ARB IOT (ARBB) H2 2025 earnings summary

Executive summary

• Revenue surged 239% year-over-year to RM197.3 million ($46.8 million) in FY2025, driven by strong sales in IoT vending machines and network hardware.

• Loss for FY2025 widened to RM71.4 million ($16.9 million), mainly due to higher operating expenses, impairments, and amortization.

• Major strategic developments included AI server partnerships, large-scale AI server orders, and expansion into East Malaysia and smart farming.

Financial highlights

• Revenue: RM197.3 million ($46.8 million) in FY2025, up from RM58.2 million ($12.3 million) in FY2024.

• Gross loss: RM8.1 million ($1.9 million) in FY2025, compared to gross profit of RM(20.3) million ($4.3 million) in FY2024.

• Operating expenses: RM65.1 million ($15.4 million) in FY2025, up 39% year-over-year.

• Net loss: RM71.4 million ($16.9 million) in FY2025, compared to RM54.7 million ($11.6 million) loss in FY2024.

• Cash and bank balances: RM32.6 million ($7.7 million) as of June 30, 2025.

Outlook and guidance

• Management expects continued growth in the ASEAN IoT market, with a focus on AI-driven solutions and regional expansion.

• Plans to establish a regional center in Singapore and expand sales offices in major ASEAN cities.

• Anticipates recurring revenue from smart farming deployments and further AI server contracts.