• Revenue up 29.2% to $16.2 million
• Underlying EBITDA positive at $0.2 million
• Significant non-operational items impact reported net loss

Vection Technologies Ltd has reported its financial results for the half-year ended 31 December 2025. The company recorded revenue of $16.2 million, up 29.2% compared to the previous corresponding period. This growth was driven by continued expansion in the Defence and Healthcare sectors, supported by increasing adoption of Vection's integrated AI+XR ecosystem. Gross margin improved materially to 56%, up from 37% in the prior period, reflecting improved revenue quality, stronger pricing discipline, and operating leverage. Underlying EBITDA for the period was positive at $0.2 million, compared to $0.06 million in the prior corresponding period, demonstrating tangible progress toward structural profitability. The reported net loss of $9.3 million includes significant non-operational items, namely $1.51 million in acquisition and other non-operating costs, $3.44 million in share-based payments, and approximately $1.0 million in non-financial expenses. Excluding these extraordinary items, the net loss for the period would have been approximately $3.2 million, reflecting the underlying improvement in operating performance. On a year-to-date basis, the company generated positive net operating cash flow of approximately $0.09 million and reduced net bank debt by $3.1 million, underscoring management's focus on disciplined capital management and progressive deleveraging. Vection enters the second half of FY26 with strengthened liquidity, positive operating cash flow momentum, reduced net bank debt, a multi-year Defence framework, an increasingly scalable AI+XR+HW ecosystem, and expanding geographic coverage.

Vection expects to deliver continued revenue growth, margin expansion, and positive operating cash flow in the second half of FY26 as the company scales its integrated AI+XR+Hardware ecosystem across multiple verticals.

Vection enters the second half of FY26 with strengthened liquidity, positive operating cash flow momentum, reduced net bank debt, a multi-year Defence framework transitioning into structured execution, an increasingly scalable AI+XR+HW ecosystem, and expanding geographic coverage across Europe, Australia, Asia, and the United States. Management remains focused on converting contracted work into delivered revenue, increasing recurring revenue contribution, improving operating margins, and maintaining financial discipline as the company scales.