Vection reports FY26 lift as AI contracts grow

Vection Technologies has reported FY26 revenue of $42 million and adjusted EBITDA of $3.8 million, citing growing adoption of its artificial intelligence products across enterprise and government-related markets.

According to the company’s reported figures, adjusted EBITDA rose 596 per cent from the previous year, while gross margin increased to 65.1 per cent from 46.8 per cent. Vection also said it generated its first positive full-year operating cash flow and entered the new financial year with more than $10.6 million in new post-period contracted value. The update did not provide all statutory profit measures in the supplied material, so the extent of any net profit result remains unclear from the source.

The company has been repositioning from its earlier extended-reality focus toward enterprise AI and digital transformation. It pointed to use of its Algho AI platform across sectors including defence, data centres, government and corporate clients. During FY26, Algho AI secured about $5.5 million in contracts across more than 16 enterprise verticals, with a further $5.6 million in annual recurring revenue and project contracts secured in June.

Post-period activity included a reported $3.2 million order from Italian IT services group Retelit Digital Services and a three-year $7.5 million framework agreement with Swiss smart-city business URBANnext. Vection also said it had installed two Algho AI Appliances at Retelit’s DC Avalon 3 data centre.

In defence-related work, the company reported a $22.3 million multi-year framework with a NATO-approved partner, scalable to $29.5 million through to the end of 2030. It said the first commercial order under that framework was valued at $2.2 million.

Vection has also expanded in Australia through its acquisition of Digital Experience Labs, known as DXLabs, and reported AUD $1.2 million in non-dilutive government research and development funding in August. The commercial performance of these initiatives beyond the reported contracted values remains unresolved.