MultiSensor AI(MSAI) - 2025 Q4 - Annual Results

Revenue Performance - Software revenue for the year ended December 31, 2025, was $1.9 million, an increase of 88% compared to $1.0 million for the year ended December 31, 2024[5] - Total revenue for the year ended December 31, 2025, was $5.6 million, a decrease of 25% compared to $7.4 million for the year ended December 31, 2024[5] Net Loss and Financial Improvement - Net loss for the year ended December 31, 2025, was $11.7 million, a decrease of 46% compared to $21.5 million for the year ended December 31, 2024[5] - The company reported a net loss of $11.713 million for the year ended December 31, 2025, compared to a net loss of $21.495 million in 2024, indicating an improvement of approximately 45.5%[13] Cash Position and Financing Activities - The company's cash position grew to $24.4 million as of December 31, 2025, an increase of 459% from $4.4 million as of December 31, 2024[5] - Cash, cash equivalents, and restricted cash equivalents at the end of the period totaled $24.465 million, significantly up from $4.508 million at the end of 2024, marking a 442.5% increase[13] - The company generated $30.872 million from the issuance of common stock and pre-funded warrants, up from $22.784 million in 2024, representing a 35.5% increase in financing activities[13] Operating Expenses and Cash Flow - The total operating expenses for the year ended December 31, 2025, were $14.4 million, a decrease from $21.4 million in 2024[10] - Net cash used in operating activities was $8.020 million, a reduction from $15.567 million in the previous year, reflecting a 48.6% decrease in cash outflow[13] - The company experienced a net cash outflow of $1.607 million from investing activities, an improvement from $2.667 million in 2024, indicating a 39.7% decrease in cash used[13] Asset Growth - The company's total assets increased to $35.5 million as of December 31, 2025, compared to $15.5 million as of December 31, 2024[11] Sensor Deployment and Business Development - Approximately 730 active sensors were connected to the MSAI Connect platform as of December 31, 2025, representing a 59% increase year over year from approximately 460 sensors as of December 31, 2024[5] - The company received over $1.5 million in purchase orders in Q4 2025 from a large global distributor customer, which will increase the number of sensors deployed in their facilities[5] - Initial deployments at Manchester Airport for baggage-handling operations were completed in Q1 2026, following new pilot purchase orders received in Q4 2025[5] - The company began discussions to pilot solutions with several large data center owners and operators, receiving its first purchase order for a pilot implementation shortly after year-end[5] Cost Reductions - Capital expenditures decreased to $1.631 million from $2.667 million in 2024, showing a reduction of 38.8%[13] - The company recorded a $511 thousand inventory impairment in 2025, down from $2.272 million in 2024, indicating a 77.5% decrease[13] - Share-based compensation expenses were $1.665 million, a decrease from $3.382 million in the previous year, reflecting a 50.7% reduction[13] Changes in Financial Liabilities - The company had a change in fair value of convertible notes with no impact in 2025, compared to a $475 thousand impact in 2024, indicating a significant change in financial liabilities[13]