Key Highlights

  • Ai-Media Technologies Ltd (ASX:AIM) provided FY27 guidance including Annual Recurring Revenue (ARR) of $44–46 million, total revenue of $61–63 million and Adjusted EBITDA of $3.5–4.5 million.
  • FY26 ARR increased 50% to $36 million, while SaaS revenue increased 42% to $34.1 million during the period.
  • The company operates a global platform spanning 46 countries with more than 8,000 installed encoders supporting its LEXI language technology solutions.
  • Ai-Media announced plans to focus on LEXI Text expansion, installed encoder conversion, new product commercialisation and software-based customer access during FY27.

Ai-Media Technologies Ltd (ASX:AIM) provides AI-powered language solutions and broadcast infrastructure through its LEXI platform. The company develops technologies for captioning, translation, multilingual voice, audio description, recorded media processing and content insights. At the time of writing, Ai-Media Technologies Ltd (ASX:AIM) shares were trading at A$0.24 on 30 September 2026. Ai-Media operates across global broadcast, enterprise and government markets through physical and software encoders, LEXI Direct and partner integrations.

FY27 Guidance and Recurring Revenue Focus

Ai-Media Technologies presented its FY27 outlook and commercial priorities at its 2026 Annual General Meeting. The company provided guidance for year-end ARR of $44–46 million, total revenue of $61–63 million and Adjusted EBITDA of $3.5–4.5 million.

The ARR guidance represents approximately 22–28% growth from the $36 million ARR recorded at 30 June 2026. The company expects ARR gross margins to remain around 85%.

Ai-Media stated that FY27 priorities are focused on converting recurring revenue growth into improved Earnings and cash generation. Progress will be measured through ARR growth, customer retention, encoder orders and deployments, adoption of additional LEXI products, earnings performance and cash generation.

FY26 Business Performance

During FY26, Ai-Media continued its transition towards a technology-led business model centred around recurring software revenue. The company reported ARR of $36 million at year-end, representing 50% growth, while SaaS revenue increased 42% to $34.1 million. Technology represented 74% of Group revenue during the period.

At 30 June 2026, Ai-Media held $15.9 million in cash and had no external debt. The company invested $7.7 million in product and Research and Development expenditure during FY26, which was fully expensed.

The company’s FY26 results also reflected changes in revenue mix. Revenue declined as Ai-Media reduced lower-margin legacy Services activity and experienced lower hardware revenue ahead of a new encoder cycle. Adjusted EBITDA improved during the year, moving from a loss of $0.4 million in the first half to a profit of $2.5 million in the second half.

LEXI Platform and Product Development

Ai-Media’s LEXI platform connects AI-powered language services with customer systems used for producing and distributing live and recorded video content. Customers access LEXI through physical and software encoders, LEXI Direct and partner integrations.

The company’s LEXI suite includes products such as LEXI Text, LEXI Translate, LEXI Voice, LEXI Audio Description, LEXI Recorded and LEXI Insights. These solutions support applications including real-time captioning, translation, multilingual voice and content processing.

During FY27, Ai-Media plans to focus on scaling LEXI Text, converting its installed encoder base, commercialising LEXI Voice and other emerging products, and expanding access through software integrations and partners.

Installed Infrastructure and Customer Expansion

Ai-Media enters FY27 with a global infrastructure base covering 46 countries and more than 8,000 installed encoders. The company identified more than 2,200 units that are over five years old, creating a potential refresh opportunity during FY27 and FY28.

The company stated that new-generation UHD592 and AIX-1 platforms are designed to support evolving customer requirements, including processing capacity, security, multilingual workflows and voice applications. Initial shipments of new hardware encoders have commenced, with new encoder sales expected to be weighted towards the second half of FY27.

Ai-Media will offer hardware through outright purchase and hardware-as-a-service models. The company noted that customer upgrades create opportunities for additional LEXI service adoption following infrastructure deployment.

FY27 Commercial Priorities and Capital Management

Ai-Media’s FY27 commercial priorities include expanding the established LEXI Text business across broadcast and global media markets, increasing customer usage, securing new customers and extending regional adoption.

The company is also progressing commercialisation of LEXI Voice, Recorded, Audio Description and Insights products. These initiatives are focused on converting customer trials and validation programs into contracted paid usage.

On 30 September 2026, Ai-Media announced an on-market share buy-back program covering up to 20.8 million shares, representing up to 9.9% of current issued share capital. The program may commence no earlier than 26 October 2026 and is scheduled to remain open until 25 October 2027, subject to Board discretion.

The company stated that any shares acquired under the buy-back will be cancelled and funded from existing cash reserves.

Risks and Uncertainties

Ai-Media remains exposed to risks associated with customer adoption, commercialisation timelines for new products, technology development, competitive conditions and the timing of hardware refresh cycles. The conversion of recurring revenue growth into earnings and cash generation will depend on customer expansion, product adoption and operational execution.