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Vection Technologies Ltd. (AU:VR1)
ASX:VR1
Australian Market

Vection Technologies Ltd. (VR1) AI Stock Analysis

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AU:VR1

Vection Technologies Ltd.

(Sydney:VR1)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
AU$0.03
▲(10.00% Upside)
Vection Technologies Ltd. faces significant financial challenges, with high leverage and negative profitability impacting its financial performance score. The technical analysis indicates bearish momentum, further weighing on the stock's outlook. The negative P/E ratio and lack of dividend yield make the stock unattractive from a valuation standpoint. These factors collectively result in a low overall stock score.
Positive Factors
Revenue Growth
The company's revenue growth indicates a positive trend in market demand and product adoption, which can support long-term business expansion and stability.
Product Offering
Vection's focus on VR and AR positions it well in a growing tech sector, offering potential for long-term competitive advantage and market leadership.
Strategic Partnerships
Partnerships enhance product offerings and expand market reach, providing a durable competitive edge and potential for sustained revenue growth.
Negative Factors
High Leverage
Increased leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.
Profitability Challenges
Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and shareholder returns.
Cash Flow Management
Inefficient cash flow management affects the company's ability to fund operations and invest in growth, posing long-term sustainability challenges.

Vection Technologies Ltd. (VR1) vs. iShares MSCI Australia ETF (EWA)

Vection Technologies Ltd. Business Overview & Revenue Model

Company DescriptionVection Technologies Limited, an enterprise-focused company, that helps businesses in bridging the physical and digital worlds in Australia. The company operates in two segments, IT Development and Outsourced Services. It offers Mindesk, a virtual reality design review and real-time rendering in the unreal engine, for CAD and BIM; EnWorks, a solution to support training, manufacturing, and maintenance processes that enhances the work with augmented reality-powered visual assistance; 3DFrame, a no-code enterprise metaverse app for immersive product presentations; configuration that manages product variations for ecommerce, from web to mobile devices; and XRKiosk, which transforms the in-store customer experience with 3D and augmented reality. It serves automotive, naval, furniture, fashion, and education industries for design review, training, remote presentations, retail 3D experience, and 3D e-commerce applications. The company was formerly known as ServTech Global Holdings Limited and changed its name to Vection Technologies Limited in November 2019. Vection Technologies Limited was incorporated in 2016 and is based in Osborne Park, Australia.
How the Company Makes MoneyVection Technologies generates revenue through multiple streams, primarily from the sale of its software licenses and subscription services. The company offers tiered pricing models for its applications, catering to different business sizes and needs. Additionally, Vection Technologies earns money through professional services, including consulting, customization, and training for clients implementing their VR and AR solutions. Strategic partnerships with hardware manufacturers and integration with third-party platforms further enhance their offerings and expand market reach, contributing to their overall earnings. The company may also explore revenue opportunities through government contracts and grants focused on technology adoption in various sectors.

Vection Technologies Ltd. Financial Statement Overview

Summary
Vection Technologies Ltd. is experiencing revenue growth but faces significant challenges in profitability and cash flow management. The high leverage and negative returns on equity highlight financial instability. The company needs to address operational inefficiencies and improve its cash flow generation to enhance its financial health.
Income Statement
45
Neutral
Vection Technologies Ltd. has shown some revenue growth over the years, with a 6.63% increase in the latest year. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has improved slightly but remains low. The consistent negative EBIT and net income suggest ongoing operational challenges.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has increased significantly, indicating higher leverage, which could pose financial risks. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is moderate, but the increasing debt levels are concerning.
Cash Flow
35
Negative
Vection Technologies Ltd. faces cash flow challenges, with negative operating and free cash flows. The free cash flow growth rate is highly volatile, and the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but overall cash flow management needs improvement.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue37.50M37.50M32.83M25.33M17.22M3.25M
Gross Profit10.18M10.18M8.54M-2.85M-1.93M180.14K
EBITDA-207.00K-207.00K-6.36M-9.51M-5.88M-1.56M
Net Income-7.37M-7.37M-9.86M-10.82M-6.68M-2.41M
Balance Sheet
Total Assets72.25M72.25M46.21M42.10M40.20M31.34M
Cash, Cash Equivalents and Short-Term Investments3.10M3.10M7.60M11.36M14.87M7.08M
Total Debt19.30M19.30M9.04M10.68M4.09M4.92M
Total Liabilities60.58M60.58M36.65M22.91M12.23M15.91M
Stockholders Equity12.56M12.56M10.40M19.19M27.98M15.43M
Cash Flow
Free Cash Flow-4.91M-4.91M1.16M-10.56M-3.25M-3.72M
Operating Cash Flow-3.92M-3.92M1.29M-7.48M-1.25M-2.32M
Investing Cash Flow-7.73M-7.73M-3.31M-3.09M-2.02M908.47K
Financing Cash Flow6.11M6.11M-1.90M6.69M11.44M7.20M

Vection Technologies Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.05
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
42.61
Neutral
STOCH
4.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VR1, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VR1.

Vection Technologies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
AU$30.75M-102.50-3.14%2.98%93.55%
48
Neutral
AU$23.75M-3.61-31.01%-3.43%-40.65%
44
Neutral
AU$66.37M-7.91-64.13%-38.03%-11.27%
44
Neutral
AU$33.01M-15.007.32%67.11%
42
Neutral
AU$69.67M-5.00-70.54%9.67%31.03%
37
Underperform
AU$37.38M-0.83-212.09%9.14%65.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VR1
Vection Technologies Ltd.
0.03
0.00
0.00%
AU:AR9
archTIS Ltd.
0.12
0.06
100.00%
AU:VIG
Victor Group Holdings Ltd
0.04
-0.02
-33.33%
AU:AMX
Aerometrex Ltd.
0.26
-0.04
-13.33%
AU:XF1
Xref Ltd
0.15
-0.06
-28.57%
AU:DUB
Dubber Corporation Limited
0.02
0.00
0.00%

Vection Technologies Ltd. Corporate Events

Vection Technologies Director Acquires 20 Million Options
Dec 5, 2025

Vection Technologies Ltd. announced a significant change in the securities interests of its director, Mr. Cameron Petricevic, with the acquisition of 20,000,000 listed options. This change, approved by shareholders at the recent AGM, reflects the company’s strategic moves to align its leadership’s interests with its growth objectives, potentially impacting its market positioning and stakeholder confidence.

Vection Technologies Issues New Options and Shares to Strengthen Market Position
Dec 4, 2025

Vection Technologies Ltd has announced the issuance of 20,000,000 Listed VR1O options and 110,000 fully paid ordinary shares following shareholder approval. This move is part of the company’s strategic financial maneuvers to enhance its market position and operational capabilities, complying with the relevant sections of the Corporations Act, ensuring transparency and adherence to regulatory standards.

Vection Technologies Expands Securities with New Options Issuance
Dec 4, 2025

Vection Technologies Ltd has announced the issuance of 20 million options expiring on November 11, 2027, following approval at their Annual General Meeting. This move is part of their strategy to strengthen their market position and potentially increase stakeholder value by expanding their securities offerings.

Vection Technologies Ltd Issues New Securities on ASX
Dec 4, 2025

Vection Technologies Ltd has announced the issuance of 110,000 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code VR1. This move is part of the company’s ongoing efforts to enhance its financial position and operational capabilities, potentially impacting its market presence and offering new opportunities for stakeholders.

Vection Technologies Announces Successful AGM Resolutions
Nov 27, 2025

Vection Technologies Ltd announced the successful passage of all resolutions at its Annual General Meeting held on November 27, 2025. The resolutions included the adoption of the remuneration report, re-election of directors, approval of a 7.1A mandate, ratification of prior placement shares, and confirmation of the appointment of an auditor. The results reflect strong shareholder support, indicating confidence in the company’s strategic direction and leadership.

Vection Technologies Announces Proposed Securities Issue
Nov 11, 2025

Vection Technologies Ltd has announced a proposed issue of 40 million ordinary fully paid securities, scheduled for November 27, 2026. This move is part of a placement or other type of issue, which could potentially enhance the company’s capital structure and support its growth initiatives, impacting its market positioning and stakeholder interests.

Vection Technologies Expands APAC Presence with Strategic Acquisition of Monogic
Nov 11, 2025

Vection Technologies Ltd has announced its strategic acquisition of Monogic Limited, a digital marketing and communications agency based in Hong Kong and Singapore. This acquisition is part of Vection’s strategy to expand its footprint in the Asia Pacific region, enhancing its capabilities in digital engagement solutions. The acquisition is expected to contribute significantly to Vection’s revenue and EBITDA, providing cross-selling opportunities for its AI and spatial computing products. By integrating Monogic’s expertise in content and brand storytelling, Vection aims to deliver unified customer experiences and unlock new growth verticals. This move positions Vection as a regional leader in digital brand transformation, with potential access to new enterprise customers in sectors such as retail, travel, utilities, and consumer goods.

Vection Technologies Reports Strong Q1 FY26 Performance and Strategic Expansions
Oct 31, 2025

Vection Technologies Ltd has reported a strong performance for the first quarter of FY26, with a notable 60% year-over-year increase in operating cash flow, despite seasonal challenges. The company has secured significant contracts, including a $22 million defense framework agreement, and completed a $21 million capital raise to support growth in defense, healthcare, and industrial sectors. Vection is also expanding its AI portfolio and has announced plans to acquire Digital Experience Labs to strengthen its presence in the Asia-Pacific region, aiming for sustainable profitability and enhanced market positioning.

Vection Technologies Announces 2025 AGM with Digital Access to Materials
Oct 28, 2025

Vection Technologies Ltd has announced its 2025 Annual General Meeting, scheduled for November 27, 2025, in Subiaco, Western Australia. The company is leveraging digital communication by providing meeting materials electronically, encouraging shareholders to access documents online or via email. This approach underscores Vection Technologies’ commitment to modernizing shareholder engagement and streamlining administrative processes, potentially enhancing operational efficiency and stakeholder communication.

Vection Technologies Secures $1.5 Million in New AI Project Orders
Oct 19, 2025

Vection Technologies has secured $1.5 million in new orders for AI-driven enterprise projects across various industries, including agritech, cybersecurity, automotive, real estate, healthcare, and public administration. This development strengthens Vection’s annual recurring revenue and demonstrates its scalable AI business model’s demand across multiple sectors. The orders, comprising software licensing, integration, and service components, highlight Vection’s strong market positioning in data-driven and high-growth markets, particularly in agritech and cybersecurity, which account for over 55% of the total order value.

Vection Technologies Updates Equity Securities Announcement
Oct 15, 2025

Vection Technologies Ltd has issued an update to a previous announcement regarding the issuance, conversion, or payment of unquoted equity securities. The update corrects an error related to the number of options previously referred to, ensuring accurate information for stakeholders and maintaining transparency in its financial disclosures.

Vection Technologies Issues 20 Million Unlisted Options
Oct 15, 2025

Vection Technologies Ltd announced the issuance of 20 million unlisted options with an exercise price of $0.04, set to expire three years from the issue date of October 15, 2025. This strategic move could potentially impact the company’s financial structure and stakeholder interests by increasing its equity base, thereby supporting its growth and operational strategies.

Vection Technologies Strengthens Financial Position with Major Share Issuance
Oct 5, 2025

Vection Technologies Ltd has completed a significant issuance of 350,000,001 fully paid ordinary shares to institutional, sophisticated, and professional investors at a price of A$0.06 per share. This move, conducted under the exemption provisions of the Corporations Act, is expected to strengthen the company’s financial position and support its growth strategies, potentially impacting its market standing and providing new opportunities for stakeholders.

Vection Technologies Ltd Announces Quotation of New Securities on ASX
Oct 5, 2025

Vection Technologies Ltd has announced the quotation of 350,000,001 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code VR1. This move is part of previously announced transactions and is expected to enhance the company’s financial flexibility and market presence, potentially impacting its operations and stakeholder interests positively.

Vection Technologies Secures $7.8M Order in $22M Defense Deal
Oct 5, 2025

Vection Technologies has secured a $7.8 million order under a $22.3 million framework agreement with a NATO-approved partner in the European defense ecosystem. This order enhances Vection’s role in the defense sector, providing multi-year visibility and reinforcing its position as a trusted supplier to NATO and European defense institutions. The agreement marks a significant milestone, transitioning Vection’s defense program into a structured, multi-year delivery model through 2030, and demonstrates the company’s strong track record and growth potential in the defense industry.

Vection Technologies Issues New Shares to Enhance Market Position
Oct 3, 2025

Vection Technologies Ltd has announced the issuance of 27,050,661 fully paid ordinary shares following the conversion of Listed VR1O options and an additional 55,600,000 shares to key management personnel upon achieving market capitalization-linked performance milestones. This move, compliant with the Corporations Act, allows the company to leverage exemptions for on-sale restrictions, potentially enhancing its market position and providing strategic benefits to stakeholders.

Vection Technologies Announces Quotation of New Securities on ASX
Oct 3, 2025

Vection Technologies Ltd has announced the quotation of 17,900,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code VR1. This move is part of the company’s strategy to leverage financial markets for growth and expansion, potentially impacting its market positioning and offering new opportunities for stakeholders.

Vection Technologies Expands Market Presence with New Securities Issuance
Oct 3, 2025

Vection Technologies Ltd has announced the issuance of 55,600,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code VR1. This move is part of an employee incentive scheme and reflects the company’s strategy to enhance its market presence and operational capacity, potentially impacting its growth trajectory and stakeholder engagement.

Vection Technologies Achieves Record Growth in FY25
Oct 1, 2025

Vection Technologies Ltd reported significant financial growth for FY25, driven by defense contracts and enterprise adoption. The company achieved its first positive underlying EBITDA, with revenue increasing to $36.0 million and net assets rising to $13.9 million. The acquisition of The Digital Box (TDB) enhanced Vection’s AI capabilities, contributing to a stronger market position. Strategic advancements included securing major defense contracts and expanding into healthcare, education, and retail sectors. The company’s AI-first approach is expected to drive future growth and profitability.

Vection Technologies Expands Market Presence with New Securities Quotation
Sep 29, 2025

Vection Technologies Ltd has announced the quotation of 9,150,661 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code VR1, effective from September 30, 2025. This move is part of the company’s strategy to leverage convertible securities, potentially enhancing its capital structure and market presence, which could have significant implications for its stakeholders and industry positioning.

Vection Technologies Secures $21M to Boost Growth and Acquires DXLabs
Sep 29, 2025

Vection Technologies Ltd has successfully raised $21 million through a placement to institutional investors, reflecting strong market confidence in its AI-driven strategy and defense sector engagement. The acquisition of Digital Experience Labs Pty Ltd is expected to enhance Vection’s revenue and capabilities in Australia, while the funds raised will support international expansion, debt reduction, and business development in key sectors.

Vection Technologies Initiates Trading Halt for Strategic Announcement
Sep 25, 2025

Vection Technologies Ltd has requested a trading halt on its securities pending an announcement regarding a strategic capital raising and a bolt-on acquisition. This move is expected to impact the company’s operations and market positioning, potentially affecting stakeholders by enhancing its financial and strategic capabilities.

Vection Technologies Expands Market Presence with New Securities Quotation
Sep 12, 2025

Vection Technologies Ltd announced the quotation of 7,831,450 fully paid ordinary securities on the ASX, effective September 12, 2025. This move is part of the company’s strategy to expand its market presence and potentially increase its capital base, which may impact its operations and industry positioning positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 13, 2025