Aeeris Reports 9.1% Increase in Annual Recurring Revenue to $3.8M Driven by Strengthened Fixed-Subscription Model

Fixed-Subscription Revenue Growth Signals Enhanced Revenue Quality

Over the past year, Aeeris has restructured its recurring revenue mix, with fixed-subscription contracts now accounting for 91.6% of total ARR, up from 84.3% twelve months prior. This change underscores the company’s strategic shift away from smaller B2B accounts toward enterprise-level contracts that offer greater revenue visibility and financial predictability. Variable revenue streams, mainly from SMS and post-event reporting services, declined from 15.7% to 8.4% of ARR, reflecting fewer extreme weather events in populated areas during FY26.

Fixed-subscription revenue increased 18.6% year-on-year to $3,520,651, significantly outpacing the overall ARR growth of 9.1%. This highlights Aeeris’s success in securing new fixed-price enterprise contracts. Despite a slight moderation in ARR growth in the second half of FY26 after peaking in December 2025, the quality and sustainability of the revenue base have materially improved. Reduced reliance on variable usage-based revenue, which fluctuates with severe weather event frequency and location, provides investors with increased confidence in future revenue and earnings predictability.

Strategic Enterprise Growth Across Six Targeted Industry Verticals

Aeeris is pursuing a focused customer acquisition strategy targeting major sectors investing in weather resilience. The company has concentrated efforts on six key verticals: Insurance, Renewables, Rail & Transport, Construction, Data Centres, and a sixth segment currently being finalized. This approach enables tailored product solutions addressing specific resilience challenges within each industry. During the quarter, Aeeris secured new contracts across these sectors and other large industries, expanding its market footprint and capturing customers with strong recurring revenue potential.

Illustrating deeper customer engagement, an existing insurance client expanded its product usage during the quarter after initially adopting Aeeris’s hail notification services the prior year. This upsell underscores the value of Aeeris’s offerings and the commercial opportunity to increase wallet share within existing accounts. Average Annual Revenue per Customer rose 25.9% year-on-year to $23,730, reflecting successful penetration of higher-value accounts and increased revenue extraction from established customers. The strategic focus on enterprise segments facing measurable weather-related risks and regulatory or operational mandates to adopt resilience solutions positions Aeeris to secure durable, long-term revenue commitments.

Leadership Restructuring and Investment in Capabilities to Accelerate Transformation

In the quarter, Aeeris implemented a leadership restructure to enhance accountability and operational oversight, accelerating its shift from a product-led to customer-centric business. A new Head of People & Capability was appointed to lead people strategy, organizational development, and capability building. The updated reporting structure consolidated expanded leadership roles reporting directly to the Executive Chairman, improving decision-making speed and strategic alignment. The restructuring led to the redundancy of the Chief Operating Officer role, with the Board expressing gratitude to James Harris for his long-term contributions.

Alongside leadership changes, Aeeris increased investments in People and Capability resources to support talent management and skills development, as part of broader one-off strategic investments during the quarter. The company also engaged short-term fintech specialists to advance platform projects, including product enhancements and core system optimizations aimed at improving performance, scalability, and future commercial growth. These initiatives reflect management’s commitment to strengthening foundational people and technology capabilities to sustain long-term competitive advantage.

Extended Cash Runway of Two Years Supported by Improved Burn Rate

Aeeris maintained disciplined cash management, reducing annual net cash outflow sharply to $67,841 in FY26 from $624,884 in FY25—an 89.1% year-on-year improvement. This significant burn rate reduction, despite strategic investments in personnel, processes, and technology, reflects tighter cost control and more efficient capital deployment. Cash on hand was $1,211,820 as of 30 June 2026, down 10.9% quarter-over-quarter from $1,359,359, due to planned strategic investments. Year-on-year cash levels remained stable, decreasing only 5.3%, demonstrating improved operational cash management.

Based on current cash usage, Aeeris has an estimated cash runway of 8.2 quarters, or approximately two years, providing ample flexibility to execute its transformation plan and achieve profitability milestones without urgent funding needs. Quarterly customer cash receipts totaled $1,122,941, with collections remaining strong at 99.2% of accounts receivable under 30 days. This robust collections performance, combined with extended cash runway, supports disciplined investment in growth and operational excellence while maintaining balance sheet strength.

Quarterly Revenue and Technology Enhancements Strengthen Operational Base

Unaudited total revenue for the quarter reached $889,111, reflecting progress in converting ARR commitments into cash flow. Q4 is traditionally the slowest period for severe weather, and 2026 experienced below-average activity, allowing time for strategic technology and process improvements. Aeeris completed upgrades to Hail Reporting, Hail Notification, Embargo Services, and Bushfire Notification, enhancing service reliability and operational capacity ahead of the upcoming severe weather season.

Technology and security remained robust throughout the quarter, with no security incidents or downtime recorded. A key regulatory milestone was achieved with the completion of SMS Sender ID verification ahead of new Australian Communications and Media Authority requirements effective 1 July 2026. This proactive compliance effort underscores management’s focus on regulatory readiness and positions Aeeris to operate smoothly within evolving communications regulations. The lower operational tempo in Q4 provided an ideal window for these foundational enhancements, ensuring readiness for FY27.

Improved Financial Reporting Transparency with Monthly AASB15 Unearned Revenue Adjustments

Starting FY27, Aeeris will enhance financial reporting transparency by posting AASB15 unearned revenue adjustments monthly instead of only at half-year and full-year intervals. This change will reduce large swings in quarterly results that have historically caused earnings volatility and obscured underlying operational performance.

Monthly unearned revenue adjustments will provide shareholders with clearer insights into recurring revenue quality and cash flow trends, eliminating noise in quarterly reporting. This initiative aligns with Aeeris’s broader communication strategy as a customer-centric, enterprise-focused software company where predictable revenue streams are critical to investors. The change reflects management’s commitment to delivering accurate, timely operational and financial performance visibility.

FY27 Outlook Emphasizes Profitability and Market Growth

Entering FY27, Aeeris benefits from a strengthened enterprise revenue foundation, a clear strategic plan in execution, and approximately two years of funding. The company plans further targeted investments to complete its strategic realignment and embed a new operating model, focusing on people capability, technology infrastructure, and market expansion to meet rising demand for weather resilience solutions across key industries.

Corporate objectives are supported by transformation programs aimed at achieving initial FY27 milestones focused on expanding market share, reaching profitability, and enhancing shareholder value. This dual emphasis on near-term growth and a credible profitability path reflects confidence in the business model and enterprise weather intelligence market opportunity. Investors will likely track quarterly ARR trends, customer acquisition in target verticals, and progress toward FY27 profitability as key indicators of transformation success.

Strong Accounts Receivable Collections and Cash Conversion Highlight Customer Quality

Aeeris’s strong customer relationships are evident in cash collection metrics. Collections remained robust during the quarter, with 99.2% of accounts receivable under 30 days, indicating prompt and full payments from enterprise clients. This performance signals high customer satisfaction and financial health, critical for a SaaS business relying on reliable cash conversion. Alongside 9.1% ARR growth and a 25.9% increase in Average Annual Revenue per Customer, strong collections suggest acquisition of higher-quality, creditworthy customers and deeper penetration within existing accounts.

Cash and Accounts Receivable totaled $1,526,838 as of 30 June 2026, representing liquid assets and near-term customer obligations. Although this figure declined 11.4% year-over-year, the reduction reflects seasonal Q4 activity rather than any decline in customer quality or payment behavior. Together, strong collections, ARR growth, and ARPC expansion demonstrate Aeeris’s successful transition to an enterprise-focused, recurring revenue model with sustainable unit economics and improving customer quality.