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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

Vection Technologies Ltd.

(Sydney:VR1)

Rating:46Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall score reflects strong revenue growth offset by persistent profitability issues and operational inefficiencies. The stock shows positive momentum, but a high RSI suggests it may be overbought. Valuation remains a concern due to a negative P/E ratio, highlighting the need for improved financial performance.

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

Vection Technologies Ltd. Business Overview & Revenue Model

Company DescriptionVection Technologies Ltd. (VR1) is an innovative technology company specializing in the integration of virtual reality (VR), augmented reality (AR), and other immersive technologies into business processes. It serves various sectors including manufacturing, architecture, and healthcare by offering solutions that enhance business productivity and efficiency. Vection Technologies provides a suite of digital transformation tools designed to optimize workflows and improve collaboration through immersive experiences.
How the Company Makes MoneyVection Technologies Ltd. generates revenue primarily through the sale of its software solutions and services that incorporate virtual and augmented reality technologies. The company offers a subscription-based model for its software products, enabling businesses to integrate VR and AR into their operations. Key revenue streams include licensing fees from their proprietary software platforms, custom development projects for clients, and ongoing support and maintenance services. Additionally, Vection Technologies may engage in strategic partnerships with other tech firms and industries to expand its reach and product offerings, thereby contributing to its earnings.

Vection Technologies Ltd. Financial Statement Overview

Summary
Vection Technologies Ltd. demonstrates impressive revenue growth, but persistent losses and negative profitability metrics highlight ongoing operational challenges. The balance sheet shows moderate leverage and a stable equity base, yet declining equity is concerning. Cash flow improvements are notable, but sustainability remains crucial. Overall, while growth prospects are strong, achieving profitability and improving margins are key areas for improvement.
Income Statement
45
Neutral
The company has shown significant revenue growth from $2.54M in 2020 to $33.71M in 2024, indicating a strong upward trajectory. However, profitability remains a concern with consistent negative net income, as reflected in a net loss of $9.86M for 2024. The gross profit margin improved to 8.01% in 2024, up from negative margins in previous years, but EBIT and EBITDA margins remain negative, highlighting operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a relatively stable equity base with stockholders' equity at $10.40M in 2024. The debt-to-equity ratio stands at 0.87, indicating moderate leverage, although a decline from previous years' higher ratios. The equity ratio of 22.51% suggests a balanced capital structure, but the reduction in equity over the years poses a potential risk.
Cash Flow
55
Neutral
The cash flow position has improved with a positive operating cash flow of $1.29M in 2024, compared to negative cash flows in prior years. Free cash flow turned positive in 2024 to $1.16M, indicating better cash management. The operating cash flow to net income ratio is positive, despite being driven by non-operating income, suggesting better cash conversion.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue35.17M32.83M25.33M17.22M3.08M2.55M
Gross Profit5.57M8.54M-2.85M-1.93M180.14K425.75K
EBITDA-2.07M-6.36M-9.51M-5.88M-1.56M-591.48K
Net Income-4.56M-9.86M-10.82M-6.68M-2.41M-1.17M
Balance Sheet
Total Assets40.08M46.21M42.10M40.20M31.34M16.23M
Cash, Cash Equivalents and Short-Term Investments5.19M7.60M11.36M14.87M7.08M1.58M
Total Debt9.99M9.04M10.68M4.09M4.92M1.43M
Total Liabilities29.13M36.65M22.91M12.23M15.91M10.17M
Stockholders Equity11.74M10.40M19.19M27.98M15.43M6.06M
Cash Flow
Free Cash Flow1.10M1.16M-10.56M-3.25M-3.72M-1.14M
Operating Cash Flow678.00K1.29M-7.48M-1.25M-2.32M-312.53K
Investing Cash Flow-4.69M-3.31M-3.09M-2.02M908.47K273.36K
Financing Cash Flow1.69M-1.90M6.69M11.44M7.20M776.10K

Vection Technologies Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.04
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Positive
Market Momentum
MACD
<0.01
Negative
RSI
95.50
Negative
STOCH
107.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VR1, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 95.50 is Negative, neither overbought nor oversold. The STOCH value of 107.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VR1.

Vection Technologies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
AUVIG
56
Neutral
AU$50.22M-13.67%-18.79%-28.57%
AUAR9
55
Neutral
AU$57.85M-45.31%-28.80%32.87%
AUXF1
50
Neutral
AU$35.21M
0.40%66.36%
AUVR1
46
Neutral
AU$65.39M-44.01%21.55%64.76%
AUAMX
44
Neutral
AU$21.37M-24.21%-11.35%-49.13%
AUDUB
38
Underperform
AU$47.22M-131.93%15.31%61.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VR1
Vection Technologies Ltd.
0.04
0.02
100.00%
AU:AR9
archTIS Ltd.
0.20
0.12
150.00%
AU:VIG
Victor Group Holdings Ltd
0.08
0.05
166.67%
AU:AMX
Aerometrex Ltd.
0.22
-0.23
-51.11%
AU:XF1
Xref Ltd
0.16
-0.02
-11.11%
AU:DUB
Dubber Corporation Limited
0.02
-0.02
-50.00%

Vection Technologies Ltd. Corporate Events

Vection Technologies Appoints New Auditor
Jul 4, 2025

Vection Technologies Ltd has appointed Hall Chadwick WA Audit Pty Ltd as its new auditor following the resignation of RSM Australia Partners. This change, approved by ASIC, aligns with the company’s audit partner rotation and tendering process. The appointment will be confirmed at the next General Meeting, reflecting Vection’s commitment to maintaining robust financial oversight.

Vection Technologies Secures $4.4 Million Defense Contract
Jun 30, 2025

Vection Technologies Ltd has secured a $4.4 million supply order from a top global defense contractor, following a successful pilot program. This order, which contributes to a cumulative revenue of approximately $10 million from the customer, marks a significant step in Vection’s involvement in the NATO Tempest production chain, validating its INTEGRATEDXR platform for real-time, data-driven defense operations. The company anticipates further contracts worth $21 million between FY26 and FY30, highlighting the growing demand for AI-powered monitoring solutions amid increasing geopolitical tensions.

Vection Technologies Secures $2.6 Million AI Safety Compliance Deal
Jun 23, 2025

Vection Technologies Ltd has signed a $2.6 million agreement with Area12 Consulting to co-develop an AI-driven safety compliance platform called SAFE-XR for an industrial client in Italy. This collaboration, which builds on a previous $0.5 million annual software agreement, highlights Vection’s growing capabilities in AI and XR solutions for industrial safety and automation. The project strengthens Vection’s position in AI-driven compliance amid increasing global regulations, offering a scalable solution that integrates smart glasses for hands-free inspections and real-time voice interaction. Revenue from the agreement will be recognized in phased milestones throughout FY26, with a three-year support term.

Vection Technologies Announces Change in Director’s Securities
Jun 20, 2025

Vection Technologies Ltd. announced a change in the director’s interest, specifically the lapse of 4,000,000 performance rights held by Mr. Gianmarco Biagi. This change reflects a strategic adjustment in the director’s securities, potentially impacting the company’s governance and signaling a shift in focus or strategy to stakeholders.

Vection Technologies Issues 200,000 New Shares Under VR1O Options
Jun 18, 2025

Vection Technologies Ltd announced the issuance of 200,000 fully paid ordinary shares following the conversion of VR1O options, in compliance with section 708A(5) of the Corporations Act 2001. This move allows the company to issue shares without disclosure, aligning with regulatory requirements, and potentially impacts its financial positioning and shareholder value.

Vection Technologies to Quote 200,000 New Securities on ASX
Jun 18, 2025

Vection Technologies Ltd has announced the quotation of 200,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code VR1. This move indicates the company’s ongoing efforts to enhance its market presence and potentially increase its capital base, which could have implications for its operational capabilities and stakeholder interests.

Vection Technologies Announces Cessation of Performance Rights
Jun 18, 2025

Vection Technologies Ltd announced the cessation of 23,295,611 performance rights due to the lapse of conditional rights, as the conditions were not met or have become incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s future financial strategies and market positioning.

Vection Technologies Partners with Rider Srl for $520K AI Agritech Initiative
Jun 16, 2025

Vection Technologies Ltd has entered into a $520,000 strategic partnership with Rider Srl, part of the Procmatech Group, to co-develop the ACRobot® modular robotics platform for open-field agriculture. This collaboration aims to combine Vection’s AI capabilities with Rider’s mechanical engineering expertise to create a versatile robotic system for precision farming, which is projected to become a multi-billion-dollar market by 2030. The ACRobot® platform is designed to enhance farming efficiency and sustainability and can be adapted for use in other sectors such as logistics and healthcare, addressing global demands for AI-driven automation.

Vection Technologies Reports Strong Revenue Growth and Strategic Initiatives
Jun 10, 2025

Vection Technologies Ltd has announced significant growth with a 60% increase in revenues, driven by its proprietary software platform, INTEGRATEDXR, which integrates multiple applications into client operations. The company is focused on earnings-additive acquisitions and has implemented internal cost efficiency and debt reduction initiatives, positioning itself as a leader in the growing market of Spatial Computing and AI.

Vection Technologies Announces Investor Webinar to Address Digital Business Challenges
Jun 3, 2025

Vection Technologies Ltd has announced an investor webinar scheduled for June 10, where Managing Director and CEO Gianmarco Biagi will discuss the company’s strategies for addressing real-world business challenges in the digital realm. This event offers shareholders and potential investors an opportunity to engage with the company through a moderated Q&A session, reflecting Vection Technologies’ commitment to transparency and stakeholder engagement.

Vection Technologies Secures $1 Million Defense Sector Contract
Jun 1, 2025

Vection Technologies Ltd has secured a $1 million order from a client in the defense sector, highlighting a growing collaboration. The contract involves a secure ICT solution to enhance cyber and data protection for national security intelligence, with deployment starting immediately. This deal strengthens Vection’s position in the defense, space, military, and law enforcement segments, paving the way for future scalable projects.

Vection Technologies Secures $0.5M AI Partnership with Area 12 Consulting
May 11, 2025

Vection Technologies Ltd has announced a strategic partnership with Area 12 Consulting, securing a $0.5 million annual commitment for its Algho AI software licenses and related services. This partnership not only guarantees a consistent revenue stream but also expands Vection’s presence in the generative AI market by offering advanced conversational and process automation tools to enterprises. The collaboration is a significant step in Vection’s mission to integrate AI into business practices, enhancing its position as a key player in the generative AI field.

Vection Technologies Completes Significant Share and Options Issuance
May 5, 2025

Vection Technologies Ltd has completed the issuance of 236,666,668 fully paid ordinary shares and 128,983,334 VR1O listed options as part of a placement announced on April 29, 2025. This issuance was conducted under the company’s available capacity according to Listing Rule 7.1 and 7.1A, allowing the shares and options to be sold without disclosure under specific sections of the Corporations Act. This move is expected to enhance the company’s financial flexibility and market positioning.

Vection Technologies Announces New Securities Quotation on ASX
May 5, 2025

Vection Technologies Ltd has announced the application for quotation of new securities on the ASX, including 236,666,668 ordinary fully paid shares and 128,983,334 options expiring in November 2027. This move is part of previously announced transactions and may enhance the company’s market presence and liquidity, potentially impacting its stakeholders positively.

Vection Technologies Secures $1.2M Grant for Digital-Twin Project in Food & Beverage Sector
May 5, 2025

Vection Technologies Ltd has been awarded a $1.2 million grant to lead Project ADDICTA, a digital-twin initiative in the food and beverage industry funded by Italy’s National Recovery and Resilience Plan. The project aims to enhance factory digitalization by using sophisticated sensors and Vection’s INTEGRATEDXR stack to provide real-time product intelligence, reducing waste and increasing efficiency. The project will be completed over eight months, with the platform eventually offered as a subscription service to small and mid-sized manufacturers, potentially expanding Vection’s market influence and creating new intellectual property without financial outlay.

Vection Technologies Announces Proposed Securities Issue
Apr 29, 2025

Vection Technologies Ltd announced a proposed issue of securities, including 128,983,333 options expiring in 2027 and 236,666,667 fully paid ordinary shares, with the issue date set for May 6, 2025. This move is likely aimed at raising capital to support the company’s growth and expansion efforts, potentially enhancing its market position and providing value to stakeholders.

Vection Technologies Surpasses Capital Raise Target Following Strong Q3 Performance
Apr 29, 2025

Vection Technologies announced a successful $3.55 million capital raise, exceeding its initial target of $2 million, following strong Q3 results. This funding highlights investor confidence in Vection’s AI-driven recurring-revenue strategy and will be used to accelerate AI-driven spatial computing efforts and market expansion in defense, industrial, and telecom sectors. The company reported a significant increase in cash receipts and recurring revenue, showcasing the scalability of its business model.

Vection Technologies Reports Strong Q3 FY25 Performance and Strategic Growth
Apr 28, 2025

Vection Technologies Ltd reported strong financial performance in Q3 FY25, with significant revenue growth and positive operating cash flow. The company achieved a 92% increase in cash receipts and improved its recurring revenue to 40% of total revenue. Notable achievements include QuestIT being recognized by Gartner, securing defense contracts, and expanding global distribution. The company also strengthened its board and continues to explore growth opportunities, positioning itself well for future expansion.

Vection Technologies Initiates Trading Halt for Capital Raising
Apr 28, 2025

Vection Technologies Ltd has requested a trading halt on its securities pending an announcement regarding a capital raising initiative. This move is aimed at supporting the expansion of its AI business and developing new markets, which could significantly impact its operations and market positioning.

Vection Technologies Boosts Recurring Revenue with New AI Contracts
Apr 8, 2025

Vection Technologies Ltd has announced that its recently acquired generative AI specialist, The Digital Box S.p.A. (TDB), has secured an additional $0.6 million in annual recurring contracts, bringing TDB’s total recurring revenue to $1.3 million. This achievement underscores the market’s confidence in Vection’s generative AI products and highlights the company’s successful strategy of integrating advanced AI with extended reality to meet digital transformation needs across various industries. The new contracts involve 14 clients, including notable agreements with NexyLab and Sella GenAI, and demonstrate the adaptability of Vection’s integrated solutions.

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: Jul 05, 2025