• Revenue up 5% underpinned by improved Detect performance
• Increased Gross Margin with Detect revenue driving gross margin improvement
• Growing Recurring Revenue of $2.6m, up 30% compared to prior year
• EBITDA turnaround on reduced and scalable cost base, up $2.9m to positive $2.0m

Ava Risk Group Ltd, a global leader in smart security and sensing technologies, presented its FY25(F) unaudited financial flash report. The company reported a 5% increase in revenue to $31.6m, underpinned by improved performance in its Detect segment. Gross margin improved to 64%, up 4% from the prior year, driven by the higher-margin Detect revenue. Recurring revenue grew 30% to $2.6m, and the company achieved a positive EBITDA of $2.0m, a $2.9m turnaround from the previous year, due to a reduced and scalable cost base following the completion of an organizational restructure. The company ended the period with $5.4m in cash, supporting its business expansion plans. While the reported revenue fell short of the previous guidance range of $35-$38m, the company attributed this to delays in several projects, which are now expected to be received and fulfilled in H1 FY26. The company outlined a strong growth outlook for FY26, targeting revenue growth of 20%+ and double-digit EBITDA margins, leveraging its existing cost base. Key drivers include a robust sales pipeline, growing recurring revenue, and enhanced commercial capabilities with high-profile partners. The company is well-positioned to become a global leader in smart digitization for security and asset protection, with a trusted customer base and investments in innovation.

Revenue growth of 20%+ in FY26, with gross margins expected to be maintained at around 64% and operating expenses growing no more than 5% to deliver the revenue growth. EBITDA margin for FY26 expected to be in double digits.

Ava Risk Group is targeting revenue growth of 20%+ in FY26, driven by a strong sales pipeline, growing recurring revenue, and enhanced commercial capabilities with high-profile partners. The company expects to maintain gross margins around 64% and limit operating expense growth to no more than 5% to deliver the targeted revenue growth, resulting in an EBITDA margin in the double digits.