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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 - 5.2)
Rating:42Neutral
Price Target:
AU$0.03
▼(-6.67% Downside)
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 growth in revenue 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
0.03
Negative
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.27
Neutral
STOCH
10.00
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 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 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%
48
Neutral
AU$30.75M-102.50-3.14%2.98%93.55%
48
Neutral
AU$26.12M-3.97-31.01%-3.43%-40.65%
44
Neutral
AU$47.23M-6.20-64.13%-38.03%-11.27%
43
Neutral
AU$29.71M-13.507.32%67.11%
42
Neutral
AU$65.34M-4.83-70.54%9.67%31.03%
40
Underperform
AU$48.63M-1.07-212.09%9.14%65.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VR1
Vection Technologies Ltd.
0.03
>-0.01
-21.62%
AU:AR9
archTIS Ltd.
0.10
0.03
48.48%
AU:VIG
Victor Group Holdings Ltd
0.04
-0.02
-28.07%
AU:AMX
Aerometrex Ltd.
0.28
>-0.01
-3.51%
AU:XF1
Xref Ltd
0.14
-0.07
-32.50%
AU:DUB
Dubber Corporation Limited
0.02
-0.03
-60.00%

Vection Technologies Ltd. Corporate Events

Vection Technologies Turns Cash-Flow Positive as Defence Deals and AI Orders Accelerate
Jan 27, 2026

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
Jan 12, 2026

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
Jan 2, 2026

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
Jan 2, 2026

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
Dec 14, 2025

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
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.

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
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.

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
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.

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
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.

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 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.

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 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.

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