AoFrio (AOF) H1 2026 earnings summary

Executive summary

• Revenue for 1H26 was $33.8 million, down 21.5% year-over-year, mainly due to a 50.5% drop in Motors revenue, while IoT revenue grew 6.8% to $23.2 million.

• EBITDA rose to $0.9 million from $0.7 million in 1H25, aided by a $1.2 million RDTI claim.

• Gross margin improved to 34.9% from 29.6% as the business mix shifted toward higher-margin IoT products.

• The SCS 800 cellular controller and AoFrio iQ SaaS platform were commercially launched in June 2026, with 33 global trials underway.

• Food Retail segment advanced from proof-of-concept to commercial pipeline, securing its first major order and planning a 70-store rollout.

Financial highlights

• IoT device shipments increased 4.9% to 322,000 units; recurring revenue invoiced was $2.0 million.

• Motors revenue fell to $10.6 million due to customer shifts and tariffs; IoT hardware and services offset some decline.

• Net loss for 1H26 was $2.1 million, compared to a $1.8 million loss in 1H25.

• Cash at 30 June 2026 was $3.6 million, up from $2.0 million a year earlier; net debt reduced to $5.1 million.

• Operating expenses remained broadly unchanged.

Outlook and guidance

• Full-year revenue improvement over 2025 now appears unlikely due to reduced Motors demand and global uncertainty.

• EBITDA for 2026 is forecast to be broadly consistent with 2025.

• IoT revenues expected to rise in 2H26 as new products gain traction; software margins targeted at 70%.