Highlights

  • FortifAI shares rose 7.35% to AUD 0.73 on 1 May 2026, as investors reacted positively to Q3 FY26 update.
  • Nol8 technology Acquisition completed through FastAI deal.
  • Strategic placements raised a total of AUD 20 million, including a pending AUD 15 million Tranche.
  • Closing cash balance stood at AUD 6.812 million with no Debt.
  • Nol8 roadmap outlines commercial engine launch targeted by end of CY2026.
  • Cash receipts from customers totalled AUD 373k for the quarter.
  • The stock is up approximately 2333.33% over the past year.

FortifAI Ltd (ASX:FTI) shares advanced 7.35% to AUD 0.73 during the afternoon session on 1 May 2026, as investors responded to the company’s March quarter (Q3 FY26) activity report released on 30 April 2026. Today’s move follows the release of updates covering technology development, Capital raising activity, and operational progress. The stock has also recorded a significant rise of approximately 2333.33% over the past year, placing heightened attention on the company’s latest developments and strategic direction.

FortifAI Ltd is an ASX-listed artificial intelligence infrastructure company focused on developing and commercialising AI-driven technologies. The company operates across AI infrastructure and gaming, with its portfolio including the Nol8 AI Data Plane and Mighty Kingdom Games Studio. FortifAI’s strategy centres on leveraging artificial intelligence to drive efficiencies and expand capabilities across its technology stack and digital content operations.

Acquisition and Technology Integration Take Centre Stage

A key development during the quarter was the completion of the Acquisition of FastAI Pty Ltd, which provides FortifAI with exclusive access to the Nol8 technology. This Acquisition represents a central component of the company’s broader strategy to build and commercialise AI infrastructure solutions.

Following the Acquisition, FortifAI confirmed the development and commercial roadmap for Nol8’s Agentic AI Data Plane. The roadmap outlines three stages: a Demonstration Engine that has already been proven, a Customer Benchmarking Engine targeted for July 2026, and a Commercial Engine expected to be ready for launch by the end of calendar year 2026.

The company also reported benchmark testing outcomes subsequent to the quarter. These findings indicated that Nol8’s FPGA-accelerated engine can deliver up to approximately 200,000 times the throughput of the Google RE2 standard under AI-grade workloads in extreme conditions. In addition, a single Nol8 FPGA appliance was noted to replace the compute capacity of up to 60,359 CPUs, highlighting the potential infrastructure scale of the technology.

Capital Raising Supports Development and Expansion

FortifAI reported that it has secured a total of AUD 20 million through strategic placements to support the development and commercialisation of its technology. During the quarter, the company completed a AUD 5 million Placement at AUD 0.30 per share. It also announced a further AUD 15 million Placement at AUD 0.715 per share, which is scheduled to complete in early May 2026.

These placements are intended to fund technology advancement, Marketing initiatives, Business development programs, and general working Capital requirements. According to the company, the placements were supported by institutional Demand, providing funding to accelerate the rollout of Nol8 and support existing operations.

Operational Developments Across Business Units

Within its operations, FortifAI continued to progress activity across both its AI infrastructure and gaming segments. The Nol8 platform remained a focal point, with the company engaging in enterprise-level discussions across AI verticals as part of the Customer Benchmarking Engine phase.

To support this growth, FortifAI appointed Jamie Pope as Chief Solutions Officer of Nol8. His role is focused on managing enterprise Demand and supporting customer integration efforts ahead of the commercial engine launch.

Meanwhile, Mighty Kingdom Games Studio (MKL Studio) maintained ongoing contract delivery and continued generating Revenue through live operations, support services, and feature development for existing titles. However, the company noted that Royalty and contract receipts during the quarter were lower compared to the previous period, partly due to the early recognition of Revenue expected in the second half of FY2026.

MKL Studio also increased its Business development activity, including participation in international industry conferences and engagement with prospective clients. The company continues to pursue new opportunities across work-for-hire development, platform partnerships, and monetisation of intellectual property.

Focus on Efficiency and Internal Review

During the quarter, FortifAI undertook a review of MKL Studio’s operations, covering areas such as go-to-market strategy, cost structures, IT processes, and infrastructure utilisation. The company also adjusted its operating model, including organisational changes such as the redundancy of the Studio Director role, with Business development activities being absorbed within existing resources.

The studio remains focused on improving operational efficiency and incorporating AI-enabled tools into production workflows where applicable.

Financial Position and Cash Flow Overview

From a financial perspective, FortifAI reported a closing cash balance of AUD 6.812 million as at 31 March 2026, with no Debt on its Balance Sheet. The company also indicated that it expects to receive rebates and tax incentives related to the FY25 period.

Cash receipts from customers for the quarter totalled AUD 373k, while operating cash outflows amounted to AUD 1.46 million. These outflows included approximately AUD 1.1 million invested in Nol8 technology development and MKL Studio operations.

Net cash used in Operating Activities was reported at AUD 1.067 million for the quarter. On the financing side, the company generated AUD 4.952 million in net cash inflows, primarily from Equity funding. This contributed to an overall increase in cash during the period.

FortifAI also reported that it has an estimated funding runway of approximately 6.39 quarters based on current cash levels and operating expenditure.

Corporate Updates and Governance Changes

The quarter also included several corporate developments. Yosef Keret was appointed as a director following the completion of the Nol8-related Acquisition. Additional board changes included the appointment of Sonu Cheema as a non-executive director and the resignation of Andrew Scott Cole. Jake van der Hoek was appointed as joint company secretary.

The company also confirmed that a legal matter involving KitCatCo Pty Ltd has been settled, with proceedings discontinued by consent and no order as to costs.

Payments to related parties during the quarter totalled AUD 138k, comprising salaries, wages, and consultancy fees to directors and associated parties.

Outlook and Strategic Direction

Looking ahead, FortifAI indicated that it will continue integrating the Nol8 technology and Mighty Kingdom Business units. The company operates with teams across Australia, Israel, and the United States, and is focused on advancing its technology capabilities and commercial objectives.

Ongoing Capital market support, operational efficiencies, and Revenue from the gaming division are expected to contribute to the development of a minimum viable product (MVP) for Nol8. The company also noted that it is expanding its team to support commercialisation efforts and pursue potential partnerships.

What This Means for Investors?

FortifAI’s latest quarterly update outlines progress in technology development, Capital raising, and operational restructuring. The completion of the Nol8 Acquisition, defined development roadmap, and funding initiatives appear to be key elements drawing investor attention.

The share price movement on 1 May 2026 aligns with the release of this update, as Market Participants assess the company’s progress across its AI infrastructure platform and supporting Business units. With the stock already recording a substantial rise over the past year, the latest developments are being closely monitored in the context of future execution and commercial milestones.