Liquidity Risks Linger as Beonic Eyes Growth with New Airport Deals
Beonic Ltd reported a significantly reduced net loss of $3.17 million for FY2025, alongside improved margins and EBITDA profitability, underpinned by a major North African airport contract and a $4.18 million convertible note raise to accelerate growth.
- Net loss narrowed 57% to $3.17 million in FY25
- Revenue declined 8.4% to $22.1 million with recurring revenue growth
- EBITDA profitability achieved at 11.9% with gross margin improving to 77.3%
- Secured largest North African airport contract, expanding global footprint
- Raised over $9 million in capital including $4.18 million convertible notes
Financial Turnaround Amid Revenue Pressure
Beonic Ltd, a global player in IoT-powered data analytics for physical spaces, reported a net loss of $3.17 million for the fiscal year ended June 30, 2025, a marked improvement from a $7.42 million loss in FY2024. Despite an 8.4% decline in total revenue to $22.1 million, the company achieved EBITDA profitability of 11.9% and lifted gross margins to 77.3%, reflecting disciplined cost management and operational efficiencies.
The revenue dip was driven by a 38% reduction in non-recurring sales, partially offset by a 4.9% increase in recurring revenue to $17.3 million, signaling a stabilizing subscription base. The company’s focus on recurring SaaS contracts underpins its strategy to build sustainable, predictable cash flows.
Strategic Contract Wins and Market Expansion
FY25 was highlighted by Beonic’s landmark contract win with a major North African airport authority, marking its strategic entry into the region and the largest contract of its kind there. This deal, alongside multiple contract wins at airports across Australia, New Zealand, the US, and the UK, as well as retail clients like JB Hi-Fi and The Good Guys, underscores Beonic’s growing global footprint and leadership in airport and retail IoT solutions.
Beonic’s platform integrates billions of data points daily from over 11,000 venues worldwide, leveraging AI-driven analytics to optimize people movement and commercial performance. The launch of new products such as Beonic Display, Beonic Vision, and an AI-based Camera Vision product for North America further enhances its competitive positioning.
Capital Raises and Leadership Strengthening
To support its growth trajectory, Beonic completed capital raises exceeding $9 million, including a $5 million private placement, a $0.4 million share purchase plan, and a recent $4.18 million convertible note placement anchored by major shareholder Thorney Investment Group. The convertible notes, accruing 10% interest and convertible at $0.24 per share, are aimed at accelerating product development, refinancing debt, and funding the North African airport project.
Leadership changes have been pivotal, with CEO Billy Tucker, CFO Michael Pearce, and CTO Marc Thompson steering the company through its transformation. The Board, chaired by Michael McConnell since late 2024, has emphasized cost discipline, operational efficiency, and a focused market approach.
Outlook and Risks
Beonic targets cash flow breakeven and EBITDA margins of 15-20% in FY26, driven by pipeline conversion valued at approximately $44 million. The company plans to deepen its presence in airport and retail sectors while maintaining a lean cost structure. However, the financial statements include a going concern note citing net current liabilities and operating cash flow deficits, underscoring liquidity risks despite recent capital injections.
Investors should watch the execution of the North African contract, the impact of new product launches, and the company’s ability to convert its robust sales pipeline into revenue. The convertible note issuance also introduces potential dilution, warranting close monitoring.
Bottom Line?
Beonic’s FY25 results and strategic moves lay a foundation for growth, but execution and liquidity remain key challenges ahead.
Questions in the middle?
- How will Beonic convert its $44 million qualified pipeline into revenue in FY26?
- What impact will the North African airport contract have on future earnings and cash flow?
- How might the convertible note terms affect shareholder dilution and capital structure?
