Highlights

  • Vection reported FY26 Revenue of $42 million, up 14% year-on-year.
  • Adjusted EBITDA increased 596% to $3.8 million and Operating Cash Flow turned positive.
  • Algho AI secured contracts across more than ten enterprise verticals during FY26.
  • Vection received $1.2 million in non-repayable government R&D funding for AI, XR and digital health programs.

Vection Technologies Ltd (ASX:VR1) reported FY26 results showing growth across its artificial intelligence and Extended Reality technology platforms. The company recorded revenue of $42 million for the year ended 30 June 2026, representing a 14% increase compared with FY25.

Adjusted EBITDA increased to $3.8 million, up 596% from $0.5 million in FY25, while Underlying EBITDA reached $6.0 million. The company also generated positive operating cash flow of $959,000 during FY26, compared with a negative operating cash flow position in the prior year.

Gross Margin expanded to 65.1%, an increase of 18.3 percentage points from FY25, supported by the company’s focus on higher-value technology solutions and recurring contract-based programs.

Vection reported that its commercial operations are supported by two primary platform areas: multi-year contracted programs and the Algho AI platform. During FY26, Algho AI secured contracts across more than ten enterprise verticals, while the company continued expanding its INTEGRATEDXR technology capabilities.

The company also strengthened its Balance Sheet during FY26. Net Assets increased to $33.9 million, while cash and cash equivalents reached $9.3 million at year end.

AI Commercial Expansion and Strategic Technology Programs

Vection continued expanding its AI product ecosystem during FY26 through Algho AI, an artificial intelligence platform designed for enterprise applications. The company secured multiple contracts across sectors including agritech, cybersecurity, automotive, healthcare, public administration, human resources, utilities, transport and hospitality.

During FY26, the company secured approximately $5.6 million in new ARR and project contracts, including a $3.3 million Accessibility Kiosk order embedding Algho AI into purpose-built public terminals for airports and government offices. Additional contracts included approximately $2.3 million across five sectors, including an ARR component extending into FY27.

The company’s defence platform also progressed through multi-year programs. Vection secured $7.7 million in defence orders in July 2025 and entered a $22.3 million multi-year framework agreement with a NATO-approved partner, scalable to $29.5 million.

A February 2026 FEDRA order valued at $2.2 million represented the first commercial delivery of the company’s Far Edge Data Retention Appliance under the defence framework.

Vection also continued integrating Digital Experience Labs Pty Ltd (DXLabs), acquired in March 2026. DXLabs contributed positively to Group Earnings after Acquisition and expanded opportunities across digital transformation and enterprise automation activities.

R&D Funding, Partnerships and FY27 Focus Areas

In August 2026, Vection received $1.2 million in non-repayable, non-dilutive government R&D funding across four technology programs. The funding supports development activities across Artificial Intelligence, Extended Reality, Digital Health and Inclusive AI products.

The four programs include L4ALL for inclusive AI and sign language translation, URGO ISI for cultural and museum AI, AVATART Calabria for immersive heritage visualisation and OMNIREHAB for AI-powered digital health rehabilitation.

These programs are aligned with Vection’s core platforms, including Algho AI, INTEGRATEDXR and accessibility-focused hardware capabilities. The company is working with research institutions including University College London, the National Research Council of Italy, University of Milano-Bicocca, University of Calabria and Università Telematica Internazionale Uninettuno.

Following FY26, Vection secured additional commercial agreements, including a $7.5 million three-year framework agreement with URBANnext SA and a $3.2 million order from Retelit Digital Services for Algho AI deployment.

The company enters FY27 with priorities including conversion of defence frameworks into delivered revenue, expansion of Algho AI across international markets, integration of DXLabs and continued improvement in cash conversion from operating activities.

Key Insights

Vection Technologies’ FY26 performance highlighted revenue growth, improved operating metrics and expansion of its AI and XR technology platforms. The company continued developing commercial applications through enterprise contracts, defence programs, R&D initiatives and strategic acquisitions.