How icetana AI’s SoftBank Partnership Sparked a 21% ARR Surge

Strong ARR Growth Fueled by Strategic Partnership

icetana Limited (ASX – ICE), a Perth-based developer of self-learning security AI software, has delivered its strongest quarterly growth to date in Q1 FY26. The company’s annualised recurring revenue (ARR) surged 21% quarter-on-quarter to $2.3 million, marking a 32% increase year-on-year. This momentum is largely attributed to the strategic partnership with SoftBank Robotics, which includes a three-year research and development agreement and SoftBank’s inaugural sales in the Japanese market.

CEO Kevin Brown highlighted the significance of this partnership, noting that it has been instrumental in driving revenue growth and expanding icetana’s footprint across the Asia-Pacific region. The collaboration has also opened doors to new customers, including Millennium Services Group, a SoftBank-controlled security and cleaning services operator, which secured icetana’s largest Australian contract to date, a $376,000 five-year deal with a Queensland shopping centre.

Revenue Growth and Market Expansion

Total quarterly revenue rose 22% to $600,000, supported by recurring revenue, paid proof-of-concept projects, and hardware sales. Despite this revenue growth, cash receipts from customers declined to $390,000, down 69% from the previous quarter, reflecting a lower proportion of renewing customers in the period. This contributed to a net operating cash outflow of $1.13 million, a significant increase from $135,000 in the prior quarter, reducing the company’s cash balance to $2.7 million.

icetana’s sales and marketing efforts have been robust, with participation in major industry events across Australia, the USA, and the Middle East enhancing brand visibility. The company also expanded its business development team in the Asia-Pacific region to accelerate pipeline growth and deepen partner engagement, particularly with SoftBank Robotics.

Product Innovation and Integration Advances

On the product front, icetana AI has made notable advancements in its video analytics platform. Key developments include enhanced integration with Genetec’s Security Center, robotic automation capabilities enabling SoftBank’s autonomous robots to act on AI event data in real time, and improved event filtering for more precise notifications. Additionally, a new dark site Triage Agent feature ensures continuous monitoring even in low-connectivity environments.

These innovations reinforce icetana’s position in the smart security and operational intelligence markets, supporting scalable deployments across diverse sectors such as retail, hospitality, and public safety.

Lingering Challenges and Outlook

While growth is encouraging, some challenges remain. The company’s net ARR retention dipped slightly to 98%, influenced by pricing standardisation in Japan. Moreover, a previously announced $1.7 million Middle East safe city project remains delayed with uncertain timing, adding a layer of risk to future revenue forecasts.

Looking ahead, icetana AI aims to build on its current momentum by deepening partnerships, expanding customer contracts, and continuing product innovation. The company’s ability to convert strategic relationships into sustainable revenue streams will be critical as it navigates cash flow pressures and market expansion.