AirIQ reports record recurring revenue growth of 23% in FY26
AirIQ Inc. achieved record recurring revenue growth of 23% to $5,916 for the year ended March 31, 2026, comprising 91% of total revenue. Total revenue increased 17% to $6,498, while operating profit rose 46% to $974. Adjusted net income grew 57% to $318, excluding one-time items. The company repurchased 561,500 shares during the year.
*this image is generated using AI for illustrative purposes only.
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:
| Financial Highlights | In thousands of Canadian Dollars | Year ended 31-Mar-2026 | Year ended 31-Mar-2025 | Year ended 31-Mar-2024 |
|---|---|---|---|---|
| Recurring revenues | $ | 5,916 | 4,800 | 4,368 |
| Hardware and other revenues | $ | 582 | 742 | 1,146 |
| Total revenues | $ | 6,498 | 5,542 | 5,514 |
| Gross profit | $ | 3,887 | 3,396 | 3,354 |
| Gross profit margin % | 60% | 61% | 61% | |
| Expenses (1) | $ | 2,913 | 2,729 | 2,052 |
| EBITDAS (2) | $ | 974 | 667 | 1,302 |
| Other expenses (3) | $ | 870 | 464 | 433 |
| Total net income | $ | 104 | 203 | 869 |
| Income per share, basic | $ | 0.00 | 0.01 | 0.03 |
| Income per share, diluted | $ | 0.00 | 0.01 | 0.03 |
(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.
Will AirIQ continue its share repurchase program beyond June 2026 given the current authorization expires soon?
How does the company plan to sustain the 31% quarterly recurring revenue growth momentum in the next fiscal year?
What specific investments are being made in IoT solutions to further drive the shift away from one-time hardware sales?
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