- Q4 Revenue Growth: Record $39.3M in Q4, up 10% YoY, and $150.5M annual revenue, +18% YoY.
- Annual Recurring Revenue (ARR): Surpassed $84.5M, a 30% increase from fiscal 2024.
- Adjusted EBITDA Improvement: Turnaround to $2.2M profit in Q4 and $6.1M for the year, reversing a $2.4M loss in 2024.
- G8 Product Launch: Next-gen safety wearables to drive growth, with commercial shipments starting February 2026 and $46.6M in cash reserves.
- Liquidity & Market Positioning: $76.4M available liquidity and strategic focus on Middle East energy markets to offset North American slowdowns.
Financial Performance Highlights
The company's cash and short-term investments stood at $46.6 million, with available liquidity of $76.4 million. The CFO, Robin Kooyman, will be taking maternity leave, and Chris Curry will serve as interim CFO. According to Robin Kooyman, "the launch of our next-generation connected safety wearables, the G8, is expected to drive growth and increase service revenues."
Product Launch and Growth Prospects
The G8 is expected to unlock more service revenue over time, with a focus on adding new services that customers can adopt over the next 5 years. The company has invested single-digit millions in its manufacturing facility to support the G8 launch, with commercial shipments expected to begin in February 2026. The G8 features a custom remote speaker mic, which enhances the push-to-talk (PTT) experience and is expected to drive accessory revenue growth.
Valuation Metrics
Using the current valuation metrics, the company's P/S Ratio stands at 3.59, and EV/EBITDA is at 105.2. The ROE is -10.75%, and ROIC is -5.81%. Analysts estimate next year's revenue growth at 24.9%. These metrics indicate that the market is pricing in significant growth expectations for the company.
Operational Insights
The company has seen a slowdown in hardware refresh rates, with customers extending their hardware life cycles, but this is expected to change with the G8 launch. The U.S. government shutdown is expected to have a single-digit million impact on the company's revenue. The ADNOC partnership has shown significant growth, with 2,500 devices shipped and a potential total of 28,000 devices over the next 2 years.
Margin Analysis
Product gross margins were 40% in the quarter, driven by factors such as inventory growth and factory utilization. However, the company expects a slight drop in product gross margins in the coming quarters as it ramps up the G8. The service gross margin is expected to remain stable in the short term, with potential upward pressure in the long term as new services are added.