Key Highlights

  • Icetana Ltd (ASX:ICE) shares closed at $0.054 on 21 October 2026, up 14.89%.
  • ARR was $3.1 million at 30 September 2026, up 19% on the prior quarter, with quarterly revenue of $838,000.
  • Net operating cash outflow was $712,000 for the quarter, and cash at 30 September 2026 was $3.9 million.

icetana Limited (ASX:ICE) shares rose 14.89% to close at $0.054 during the trading session on 21 October 2026, while the S&P/ASX 200 (XJO) stood at 8,809.20, down 7.70 points or 0.087%. The Perth-based company builds self-learning security artificial intelligence (AI) software for large-scale surveillance networks.

What icetana does

icetana AI develops self-learning AI software that analyses video from surveillance networks to help security operators identify events of interest. Its platform includes tools such as Forensic Quick Find, which searches camera footage for a person of interest, as well as a Watch Agent and a Triage Agent that monitor cameras and prioritise alerts.

The company sells through partner channels in the United States and Asia-Pacific, including Macnica and SoftBank Robotics in Japan, and offers Antara Core as a private, on-premise option for customers.

September 2026 quarterly report: financial metrics

On 20 October 2026, icetana AI released its activities report and Appendix 4C for the quarter ended 30 September 2026 (Q1 FY27). Amid today’s share price gain, this update gains attention. Annual recurring revenue (ARR) was $3.1 million at 30 September 2026, up 19% on the previous quarter and up 35% on a year earlier. Total quarterly revenue was $838,000, up 29% on the previous quarter and up 40% year on year, and included $100,000 of non-recurring revenue for partner-funded platform security and compliance work.

Cash received from customers was $910,000, down 37% from $1.4 million in the previous quarter, which included an annual renewal from the company’s largest customer, and up 133% year on year. Gross margin was 92%, in line with the previous quarter, and net ARR retention rose four percentage points to 104%.

Orders, renewals and Antara Core

Millennium Services Group, a SoftBank Robotics-controlled portfolio company in Australia, placed the third order for Antara Core, totalling $675,000 over five years. The company said it is the platform’s third commercial sale in as many months, as announced to the ASX on 18 September 2026.

Antara Core went live at its first commercial site during the quarter, with training completed and hypercare in progress. A second site in the same shopping-centre portfolio began licensing from 1 September 2026, and both sites are under a combined $617,000 order announced in June 2026. In Japan, icetana reported proofs of concept and renewals of existing contracts with multiple customers, which it stated are not material on a standalone basis.

The company also reported multiple renewals with existing customers across North America and Asia-Pacific, and said growing contracts from existing customers remains a focus of its customer development and success efforts. Net ARR retention of 104% was mostly driven by a large expansion sale to an existing customer through Millennium Services Group.

Product development and cash flow

The quarter included the release of version 7.1 of the Safety & Security platform, support for NVIDIA’s latest-generation AI processors, upgrades to Forensic Quick Find, the Watch Agent and the Triage Agent, improved reliability for large multi-site customers, and improved Arabic and Japanese language support. The company began a SOC 2 attestation program and is targeting a SOC 2 Type 1 report by 31 December 2026.

Net operating cash outflow for the quarter was $712,000, compared with $134,000 in Q4 FY26. Operating cash expenditure was about $1.6 million, including $1.2 million of staff costs, $262,000 of operating and research and development costs, $99,000 on sales, marketing and partner expansion and $83,000 on administration and corporate costs. Over the 12 months to 30 September 2026, net operating cash outflows averaged $226,000 per month, and cash at quarter-end was $3.9 million.

Sector context

Video analytics and AI-enabled security software is used in sectors such as retail, transport, property and public safety, where operators monitor large numbers of cameras. Enterprise buyers, particularly in the United States, often require independent security attestations such as SOC 2 before purchasing software, which is the context the company gives for its attestation program. Sales to large customers can involve proofs of concept and multi-year contracts.

Risks and uncertainties

The quarter’s net operating cash outflow was higher than in the prior quarter, and cash receipts from customers declined compared with a quarter that included a large annual renewal. The company’s $3.9 million cash balance relative to its recent outflows means it may require further funding. Revenue includes a component of non-recurring work, results rely on partner channels, and the SOC 2 target may not be achieved by its stated date. Shares priced at $0.054 can move sharply.

What’s next

The company has stated that its focus for the rest of FY27 is turning its partner channels into repeatable sales, with continued deployment of Antara Core and work toward a SOC 2 Type 1 report by 31 December 2026.