Vection Technologies Ltd. (VR1) AI Stock Analysis

• Market Cap: AU$78.85M
• Dividend Yield: N/A
• Average Volume (3M): 32.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 9.67%
• EPS Growth: 31.03%
• Country: AU
• Employees: 100
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 2,252,999,500
• 10 Day Avg. Volume: 39,281,966
• 30 Day Avg. Volume: 32,001,564
• PEG Ratio: 0.17
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -10.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: AU$0.03 ▼(-3.33% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily weighed down by weak financial performance (ongoing losses, negative cash flows, and increased leverage). Technical indicators add a secondary drag with price below major moving averages and a negative MACD, while valuation offers limited support due to negative earnings and no dividend data.

Positive Factors

Industry-focused product mix

Vection's focus on enterprise XR and 3D visualization for manufacturing, product lifecycle and training targets durable B2B demand. Enterprise use cases tend to have longer sales cycles but higher retention and multi-year deployments, supporting steady contract opportunities and client stickiness over months.

Proprietary software plus services

Owning proprietary software while offering implementation services supports recurring license/maintenance streams and higher-margin services. This hybrid model creates cross-sell and upsell pathways, deeper client relationships and barriers to exit that can sustain revenue and improve lifetime customer value over the medium term.

Modest revenue growth

Reported modest revenue growth indicates commercial traction for Vection's solutions. While growth is not rapid, consistent top-line expansion in niche enterprise segments shows demand validation and provides a foundation to scale sales and improve operating leverage if cost structure and cash conversion improve over subsequent quarters.

Negative Factors

Persistent losses

Sustained negative EBIT and net losses erode equity and limit internal funding for R&D and sales. Continued unprofitability forces reliance on external financing or dilution, and undermines the company's ability to self-fund strategic investments that are needed to scale in competitive enterprise software markets over the next several quarters.

Negative operating and free cash flow

Negative operating and free cash flows indicate the business is not converting revenue into sustainable cash, raising short-term liquidity pressure. Over 2-6 months this forces dependence on financing, limits reinvestment in product and sales, and increases vulnerability if capital access tightens or fundraising costs rise.

Rising leverage

A materially higher debt-to-equity ratio raises fixed obligations and financial risk. Increased leverage reduces balance sheet flexibility, may impose covenant constraints, and amplifies downside if cash flows fail to improve, making strategic investments and M&A more difficult during a multi-quarter recovery.

Vection Technologies Ltd. Business Overview & Revenue Model

Company Description

Vection 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 Money

Vection 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

Weak fundamentals: modest revenue growth (+6.63%) is outweighed by persistent losses (negative EBIT and net income), rising leverage (higher debt-to-equity), negative ROE, and negative operating/free cash flow indicating ongoing operating and liquidity strain.

Income Statement

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

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

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.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	40.78M	37.50M	32.83M	25.33M	17.22M	3.25M
Gross Profit	6.13M	10.18M	8.54M	-2.85M	-1.93M	180.14K
EBITDA	-2.70M	-207.00K	-6.36M	-9.51M	-5.88M	-1.56M
Net Income	-12.55M	-7.37M	-9.86M	-10.82M	-6.68M	-2.41M
Balance Sheet
Total Assets	88.14M	72.25M	46.21M	42.10M	40.20M	31.34M
Cash, Cash Equivalents and Short-Term Investments	13.73M	3.10M	7.60M	11.36M	14.87M	7.08M
Total Debt	18.09M	19.30M	9.04M	10.68M	4.09M	4.92M
Total Liabilities	59.39M	60.58M	36.65M	22.91M	12.23M	15.91M
Stockholders Equity	29.26M	12.56M	10.40M	19.19M	27.98M	15.43M
Cash Flow
Free Cash Flow	-747.00K	-4.91M	1.16M	-10.56M	-3.25M	-3.72M
Operating Cash Flow	521.00K	-3.92M	1.29M	-7.48M	-1.25M	-2.32M
Investing Cash Flow	-10.43M	-7.73M	-3.31M	-3.09M	-2.02M	908.47K
Financing Cash Flow	19.75M	6.11M	-1.90M	6.69M	11.44M	7.20M

Vection Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.49 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VIG	48 Neutral	AU$30.75M	-102.50	-3.14%	―	2.98%	93.55%
AMX	48 Neutral	AU$29.92M	-6.49	-31.01%	―	-3.43%	-40.65%
DUB	44 Neutral	AU$37.82M	-1.44	-212.09%	―	9.14%	65.30%
XF1	43 Neutral	AU$24.21M	-10.38	―	―	7.32%	67.11%
AR9	42 Neutral	AU$42.02M	-3.64	-64.13%	―	-38.03%	-11.27%
VR1	41 Neutral	AU$78.85M	-4.67	-70.54%	―	9.67%	31.03%

Vection Technologies Ltd. Corporate Events

Vection Technologies Hits Record Revenue and Turns EBITDA Positive on Defence-Led Growth

Vection Technologies reported record first-half FY26 revenue of $17.4 million, up 34% year on year, with gross profit doubling to $9.7 million and margins rising to 56% as its mix shifted toward higher-margin software, AI and services. The company delivered its first positive underlying EBITDA of $0.2 million and achieved breakeven operating cash flow, signalling emerging operating leverage despite the seasonally weaker half.

Customer receipts surged 49% to $22.5 million, cash at bank rose to $13.7 million, net assets more than doubled to $28.7 million and deferred revenue climbed 46% to $8.6 million, underscoring strengthened liquidity and revenue visibility. Defence has been cemented as a core growth engine, with $27.7 million in cumulative defence orders, a $22.3 million multi-year framework agreement through 2030 and the company’s largest-ever $7.2 million contract plus a new $2.2 million FEDRA edge AI defence order booked after period end.

The most recent analyst rating on (AU:VR1) stock is a Sell with a A$0.03 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection revenue rises but losses deepen and net tangible assets stay negative

Vection Technologies reported a 29.2% rise in revenue from ordinary activities to $16.23 million for the half year to 31 December 2025, but its net loss after tax widened sharply to $8.92 million, up 139% from the prior corresponding period. The group’s balance sheet shows negative net tangible assets of $16.32 million despite total net assets of $28.75 million, reflecting a heavy weighting toward intangibles and prompting its auditors to flag a material uncertainty related to going concern, while the company again refrained from declaring any dividends.

Net tangible assets per share remained negative at 0.73 cents, compared with 1.16 cents negative a year earlier, even as the number of ordinary shares on issue expanded markedly to about 2.25 billion. The interim financial statements have been reviewed rather than fully audited, and investors are directed to the broader interim and annual reports for detailed operational analysis, underscoring ongoing financial pressure and capital structure challenges for shareholders.

The most recent analyst rating on (AU:VR1) stock is a Sell with a A$0.03 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Turns Cash-Flow Positive as Defence Deals and AI Orders Accelerate

Vection Technologies reported a sharp improvement in its December quarter cash metrics, with customer cash receipts surging to $17.5 million, a roughly 250% increase on the prior quarter and 166% year-on-year, turning net operating cash flow positive at $1.8 million and lifting cash reserves to $14 million after an October capital raising. The company reduced debt by about $4.8 million, secured its first $7.8 million order under a $22.3 million NATO-aligned defence framework—shifting its defence work into a structured, multi-year delivery phase through FY2030—and booked $1.5 million in new AI purchase orders, while reporting a total contracted value of $29.6 million and a three-year pipeline under negotiation of around $59.5 million, underpinning its push to scale its AI+XR platform and integrate recent M&A to support growth in healthcare, retail and defence markets.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Wins $0.5m Follow-On AI Kiosk Order from KIOSK Embedded Systems

Vection Technologies has secured a follow-on purchase order worth about $0.5 million from long-term partner KIOSK Embedded Systems, reinforcing the expansion of its AI kiosk portfolio and its role as a provider of IntegratedXR and AI-enabled solutions. The order, which includes 50 third-generation Wallmount KIOSK units for delivery by the end of 2026, is notable for its roughly 60% annual recurring revenue component derived from prior deployments and is expected to be recognised across FY26 and the first half of FY27, underlining Vection’s growing recurring revenue base, deepening customer relationship with KISE, and strengthening market penetration in Central Europe’s hospitality sector.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Issues New Shares to Creditors Under Disclosure Exemption

Vection Technologies Ltd has issued 426,333 fully paid ordinary shares to certain creditors in lieu of cash payments, as disclosed in an Appendix 2A announcement on 2 January 2026. The company has confirmed that these shares were issued without a prospectus under the Corporations Act but are eligible for on-sale under the section 708A(5) exemption, and that it remains compliant with its financial reporting and continuous disclosure obligations, signalling that there is no additional undisclosed information material to assessing its financial position or the rights attached to the new shares.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Issues New Shares for Creditor Settlement

Vection Technologies Ltd has applied to the ASX for quotation of 426,333 new ordinary fully paid shares issued on 31 December 2025 as part of a creditor settlement, with shares provided in lieu of cash. The move signals the company’s continued use of equity to meet obligations and manage liquidity, which may help preserve cash resources while modestly diluting existing shareholders as these securities come onto the market.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Reports Record Cash Receipts and Strategic Growth

Vection Technologies Ltd reported a record quarter-to-date cash receipt of approximately $14 million, marking a significant increase from previous quarters. The company has achieved a Total Contracted Value of around $27 million and a forward pipeline of $50 million, driven by strong demand across various sectors including Defense, AI, Healthcare, and Retail. The successful deployment of a $21 million capital raise is fueling growth in these sectors, with a focus on expanding revenue and market presence.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Director Acquires 20 Million Options

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.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Issues New Options and Shares to Strengthen Market Position

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.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Expands Securities with New Options Issuance

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.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.

Vection Technologies Ltd Issues New Securities on ASX

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.

The most recent analyst rating on (AU:VR1) stock is a Buy with a A$0.07 price target. To see the full list of analyst forecasts on Vection Technologies Ltd. stock, see the AU:VR1 Stock Forecast page.