AITX on Track to Triple Annual Recurring Revenue Run Rate to $10 Million by End of Fiscal Year

Strong Growth in Q3 Continues Path to $10 Million ARR, Powered by Expanding RMR, Product Successes, and a Robust Sales Funnel

Following its strong Q2 FY 2025 results, RAD added $105,000 in recurring monthly revenue (RMR) during Q3, which ended November 30, 2024, bolstering its momentum toward this pivotal financial milestone. As significant is the size and quality of the expected incoming orders is larger and higher than it’s ever been. This RMR is preliminary and subject to adjustment.   

“Tripling our ARR in just one year, like we did last year, will be a testament to the value that RAD brings to our clients,” said Steve Reinharz, CEO/CTO of AITX and RAD-I. “We are focused on maintaining the growth rate despite the Law of Large Numbers through continued invention of solutions such as RADCam and SARA.”

Sales Funnel Expansion:

During Q3 RAD-I’s sales funnel grew dramatically, with a pipeline of anticipated contracts and high-probability sale opportunities now totaling $1.8 million in potential RMR, reflecting heightened demand for RAD-I’s game-changing solutions.

Driving Growth through Innovation:

• RIO’s Proven Success: RIO™ (ROSA Independent Observatory), which includes at least one ROSA™ unit, has emerged as RAD-I’s strongest solution, offering unparalleled value in autonomous security and surveillance. Its versatility and effectiveness have made it a cornerstone of RAD-I’s growth strategy, consistently delivering measurable results for clients across multiple industries.
• SARA’s Anticipated Impact: The introduction of SARA™ (Speaking Autonomous Responsive Agent) is expected to significantly expand RAD-I’s ability to capture larger portions of client budgets, delivering direct benefits versus the traditional reliance on costly monitoring centers.
• RADCam Penetration: Robotic Assistance Devices Residential, Inc. (RAD-R), the Company’s residential-focused subsidiary, is poised to make waves in the competitive home security camera market with RADCam™, what the Company believes to be the world’s first talking security camera.

“We’re thrilled with the momentum we’re seeing across our full portfolio of solutions, including RIO, ROSA and AVA,” added Troy McCanna, Sr. VP of Revenue Operations and CSO of RAD-I. “We are looking good to continue a strong rate of growth with this core product set and I anticipate more exposure through planned visibility with several of our signature clients.”

“The sales growth we’ve achieved this year has been exceptional, reflecting the growing demand for our innovative solutions,” said Mark Folmer, CPP, PSP, FSyI, President of RAD-I. “I’m even more energized about what lies ahead as AVA Gen 4, ROAMEO Gen 4, SARA, and RADDOG enter the market. These advancements will elevate our offerings and accelerate growth as we continue to solve critical challenges for our clients.”

Recurring monthly revenue (RMR) and annual recurring revenue (ARR) are vital indicators of financial health and stability for technology-driven businesses like AITX. These predictable revenue streams not only provide a strong foundation for sustainable growth but also enable the Company to make strategic investments in innovation, customer success, and market expansion.

With RAD-I’s and RAD-R’s aggressive growth trajectories and a steady stream of innovative solutions, the Company remains committed to achieving operational profitability while continuing to disrupt the security technology and property management landscapes.