Quarterly Activities/Appendix 4C Cash Flow Report

• Customer cash receipts up 250% quarter-on-quarter and 166% year-on-year
• Net operating cash flow positive at $1.8m, compared to negative $1.7m in previous quarter
• $7.8m first order received under $22.3m NATO-aligned Defence framework

Vection Technologies Ltd, a leading provider of INTEGRATEDXR and AI-powered digital transformation solutions, has reported strong operational and financial results for the quarter ended 31 December 2025. Customer cash receipts were $17.5m, up approximately 250% quarter-on-quarter and 166% year-on-year, reflecting strong conversion of contracted revenues and improved collections. The company also reported positive net operating cash flow of $1.8m, compared to negative $1.7m in the previous quarter, marking a return to positive operating cash flow. Vection received its first $7.8m order under the previously announced $22.3m master framework agreement with a NATO-approved defence partner, extending total recognised revenue delivered to this customer to $12.3m since program commencement in 2023 and supporting the estimated FY26 revenue of $7.7m from this single customer. The company also secured $1.5m in new AI purchase orders during the quarter across multiple industry verticals, with approximately 45% from renewals and upselling. Vection continues to invest in its sales force, platforms, and M&A activities to drive further growth, with the recent acquisitions of Monogic in Hong Kong and Singapore, and DX LAB in Sydney expected to contribute to international sales development.

Vection estimates FY26 revenue from its NATO-aligned Defence customer to be $7.7m, with total recognised revenue delivered to date of $12.3m (unaudited).

Vection enters the second half of FY26 with a materially improved cash position, positive operating cash flow momentum, a structured, multi-year Defence framework now moving into execution, and a growing pipeline across Defence, AI, Healthcare and Retail markets. The company remains focused on converting contracted work into delivered revenue, increasing the proportion of recurring income, and maintaining disciplined execution as it scales.