Security technology developer Ava Risk Group (ASX:AVA) has reported a softer-than-expected first half for FY26, with revenue landing at $14 million, falling short of its initial $17.0–$18.2 million guidance.
The company attributed the shortfall to timing delays on several key international programs, including US government contracts impacted by earlier administrative shutdowns and infrastructure projects in Australia and the Middle East.
Despite the H1 headwinds, management remains optimistic, maintaining full-year revenue guidance of $37 to $40 million.
The forecast implies a significant second-half recovery, underpinned by a $7.8 million sales backlog and the expected conversion of several large-scale tenders.
High-conviction opportunities in the pipeline include a $2.5 million sovereign border protection program and $3.2 million in energy infrastructure projects, both situated in the Middle East.
To fuel this anticipated growth, Ava Risk Group has secured a strategic investment of up to $12.6 million from Hale Capital via convertible notes and warrants.
Acting CEO Neville Joyce noted that this capital is pivotal for the company's expansion into the US market, which remains its largest addressable opportunity.
"While these delays are frustrating, we remain confident in the underlying demand," Joyce stated, emphasising that the focus is now on fulfilling the delayed orders and executing the robust H2 pipeline.
At the time of reporting, Ava Risk Group's share price was $0.064.