Icetana AI (ASX: ICE) has announced an expanded contract with long-term customer Curtin University, adding $37,000 to its annual recurring revenue (ARR) and reinforcing its long-term customer relationships.
Icetana has finalised a 3-year Software as a Service (SaaS) renewal and expansion order from Curtin valued at $242,000.
This deal expands camera licences and increases Curtin University related ARR by 85%.
The 3-year term was back-dated to commence on 1 February 2026 and will conclude on 31 January 2029, with payment terms annual in advance.
Majid Al Futtaim Renewal Success
This latest win follows a major renewal announced earlier this year.
Icetana AI renewed and expanded its contract with its largest customer, Majid Al Futtaim Properties (MAF), for US$1.49 million (approximately A$2.1 million).
This significant renewal included a US$146,000 (approximately A$209,000) increase in MAF’s annual recurring revenue.
MAF has utilised Icetana AI’s software since 2016 to support security across 16 shopping malls in the Middle East.
Half-Year Financial Performance
For the half-year ended 31 December 2025, Icetana AI reported a 43% increase in revenue, reaching $1.3 million.
Recurring revenue also saw robust growth of 43%, climbing to $1.27 million.
Gross profit increased by 56% to $1.15 million, with gross margins improving to 88.4%.
Cash receipts from customers rose by 69% to $1.1 million.
However, the company reported an increased operating cash outflow of $1.6 million, primarily due to higher sales and marketing expenditure, contributing to a loss of $1.8 million attributable to owners.
Strategic Partnerships and Product Development
Commercial momentum is largely driven by strategic partnerships, notably with SoftBank Robotics and Macnica.
Product development efforts are focused on improving algorithm quality, explainability, and enhancing workflow efficiency and integrations, including progress towards Genetec Gold Partner status.
Net ARR retention improved to 100% in the most recent quarter, demonstrating resilient customer relationships.
The previously announced $1.7 million Middle East safe city project, however, remains delayed with no confirmed deployment timeline.
Outlook and Investor Considerations
Icetana AI continues to demonstrate commercial traction with contract wins and renewals, evidenced by the Curtin University expansion and the significant Majid Al Futtaim renewal.
While revenue and recurring revenue growth are positive indicators, investors will closely monitor the company's path to profitability, its ability to manage operating cash outflow amidst increased marketing spend, and the progress of significant projects like the Middle East safe city development, which remains delayed.
