• Successful pivot to AI-driven growth, validated by $28M IBM partnership
• Investing in 'Small Language Model Factory' to build specialized AI models and applications
• Transitioning from legacy services to high-margin, scalable AI platform

Straker Ltd's FY26 interim results reflect the company's strategic pivot to AI-driven growth, which has been validated by a $28M partnership with IBM. The company is successfully navigating the transition from the 'old world' of predictable but low-margin translation services to the 'new world' of fast, scalable, and high-margin AI-powered solutions. This transition is being funded from a position of strength, with $0.5M in adjusted EBITDA and $8.7M in cash with zero debt. The company is deliberately focused on transitioning customers from legacy services to its AI platform, while investing in the development of its Tiri & Verify AI platform. The market is confirming Straker's strategy, as enterprises are seeking specialized, efficient, and secure AI agents rather than just 'jack-of-all-trades' large language models. The $28M IBM partnership is a validation of Straker's technology and business model, as the company is co-developing specialized small language models for IBM's watsonx platform and gaining access to new channels through IBM's extensive ecosystems and platforms. Straker is now moving from a services-based margin to a software (SaaS) margin, with the new model designed for high, scalable, and recurring-revenue margins. The company is executing on a three-phase plan, with the current phase focused on flawless execution of the IBM SLM and AI App co-development. Looking ahead, Straker is guiding for $38-$41 million in revenue and positive adjusted EBITDA in the coming year.

Straker Ltd is guiding for $38-$41 million in revenue and positive adjusted EBITDA in the financial year ending March 31, 2026.

Straker Ltd is executing on a three-phase plan, with the current phase focused on flawless execution of the $28M IBM SLM and AI App co-development. The company plans to scale its 'SLM Factory' to build new, high-value small language model agents for other key verticals, such as legal and finance, and expand its presence in the IBM watsonx catalog.