AirIQ Inc. (TSXV: IQ) reported a 29% year-over-year increase in total revenue for the quarter ended June 30, 2026. The IoT asset management firm posted record recurring revenue and a sharp rise in net income.

Total revenue reached $1,833 thousand, up from $1,422 thousand in the same period last year. Recurring revenue, a key metric for the company’s subscription-based model, grew 25% to $1,653 thousand. This growth was driven by investments in sales, marketing, and rental strategy, according to CEO Mike Robb.

Financial Performance

The company’s top-line growth outpaced its bottom-line expansion in operational terms, though net income saw a significant percentage jump due to a low base in the prior year.

Gross profit increased by 14% to $993 thousand, while operating profit rose modestly by 7% to $223 thousand. The divergence between strong revenue growth and slower operating profit expansion suggests rising operational costs or lower margin realization on new business.

What the Numbers Show

Recurring revenue now constitutes approximately 90% of AirIQ’s total revenue ($1,653k of $1,833k). This high concentration indicates a mature shift toward predictable, subscription-like income streams, reducing reliance on one-time project revenues. However, the 14% gross profit growth lagging behind the 29% revenue growth warrants monitoring for margin pressure.

Net income surged 331% to $69 thousand, but this figure was impacted by non-cash items. CEO Mike Robb noted that net income was negatively affected by $43 thousand due to increased amortization expenses related to acquired customer contracts compared to the prior year period. Without this non-cash charge, the underlying profitability improvement would have been even more pronounced.

Shareholder Returns

AirIQ also announced a Normal Course Issuer Bid (NCIB) filed with the TSX Venture Exchange. The bid, which commenced on June 24, 2025, and ended on June 26, 2026, allowed the company to purchase up to 1,455,829 common shares, representing approximately 5% of issued and outstanding shares. Hampton Securities Limited acted as the broker for the bid.

AirIQ Inc. reported a record 23% increase in recurring revenue to $5,916 for the year ended March 31, 2026, solidifying its shift toward a predictable business model. Recurring revenue accounted for 91% of total revenue, which grew 17% to $6,498. Operating profit surged 46% to $974, driven by the higher recurring revenue base. The company's performance underscores its strategy to prioritize scalable, subscription-based income over one-time hardware sales.

Mike Robb, President and Chief Executive Officer of AirIQ, attributed the growth to the company's focus on IoT-based asset management solutions. He noted that annual recurring revenue surpassed $6.5 million, reflecting strong momentum. Net income for the year was $104, impacted by a one-time provision of $214 related to prior period U.S. state sales taxes and amortization from an acquisition. Excluding these items, adjusted net income rose 57% to $318.

Financial Performance

The company's gross profit increased 14% to $3,887, while the gross profit margin stood at 60%. Expenses rose to $2,913 from $2,729 in the prior year. EBITDAS, defined as earnings before interest and non-cash items, grew to $974 from $667. The following table summarizes the financial highlights for the past three years:

(1) Excludes share-based compensation and foreign exchange. (2) EBITDAS represents earnings before interest and non-cash items: depreciation and amortization, impairment of long-lived assets and share-based compensation. (3) Includes non-cash notional charges such as interest, depreciation and amortization, share-based expense and a one-time gain on deferred tax assets.

Quarterly Highlights

For the fourth quarter, AirIQ achieved record quarterly recurring revenue of $1,606, a 31% increase from $1,228 in the prior year. Total revenue for the quarter jumped 40% to $1,839, and operating profit increased 44% to $240. Adjusted net income for the quarter, excluding the one-time tax provision, rose 62% to $63.

Share Repurchases

During the year, AirIQ repurchased 561,500 common shares for cancellation at an average price of $0.33 per share, totaling $200. The company paid broker fees of approximately $3 for these transactions. Of the shares purchased, 558,500 were cancelled by year-end, with 3,000 pending cancellation. Additionally, 52,500 shares purchased in the prior year were cancelled during the current year, bringing the total cancellations to 611,000 common shares.

The company had renewed its Normal Course Issuer Bid on June 24, 2025, authorizing the purchase of up to 1,455,829 common shares, representing 5% of the then-current issued and outstanding shares. The bid period runs from June 27, 2025, to June 26, 2026.