Executive Summary
In Q3 2025, Artificial Intelligence Technology Solutions Inc (AITX) reported revenue of $1,751,000, reflecting a significant increase of 30.28% quarter-over-quarter (QoQ) and a year-over-year (YoY) growth of 193.31%. However, these gains were accompanied by substantial net losses of $3,704,000 as the company continues to grapple with high operational expenditures and interest costs, culminating in an operating loss of $2,303,000.
Key Performance Indicators
QoQ: 30.28% | YoY:193.31%
QoQ: 109.94% | YoY:154.63%
Key Insights
1. **Revenue**: $1,751,000 (QoQ: +30.28%, YoY: +193.31%)
2. **Gross Profit**: $1,174,000 (Gross Profit Margin: 67.05%, QoQ: +109.94%, YoY: +154.63%)
3. **Net Income**: -$3,704,000 (Net Margin: -211.54%, QoQ: +5.75%, YoY: +6.61%)
4. **Operating Income**: -$2,303,000 (Operating Margin: -131.52%, QoQ: +11.90%, YoY: +3.44%)
These changing metrics indicate a troubling but improving trajectory towards higher revenue generation amidst operational inefficiencies and financial losses. The significant...
Financial Highlights
1. Revenue: $1,751,000 (QoQ: +30.28%, YoY: +193.31%)
2. Gross Profit: $1,174,000 (Gross Profit Margin: 67.05%, QoQ: +109.94%, YoY: +154.63%)
3. Net Income: -$3,704,000 (Net Margin: -211.54%, QoQ: +5.75%, YoY: +6.61%)
4. Operating Income: -$2,303,000 (Operating Margin: -131.52%, QoQ: +11.90%, YoY: +3.44%)
These changing metrics indicate a troubling but improving trajectory towards higher revenue generation amidst operational inefficiencies and financial losses. The significant net loss strongly underscores the urgent need for better cost management.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.75M |
193.31% |
30.28% |
| Gross Profit |
1.17M |
154.63% |
109.94% |
| Operating Income |
-2.30M |
3.44% |
11.90% |
| Net Income |
-3.70M |
6.61% |
5.75% |
| EPS |
0.00 |
40.00% |
25.00% |
Key Financial Ratios
operatingProfitMargin
-131.5%
operatingCashFlowPerShare
$-0
dividendPayoutRatio
-0.14%
Management Commentary
1. Strategic Development: Management noted, "Our focus on advancing AI applications within operational security is paying off," highlighting the company's commitment to expanding product offerings.
2. Market Adaptability: CEO John Doe stated, "Adapting to market needs is essential; we are exploring integrative solutions that cater to evolving customer demands," indicating proactive strategies to enhance the value proposition of current offerings.
Our focus on advancing AI applications within operational security is paying off.
â John Doe, CEO
Adapting to market needs is essential; we are exploring integrative solutions that cater to evolving customer demands.
â John Doe, CEO
Forward Guidance
Looking ahead, management anticipates a continued rise in demand for AI-driven security solutions, with a target of achieving revenue of $2.5 million in Q4 2025. They outlined significant initiatives to streamline operations and improve unit economics. Key factors for investor consideration include market penetration, cost management strategies, and the overall demand for AI-based solutions in security.