Executive Summary
In Q4 2025, Artificial Intelligence Technology Solutions Inc (AITX) reported a revenue of $1,853,000, a substantial increase of 115.71% year-over-year, albeit a modest 5.83% increase from the previous quarter. The gross profit margin saw a notable rise to 47.72%, reflecting the company's focus on improving operational efficiency. However, the net income stood at a loss of $7,107,000 due to significant operating expenses, primarily from research and development, totaling $1,565,000. Management acknowledged challenges in scaling operations and emphasized ongoing investments in product development to enhance competitive positioning within the rapid-growth tech industry.
Management's commitment to innovation is underlined by comments during the earnings call, directing attention to their strategy of leveraging advancements in AI and robotics technology. Despite reporting losses, they believe that the foundations being built today can lead to more sustainable profitability in the future as market demand accelerates.
Key Performance Indicators
QoQ: -24.68% | YoY:1 894.16%
QoQ: -169.08% | YoY:-10.46%
Key Insights
Revenue Performance: The company's revenue reached $1,853,000, up 115.71% YoY, indicating a strong growth trajectory, yet with only a modest increase of 5.83% QoQ. The gross profit was reported at $884,309, marking a gross profit margin of 47.72%.
Profitability Analysis: AITX's operating income was a loss of $6,197,000, down 10.46% YoY and a concerning decline of 169.08% QoQ. Net income for the quarter was also negative, resulting in a loss of $7,107,000, primarily driven by escalatin...
Financial Highlights
Revenue Performance: The company's revenue reached $1,853,000, up 115.71% YoY, indicating a strong growth trajectory, yet with only a modest increase of 5.83% QoQ. The gross profit was reported at $884,309, marking a gross profit margin of 47.72%.
Profitability Analysis: AITX's operating income was a loss of $6,197,000, down 10.46% YoY and a concerning decline of 169.08% QoQ. Net income for the quarter was also negative, resulting in a loss of $7,107,000, primarily driven by escalating R&D and general administrative expenses.
Management Commentary: The management pointed towards the necessity of ongoing investment in R&D to cement their market position, stating that "our commitment to innovate within our technology stack is paramount as we aim to capture a larger market share in the upcoming fiscal periods."
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.85M |
115.71% |
5.83% |
| Gross Profit |
884.31K |
1 894.16% |
-24.68% |
| Operating Income |
-6.20M |
-10.46% |
-169.08% |
| Net Income |
-7.11M |
4.31% |
-91.87% |
Management Commentary
Theme: Strategic Vision
- 'Our focus is not only on current growth but establishing a foundation that supports future profitability through innovation and tech advancements.' – CEO.
Theme: Operational Efficiency
- 'We acknowledge the rising operational costs and are working on strategies to optimize our processes and improve margins moving forward.' – CFO.
Our commitment to innovate within our technology stack is paramount as we aim to capture a larger market share in the upcoming fiscal periods.
— CEO
We acknowledge the rising operational costs and are working on strategies to optimize our processes and improve margins moving forward.
— CFO
Forward Guidance
Looking ahead, AITX plans to focus on product development and market expansion. Management aims to reduce operational inefficiencies identified in the current quarter, projecting a potential revenue growth of approximately 20% for Q1 2026 through deployment in new customer segments. Critical factors investors should monitor include the implementation of cost-control measures and the timeline for new product launches.