the previous year, while net tangible asset backing per share remained negative at 6.25 cents.

Executive Remuneration and Retention Initiatives

Despite improved financials, Beonic’s Board confirmed no short-term incentives (STIs) were awarded for FY26 as key targets on ending ARR and cash from operations were not met. However, a retention award was approved post-year-end to recognise operational delivery and support executive continuity. The CEO, Billy Tucker, is set to receive a $182,000 award weighted heavily in equity subject to shareholder approval and an 18-month service condition.

Long-term incentives remain contingent on multi-year cash flow breakeven and ARR growth targets, aligning executive rewards with sustained shareholder value creation.

Outlook and Pipeline

Beonic enters FY27 with a qualified sales pipeline valued at $37.1 million, including $0.3 million in late-stage contract negotiation and $2.9 million under client evaluation. The company aims to convert this pipeline while completing the Moroccan airports rollout and scaling Beonic Vision adoption.

Management emphasises continued focus on profitable EBITDA and positive operating cash flow, supported by ongoing cost discipline and operational excellence. The company remains exposed to foreign exchange volatility and geopolitical risks, particularly in aviation sectors, but maintains a diversified global footprint across APAC, Americas, and EMEA.

Beonic’s audited financial statements were issued with an unmodified opinion but included an emphasis of matter regarding going concern, reflecting the inherent uncertainties of a technology growth company investing in product development and market expansion.