AI products gain ground as weaker earnings weigh on tech shares

The biggest moves came from FortifAI, COSOL and WiseTech. FortifAI (ASX:FTI) fell 33.58% for the week, despite saying its NOL8 system delivered up to 118 times more data per infrastructure dollar than Google RE2. COSOL (ASX:COS) dropped 19.05% after weaker revenue and a statutory loss. By contrast, WiseTech Global (ASX:WTC) rose 11.83% as investors responded to higher earnings and progress on ASIC investigations.

AI claims meet the share price

FortifAI’s test result gives customers a clear cost comparison. NOL8 produced between 4.1 and 118 times more data per dollar across six tests. Latency stayed at three to five milliseconds for most workloads. Yet the share price fell after the stock reopened at $0.66 and continued lower. The result shows that a technical win does not guarantee buyers will pay for the product.

Activeport also reported progress in AI and computing services. Activeport (ASX:ATV) said software revenue rose 149% from the previous quarter to $599,000. It activated $4.05 million of project contract value and increased GPU deployments by 36% to 1,400. The share price was flat for the week, while the stock remained below its reopening level. Investors still need to see customer use turn into cash, with the company targeting positive cash flow in the fourth quarter of FY27.

WiseTech gains, but several risks remain

WiseTech’s annual report showed the benefit of the e2open acquisition. Revenue rose 79% to US$1.3959 billion, while underlying EBITDA increased 56% to US$644.5 million. The company also removed about 1,700 roles during its AI change programme. Those savings may support earnings, but the business carries more debt, with net leverage at 2.7 times. Management plans to reduce that level in FY27.

ASIC has closed investigations into WiseTech, Richard White and two current employees without enforcement action. A separate ASIC inquiry remains open. The ACCC investigation and shareholder class action also remain unresolved. Those matters could still affect the company, even after the positive share price response.

Contracts offer proof, but not yet cash

Vection secured a minimum revenue commitment of about A$19.5 million from Italian telecommunications provider Retelit Digital Service through June 2030. Vection Technologies (ASX:VR1) rose 3.12%. The agreement covers AI, 3D software and hardware, but Vection has not disclosed margins, discounts or payment terms. The share price also slipped after reopening, which suggests investors want evidence that the contract will produce profitable sales.

Stakk reported pro-forma first-quarter revenue of A$16.1 million, up 16.5% from the previous quarter. That creates an illustrative annual pace of A$64.3 million, above its unchanged FY27 target of A$55.2 million. Stakk (ASX:SKK) finished flat for the week. The company says recurring contracts support the target, but statutory cash flow and receipts are still due in its next Appendix 4C.

Cost cuts and cash flow divide the group

COSOL’s weaker result came from falling sales and an $11.0 million goodwill write-down. Revenue fell to $98.6 million from $116.8 million, while underlying EBITDA dropped to $9.8 million. Net debt was reduced to $20.0 million, with another $11.0 million of borrowing capacity available. New transport contracts and AI services must now lift sales. Anthony Stokes is serving as interim chief executive while the company searches for a permanent replacement.

Integrated Research faced a similar sales problem. Integrated Research (ASX:IRI) fell 5.36% after revenue dropped 16% to A$57.6 million and net profit fell 91% to A$1.2 million. A A$5.0 million credit-loss provision hurt the result. Cash provides some protection, with A$51.7 million on hand and operating cash flow of A$12.6 million. The next test is whether its new AI and cloud products attract paying customers.

Excite delivered a better cash result but still saw its share price fall 9.09%. Excite Technology Services (ASX:EXT) generated a record A$1.33 million in quarterly operating cash flow. Customer receipts reached A$7.20 million, helped by a A$3.20 million Federal Government digital forensics contract. Cash rose to A$3.98 million after a July capital raising. The market may want more evidence that this improvement can continue after one strong quarter.

Adveritas (ASX:AV1) raised $2.0 million at $0.08 a share, a 42.9% premium to its previous close. The funds will support product development, marketing and working capital as the company expands in the United States. Payments from some Brazilian customers have been delayed by advertising restrictions. Adveritas was flat for the week, and the stock fell after reopening. That leaves investors watching whether the new money produces faster sales.