GFAIW · Guardforce AI Co., Limited

Guardforce AI’s 2025 results reflect a deliberate pivot toward AI-driven growth while preserving stability in its core business. Total revenue grew 8.0% year-over-year to $35.23 million, with the newly defined AI, RaaS & Smart Solutions segment — now comprising 13.4% of revenue — growing 15.3%, primarily due to expanded adoption of Smart Cash Solution by retail clients in Thailand. Meanwhile, Legacy Secured Logistics, representing 86.6% of revenue, grew 6.9% and maintained 99.96% recurring revenue, underpinned by client retention improvements and a strategic shift toward retail customers — reducing overreliance on banks and enhancing earnings resilience. Gross profit rose 7.5% to $5.29 million, with gross margin held stable year-over-year, indicating disciplined cost management despite higher R&D spend. Net loss from continuing operations narrowed 10.1% to $5.29 million, and negative EBITDA improved 23.3% to −$2.48 million — the best performance since 2022 — reflecting scaling efficiencies and reduced drag from legacy impairments (e.g., no goodwill or intangible asset impairments in 2025 versus $219K in 2024). Management explicitly tied progress to three pillars: commercialization of DVGO (an agentic AI platform launched publicly in January 2026), geographic and vertical expansion of Smart Solutions (including a partnership with an international retail chain), and the March 2026 acquisition of MGAI — a validated entry into healthcare AI with cross-sector scalability. The $837,719 R&D investment (+115.4%) signals intensified product development, while $24.55 million in cash (up 11.9%) is earmarked for continued AI investment. Forward-looking commentary emphasizes organic growth via DVGO, cross-selling Smart Solutions to existing retail clients, selective M&A, and operational efficiency — all aimed at transitioning from service-driven to solution-driven, higher-margin revenue streams.