Guardforce AI Co., Limited Q4 FY2025 earnings call

• Business highlights in 2025: Launched self - developed beta version AI agent Deep Voyage Go (BVGo) in April 2025, extended traditional cash management service into in - store assets with smart retail solution in July 2025, deployed smart retail solution at 13 retail stores in Thailand by year - end, signed partnership to deploy at additional locations of international chain retailers in February 2026, and acquired Manage AI in March 2026 to expand AI implementation into education and healthcare sectors. - Legacy security business performed well in 2025, increasing revenue contribution by about 7% compared to 2024, with client base diversifying from bank - dominated to a mix including retailers and commercial entities. - Updated business metrics: Divided into technology - driven business (including AI robotics as a service and smart solutions) and service business (legacy secured logistics). Technology - driven business has AI - related agents as intelligent interfaces and full - stack architecture in development. Service business has stable, contracted, and core recurring revenue with growth managed through operational discipline.

In 2025, total revenue increased 8% to $35.2 million compared to $32.6 million in 2024. Legacy Secure Logistics accounted for 86.6% of total revenue, with year - on - year growth of 6.9% and over 99% recurring revenue, driven by expansion of retail - focused service lines in Thailand. AI, ROS, and smart solution accounted for 13.4% of total revenue, with a robust growth of 15.3% during the year, mainly supported by increased demand from retail customers for the smart cash solution product.

• Continue to deepen investment in AI by advancing the capabilities of DVGO, seeing it as a modular agent - based AI agent extendable across multiple industries. - Accelerate cross - selling of smart solution services across existing retail client base to evolve from primary service delivery providers to integrated multiple solutions partners, aiming to unlock significant incremental revenue in 2026 and beyond, drive sustainable cost optimization, and improve margins and operating income across business segments.

Q: Can you provide a breakdown of AI - driven revenue versus the legacy cash secure logistic revenue for the fiscal year 2025 and also for the second half of 2025?

A: Legacy Secure Logistics revenue was approximately $13.5 million, accounting for 86.6% of total revenue in 2025, with year - on - year growth of 6.9% and over 99% recurring revenue, driven by expansion of retail - focused service lines in Thailand. AI RAS and Smart Solutions revenue was approximately $4.7 million, accounting for 13.4% of total revenue in 2025, with growth of 15.3% during the year. In the second half of 2025, there was a clear acceleration in AI and smart solution deployments in Thailand, with the mix gradually shifting toward high - margin, technology - driven income streams.

Q: Why do you think the company began to categorize the business into AI - driven solutions versus the legacy services starting in 2025 and how should investors interpret this shift?

A: This reclassification reflects a fundamental shift from being a service - driven company to a technology - driven solution provider, with services as the foundation and AI, robotics, and software as the growth engine. The technology - driven solution segment has a higher growth rate, and separating AI - driven revenue from legacy services gives investors clearer visibility into the transition, showing growth rate and long - term scalability, and aligning reporting with internal business management and future position as an AI and RAS - enabled platform.

Q: Can you elaborate on the recent business developments, including like new partnership or deployments since our last earnings call?

A: Since the last earnings call, strengthened AI capability in vertical use purpose by acquiring MGAI and working on integrating this capability in existing solutions, and D - LEAGUE continues to evolve as part of AI - driven product strategy with focus on enhancing user experience and interaction, aligning development with broader platform framework for sustainable growth.

Q: What actions is the management taking to achieve the NASDAQ compliance And how does the share - by - buy program factor into the strategy?

A: Maintaining NASDAQ compliance is a priority, with focus on executing growth strategy, particularly in AI and smart solutions, to drive long - term value. The Share Buyback Program provides additional flexibility to support the stock when appropriate, viewed as a tool, not a core strategy, with primary objective remaining to improve business performance and investor confidence through execution.

Q: How should investors think about the ICP 3.0's value in the overall Golf with AI platform strategy, and how do we measure the progress at this stage?

A: ICP 3.0 is a foundational platform connecting different business lines, supporting MGAI in the future. It is in early stage of full rollout, seeing increasing adoption among enterprise clients, with focus on integration steps, number of modules used, embedding in client's operations, and recurring revenue, expected to drive higher contract value and stronger client retention as a key driver of platform - based revenue model.