| Line Item | 2026-02-28 | Y/Y |
|---|---|---|
| Revenue | $7.7M | +26.3% |
| Cost of Revenue | $2.2M | -7.3% |
| Gross Profit | $5.5M | +47.8% |
| R&D Expense | $4.1M | +19.2% |
| SG&A Expense | $12.9M | -4.6% |
| Operating Income | -$11.9M | +14.4% |
| Interest Expense | $79K | +53.7% |
| Net Income | -$14.5M | +23.4% |
| EPS (Basic) | -$0.07 |
| Line Item | 2026-02-28 | Y/Y |
|---|---|---|
| Accounts Receivable | $1.0M | -26.6% |
| Inventory | $1.3M | -16.7% |
| Current Assets | $2.9M | -41.6% |
| Total Assets | $9.3M | -15.3% |
| Current Liabilities | $20.0M | +163.3% |
| Total Liabilities | $62.0M | +2.4% |
| Stockholders' Equity | -$53.2M | -6.6% |
| Line Item | 2026-02-28 | Y/Y |
|---|---|---|
| Operating Cash Flow | -$9.3M | +23.4% |
| Capital Expenditures | $11K | -54.2% |
| Investing Cash Flow | -$13K | +83.9% |
| Financing Cash Flow | $8.6M | -34.0% |
| Free Cash Flow | -$9.4M | +23.4% |
Business Overview
AITX is a vertically integrated developer and operator of AI-driven security and operational automation solutions, designing and deploying stationary devices, mobile autonomous platforms, and software powered by SARA, its proprietary agentic AI platform. The company generates substantially all revenue through recurring monthly subscription contracts under a Solutions-as-a-Service model while retaining hardware ownership, with approximately 1,000 devices deployed across the United States and Canada. Key developments in fiscal 2026 include commercial deployment of ROAMEO mobile units beginning in May 2026, expansion of the authorized dealer network to over 100 dealers, and advancement of SARA ecosystem partnerships including integration with Immix monitoring software.
Segment Performance
RAD-I (Stationary Solutions) is the largest revenue contributor and most mature product line with recurring subscription deployments; management indicates it could support positive cash flow on a standalone basis but company continues investing in other segments. RAD-M (Mobile) commenced commercial deployment of two ROAMEO units in May 2026 after approximately $20 million in cumulative development investment; these are structured at substantially higher monthly price points than stationary products with management expecting RAD-M to eventually surpass RAD-I revenue. RAD-G (Agentic AI) has generated substantial industry interest and a significant sales pipeline according to management, with SARA receiving multiple SIA awards and integration partnerships underway. RAD-R (Residential) generated immaterial revenue in fiscal 2026, substantially below expectations due to structural B2C go-to-market challenges requiring higher consumer marketing spend than the company was prepared to commit.
Forward Guidance
Management expects that 'based on the current sales pipeline and assuming successful execution of the ROAMEO production ramp, RAD-M will surpass RAD-I's monthly recurring revenue contribution at some point' and believes 'the mobile business has a higher revenue ceiling than stationary solutions.' The company expects gross margin will 'exceed 75%' on subscription deployments and 'exceed 50%' on outright sales. Management states 'RAD-G, based on its developing SARA solution, has generated substantial industry interest' and 'has high expectations for substantial revenue generation in this subsidiary.' The company anticipates 'establishing an additional subsidiary, Robotic Assistance Devices Europe (RAD Europe), during fiscal 2027' and expects to 'introduce additional stationary solutions during fiscal year 2027.' However, these statements are qualified: 'This is a forward-looking statement; actual results may differ materially, and the timing and magnitude of RAD-M's revenue contribution will depend on a range of factors including production capacity, customer adoption, and the operational performance of deployed units.'
| — |
| EPS (Diluted) | -$0.07 | — |
Key Risk Factors
The company has a history of net losses, negative operating cash flows, and accumulated deficits, with shares characterized as highly speculative and investors potentially losing substantial portions of their investment. Key risks include dependence on successful production ramp and customer adoption of ROAMEO mobile units, which represent a substantial future revenue expectation; execution risks on forward-looking statements regarding RAD-M surpassing RAD-I revenue and RAD-G generating substantial revenue; reliance on a developing supply chain and third-party components with concentration risk; and the company's limited operating history with its AI platform in commercial deployment at scale.