Guardforce AI posts 6.4% revenue rise but widens net loss in H1 2026

Guardforce AI (NASDAQ: GFAI) has reported unaudited interim results for the six months ended 30 June 2026, recording total revenue of $18.3 million, up 6.4% from $17.2 million in the same period a year earlier. Despite the top-line growth, the company's net loss from continuing operations widened to $3.1 million, compared with $2.0 million in H1 2025, driven primarily by a $1.0 million non-recurring tax-related charge that pushed selling, general and administrative expenses to approximately $5.2 million.

The company operates across two segments. Its legacy secured logistics arm, which runs armoured cash transport and ATM services predominantly in Thailand, accounted for 86.1% of revenue and grew 5.8% year on year, aided by new ATM location contracts with a government-owned Thai bank and an upcountry expansion strategy. The smaller AI, robotics-as-a-service and smart solutions division contributed 13.9% of revenue and grew 10.8%, partly reflecting the March 2026 acquisition of child-education AI firm MGAI Limited.

DVGO and the AI pivot

The company's strategic focus increasingly centres on DeepVoyage Go (DVGO), described as an AI-powered cross-border service intelligence platform targeting the travel industry. By September 2026, Guardforce said DVGO had established service-provider partnerships in Canada, China, and Taiwan. It also launched DVGO Workbuddy, an agentic AI tool designed to help destination-based service providers structure and list their offerings so they become discoverable and matchable on the platform.

The MGAI acquisition added autism-intervention AI modules developed in partnership with Zhongmi Interconnection, extending the subsidiary's scope beyond language rehabilitation to behavioural and social-skills support. Guardforce did not disclose the acquisition price or MGAI's revenue contribution in the release.

Chairwoman and chief executive Lei (Olivia) Wang described the period as one of "disciplined execution," saying the company aimed to "convert these initiatives into measurable commercial and operational progress while building the capabilities required for the Company's longer-term AI for Service opportunity."

Market context and financial position

Guardforce operates in a crowded middle ground: it is neither a pure-play AI software vendor nor a straightforward logistics business. Its pivot narrative, anchoring an established cash-in-transit operation as the funding base for an AI platform play, is a model attempted by a number of listed small-caps seeking to reframe legacy revenues in an AI-friendly light. Investors will note that the AI and smart solutions segment, despite growing faster than the legacy business, still generates less than 14% of total revenue, and that adjusted EBITDA on a non-IFRS basis deteriorated to negative $1.2 million from negative $0.4 million a year earlier.

Cash and cash equivalents stood at $21.3 million at 30 June 2026, down from $24.5 million at the end of 2025, with net cash used in operating activities of $1.6 million in the half. The weighted average share count rose to approximately 29.6 million from 20.0 million a year earlier, reflecting equity issuances; diluted loss per share on a non-IFRS basis was $0.04 against $0.02 in H1 2025.

The company's Thailand-centric logistics base provides recurring revenue stability, with the release citing approximately 97% recurring revenue in that segment, but also concentrates geographic and currency risk. Gross profit was essentially flat, slipping by just over $6,000 year on year to $2.5 million, as higher labour and fuel costs offset the revenue gain. R&D spending held steady at approximately $0.4 million for the half, representing 13.6% of full-year budgeted R&D.

For investors, the near-term signposts will be whether DVGO converts its partnership network into booked revenue, and whether the MGAI acquisition yields material contribution in H2 2026.