Guardforce AI (NASDAQ:GFAI), an integrated provider of AI-driven security and smart solutions, reported improved financial results for the fiscal year ended December 31, 2025.
The company’s performance was characterized by a steady expansion of its higher-margin technology segments and a narrowing of operational losses, reflecting a strategic shift toward its "AI-first" business model.
Total revenue for 2025 climbed to $35.23 million, an 8% increase compared to the previous fiscal year.
The growth was spearheaded by the AI, Robot-as-a-Service (RaaS), and Smart Solutions segment, which saw revenue rise 15.3% year-over-year.
While this high-growth unit now accounts for 13.4% of the company's total revenue mix, the Legacy Secured Logistics business remains the primary revenue driver, contributing 86.6% of the total.
The company’s focus on higher-value services also impacted profitability, with gross profit rising 7.5% to $5.29 million.
Notably, Guardforce AI made significant strides in curbing its cash burn; the net loss from continuing operations narrowed to $5.29 million, while negative EBITDA improved to -$2.48 million.
These improvements come despite a massive 115.4% increase in research and development investment, which reached $837,719 as the company accelerated the deployment of its Intelligent Cloud Platform (ICP).
Meanwhile, Guardforce AI maintained a healthy liquidity position to support its 2026 expansion plans, ending the year with $24.55 million in cash and cash equivalents.