• Achieved major milestone with North African Airport Project
• Secured $4.3m Capital Raise to accelerate growth and repay debt
• Continued Gross Margin Improvement, EBITDA Profitability, and Positive Cashflow from Operations

Beonic Ltd announced its Q1 FY26 Quarterly Business Review, highlighting several key achievements. The company secured the first major phase of its North African Airport Project, valued at $7.3m, after successfully delivering the initial Proof of Concept. Beonic also announced a $4.27m capital raise through the issuance of convertible notes, which will be used to refinance existing debt, accelerate the company's growth strategy, and provide working capital. The capital raise was strongly supported by Beonic's largest shareholder, Thorney Investment Group, as well as the company's Board, CEO, and key members of the management team. During the quarter, Beonic secured $2.5m in new contract wins, including deals with major clients in the US and APAC regions, and also renewed $3.1m in existing contracts. The company experienced a reduction in recurring revenue from two US-based customers, resulting in a $328k ARR loss, which is expected to impact revenue in Q2 FY26. However, Beonic continued to improve its operational efficiency, achieving a gross margin of 78.3% and an EBITDA profitability of 18.9% in Q1 FY26. The company also maintained positive net cash flow from operations, despite one-off costs associated with cost-cutting measures. Beonic's outlook for FY26 includes maintaining gross margin improvement, EBITDA profitability, and positive net cash flows, as well as the launch of a new AI-based CCTV product in North America and the completion of the North African Airport project.

Maintain gross margin improvement (Q1 FY26 78.3%, FY25 77.3%, and FY24 67.4%), maintain profitable EBITDA (Q1 FY26 18.9%), and maintain positive net cash flows from operations.

Beonic's outlook for FY26 includes maintaining gross margin improvement, EBITDA profitability, and positive net cash flows, as well as the launch of a new AI-based CCTV product in North America and the completion of the North African Airport project.