- 01ARR FY27: A$44-46m, +22-28%.
- 02Total rev A$61-63m; EBITDA A$3.5-4.5m.
- 03ARR margins ~85%; focus on LEXI Text, encoders.
- 042,200+ encoders >5 yrs; UHD592/AIX-1 shipped.
AI-Media Technologies (ASX: AIM) is targeting year-end annual recurring revenue (ARR) of between $44 million and $46m in the 2027 financial year, representing growth of about 22% to 28% from $36m at 30 June 2026.
The AI-powered language technology group is also guiding to total revenue of $61m to $63m and adjusted EBITDA of $3.5m to $4.5m.
AI-Media expects ARR gross margins to remain around 85% as it seeks to turn a larger recurring revenue base into faster earnings and cash generation.
Commercial priorities centre on scaling LEXI Text, converting an installed base of more than 8,000 encoders, commercialising newer LEXI products, and extending access through software, integrations, and partners.
The company ended FY26 with $15.9m in cash and no external debt after fully expensing $7.7m of product and research and development spending.
Recurring Revenue Increases
ARR increased 50% to $36m in FY26, while software-as-a-service revenue rose 42% to $34.1m, with technology accounting for 74% of group revenue.
Management expects high-margin recurring revenue growth, supported by cost discipline, to produce adjusted EBITDA growth of about 67% to 114% from FY26, compared with expected total revenue growth of about 1% to 5%.
The guidance places greater emphasis on revenue quality than headline growth, with high-margin ARR expected to support materially faster adjusted EBITDA growth than total revenue.
“We intend to demonstrate that the growth in our recurring business can translate into stronger earnings and cash generation,” co-founder and chief executive officer Tony Abrahams said.
“Shareholders will be able to assess that progress against the financial guidance and operating measures we set out today.”
Installed Encoder Refresh
More than 2,200 of AI-Media's installed encoders are over five years old, creating a potential refresh pool across FY27 and the following financial year as customers seek greater processing capacity, security, multilingual capability, and support for newer video formats.
Initial shipments of the UHD592 and AIX-1 have commenced, with new encoder sales expected to be weighted to the second half and available through outright purchase or hardware-as-a-service models.
AI-Media expects upgrades to create capacity for customers to adopt additional LEXI services, while LEXI Voice, LEXI Recorded, LEXI AD, and LEXI Insights are at varying stages of commercialisation and must convert trials and validation into contracted paid use.
Broadcast and global media remain the core near-term growth engine, while newer products and adjacent workflows will receive further investment as customer adoption and commercial returns develop.
The company will track progress through ARR, retention and expansion, encoder orders and deployments, adoption of additional LEXI products, adjusted EBITDA, and cash generation, with deployment timing and growth costs affecting how recurring revenue converts into earnings.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.