• Revenue of $31.8 million, 3% decline due to strategic shift to SaaS
• Gross profit up 5% to $21.4 million, gross margin improved to 67%
• Launched two new LEXI products - LEXI Voice and LEXI Brew

AI-Media Technologies Limited (ASX: AIM), a global leader in AI-powered live and recorded captioning, transcription, and translation solutions, reported its financial results for the half year ending 31 December 2024 (1H25). Revenue declined 3% year-over-year to $31.8 million, reflecting a 17% decrease in Services revenue, offset by a 12% growth in Technology revenue, which reached $17.5 million. This shift underscores AIM's continued transition toward higher-margin, faster, and more accurate AI-powered solutions. Total gross profit rose 5% to $21.4 million, with gross margins improving to 67% from 63% on the prior corresponding period, driven by the increasing share of higher-margin Technology revenue. 1H25 EBITDA declined 63% on the prior corresponding period to $0.7 million, while operating cash flow was relatively flat at $3.4 million, reflecting timing changes on revenue recognition with the switch to SaaS billing. AIM's cash balance increased by $3.3 million in the half to $14.2 million, ensuring continued financial flexibility to drive long-term growth and investment. During 1H25, AIM focused on scaling SaaS adoption within its core US Broadcast market, expanding its presence in the Government sector across the Americas region, and accelerating its transition out of Services within the APAC Broadcast market. LEXI's growth remained a key driver of AIM's success, with revenue increasing 45% year-over-year to $7.3 million and volume surging 48% to 33.8 million minutes. AIM also made significant product investments in two new groundbreaking LEXI product lines - LEXI Voice and LEXI Brew - as part of its commitment to advancing AI-powered media solutions beyond live captioning.

FY25 EBITDA expected to be similar to FY24.

In 2H25, AIM will focus on further expanding its Broadcast segment, with a strategic emphasis on growing encoder sales in the European Broadcast market while scaling APAC operations through index customers in key new markets. Additionally, AIM will continue expanding its presence in underpenetrated sectors, particularly Government and Enterprise, leveraging its AI-powered LEXI solutions to drive adoption and long-term revenue growth.