AITX Files Q3 FY 2026 10-Q Highlighting Stronger Financial Execution

Core Insights - The company reported a 34% year-over-year revenue growth, reaching approximately $5.75 million for the first nine months of fiscal 2026, with gross profit increasing by 36% to nearly $3.9 million, indicating improved revenue quality and operational execution [1][3][6]. Financial Highlights - Revenue Growth: Revenue for the first nine months of fiscal 2026 was approximately $5.75 million, a 34% increase compared to the same period last year [3]. - Gross Profit Growth: Gross profit increased by 36% to nearly $3.9 million, outpacing revenue growth and reflecting better revenue quality and cost discipline [3]. - Operating Cash Flow: Cash used in operating activities improved by approximately $1.4 million year over year, indicating tighter operational controls [4]. - Inventory Efficiency: Inventory turnover increased to 1.38 times from 0.71 times in the prior year, showing faster product movement and efficient working capital management [4]. - Debt Reduction: The company reduced total debt by approximately $5.0 million, lowering outstanding debt from about $32.8 million to $27.8 million [5]. Operational and Strategic Updates - The company undertook targeted actions to refine spending priorities and streamline operations, contributing to improved gross profit performance and reduced working capital requirements [7][8]. - Management's focus on disciplined execution and financial control is evident in the operational improvements reflected in the Q3 financial results [6]. Outlook - The company expects to maintain positive operational momentum through the remainder of fiscal year 2026, focusing on expanding its installed base and improving production and deployment efficiency [9]. - Management aims to achieve operational positive cash flow around May 2026 while maintaining a disciplined approach to growth and cost control [9]. About the Company - Artificial Intelligence Technology Solutions, Inc. (AITX) is a leader in AI-driven security and productivity solutions, aiming to redefine the $50 billion security and guarding services industry with innovative solutions that provide significant cost savings [11]. - The company’s primary subsidiary, Robotic Assistance Devices, Inc. (RAD), offers a suite of robotic solutions designed to complement or replace human personnel in security roles, achieving cost savings of 35%-80% compared to traditional manned security [11]. Additional Information - The company has a prospective sales pipeline of over 35 Fortune 500 companies, indicating strong potential for future business growth [14]. - AITX's operations have been validated through a successful SOC 2 Type 2 audit, enhancing its credibility with enterprise and government clients [12].