• Technology revenue grew 19% to $41.1M, now 63% of total revenue
• Annual Recurring Revenue (ARR) of $17.0M, with 86% technology gross margin
• ARR growth guidance of ~35% to ~$23.0M in FY26

AI-Media Technologies Limited (ASX: AIM), a global provider of AI-driven captioning, transcription and translation services, has reported its financial results for the financial year ending 30 June 2025. The company became a technology-led business, with technology revenue accounting for 63% of total revenue, which grew by 19% to $41.1M. Annual Recurring Revenue (ARR) reached $17.0M, with a technology gross margin of 86%. The company provided ARR growth guidance of ~35% to ~$23.0M in FY26. Total revenue declined 2% to $64.9M, driven by a deliberate 25% reduction in low-margin legacy Services revenue. Gross profit grew 6% to $45.1M, with total gross margin improving from 64% to 69%. Underlying EBITDA increased 11% to $4.6M, despite $3.5M in R&D expenses for LEXI Voice and LEXI AI. Operating cash flow grew 48% to $5.3M, and the company closed the year with a cash balance of $14.7M. Key product highlights include the launch of LEXI Voice, an AI-powered live voice translation solution, and the acceleration of R&D for LEXI AI, a confidential and private Generative AI solution. Looking ahead, the company's strategic expansion revolves around product expansion, geographic penetration, and segment differentiation.

ARR growth guidance of ~35% to ~$23.0M in FY26.

AI-Media's strategic expansion revolves around three pillars: 1) Product Expansion: Increasing product penetration within existing customers, particularly monetizing new offerings such as LEXI Voice and LEXI AI. 2) Geographic Penetration: Building on FY25 diversification momentum to replicate North American achievements in Europe and Asia. 3) Segment Differentiation: Strengthening position in Enterprise, Education, and Government sectors.