AITX Preliminary Fiscal Year 2026 Results: Revenue Growth, Gross Margin Expansion, and Strategic Initiatives

Key Highlights

• Revenue Growth: Artificial Intelligence Technology Solutions, Inc. (AITX) reported a preliminary, unaudited revenue increase of \$1.61 million (26%) for the fiscal year ended February 28, 2026. Total revenue reached \$7.75 million, driven by customer adoption and expanding recurring revenue programs.
• Gross Profit Expansion: Gross profit increased by \$1.79 million (48%) to \$5.53 million, outpacing revenue growth. This was achieved through improved unit economics and disciplined cost control, with total cost of goods sold declining year-over-year despite higher sales.
• Gross Margin Improvement: Gross margin surged to approximately 71%, up from 61% in the prior year, reflecting enhanced profitability.
• Operating Expenses: Operating expenses remained flat at \$17.5 million. Increased investment in research and development (R&D) was offset by reductions in general and administrative costs.
• Loss Reduction: Operating loss improved by around \$2.0 million, demonstrating enhanced financial management and operational efficiency.

CEO Remarks and Strategic Focus

“Certainly, heading into last fiscal year, we expected stronger revenue growth. That said, we were able to navigate a particularly turbulent economy while maintaining overall improvements in various financial metrics and keep R&D fully funded. It was an important year in all aspects including how we’re positioned for the current fiscal year,” said Steve Reinharz, CEO/CTO and founder of AITX and all RAD subsidiaries.

Reinharz emphasized AITX’s commitment to the delivery of services connected to its SARA platform and increased ROAMEO deployments. The stationary business, which includes fixed-position devices such as ROSA and AVA, continues to expand and is expected to lead the company toward positive operational cash flow as scaling efforts proceed.

Important Shareholder Information

• Hardware Pricing Adjustment: Following year-end, AITX implemented a hardware pricing adjustment of approximately 14%. This reflects cost normalization and enhanced product capabilities, which could influence future margins and customer demand.
• Focus on Recurring Revenue: The company remains dedicated to long-term recurring revenue growth and advancing its SARA™ platform across its device portfolio.
• Operating Efficiency Initiatives: Continued focus on improving operating efficiency as the business scales, which is critical for achieving cash flow positivity.

Business Model and Market Opportunity

AITX, through its subsidiaries such as Robotic Assistance Devices (RAD-I, RAD-M, RAD-G, RAD-R), delivers a suite of AI-driven security and productivity solutions. Its Solutions-as-a-Service model is redefining the \$50 billion US security and guarding industry, offering 35–80% cost savings compared to traditional manned security and monitoring.

RAD solutions include stationary and mobile autonomous systems designed to complement or replace human personnel, with all AI-based analytics and software platforms developed in-house. Integration with leading industry platforms (e.g., Immix®) supports broader adoption in professional monitoring environments.

AITX’s operations have been validated through a successful SOC 2 Type 2 audit, reinforcing its credibility regarding data protection and compliance for enterprise and government clients.

Sales Pipeline and Growth Prospects

• Fortune 500 Penetration: The company maintains a robust sales pipeline, including over 35 Fortune 500 companies, with expanding opportunities across its subsidiaries.
• Recurring Revenue Streams: AITX expects continued growth as these opportunities convert into deployed clients, generating recurring revenue streams with significant expansion potential within each account.
• Diverse Industry Deployment: The company’s solutions are deployed across enterprises, government, transportation, critical infrastructure, education, and healthcare.

AI Platform and Technology Overview

AITX’s principal AI platform, SARA™ (Speaking Autonomous Responsive Agent), is designed to receive and process video, audio, and sensor data, apply automated analysis and inference, and support actions per operational objectives and human oversight. This technology underpins the company’s security and property management offerings.

The Board of Directors actively oversees AITX’s deployment of artificial intelligence, ensuring responsible and effective integration across products and services.

Forward-Looking Statements and Risks

Shareholders should note that the publication contains forward-looking statements, which are not guarantees of future performance. There are no assurances regarding the company’s ability to meet its targets for revenue, sales volume, cash flow positivity, ARR, or RMR. The company is not obligated to provide updates, and no information herein should be interpreted as indicative of future revenues, results of operations, or stock price movements.

Conclusion

The preliminary fiscal year 2026 report by AITX demonstrates solid revenue and gross margin growth, disciplined cost management, and a strategic focus on recurring revenue and scalable operations. The hardware price adjustment and continued investments in R&D, alongside a strong sales pipeline and validation of operational controls, position AITX for further expansion. These developments are important for shareholders, as they may have a material impact on future share value, especially as the company pursues positive operational cash flow and broader market penetration.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice, an offer, or solicitation to buy or sell securities. All forward-looking statements are subject to risks and uncertainties. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.

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