📰 Filing Overview 🗓️

This document is a Form 6-K, which is a report used to announce material, significant corporate events to international investors. It serves as Guardforce AI's release of its full financial results for the year ended December 31, 2025. Readers can expect a detailed look at the company's financial health, its strategic progress in AI, and its plans for 2026.

👉 Why it matters: This report allows investors to see how Guardforce AI is balancing growth in new, high-tech AI solutions with maintaining stable revenue from its traditional logistics business.

🌐 What Guardforce AI Does 🤖

Guardforce AI Co., Ltd. is an AI-driven technology company that provides advanced smart solutions across several key industries. In simple terms, they use artificial intelligence and robotics to automate and improve physical and digital processes for large businesses.

👉 Business Scope: They offer a platform that spans cash management, retail automation, robotics, and Agentic AI. They aim to show that scalable AI applications can drive transformation in areas like travel planning, banking, and healthcare.

🚀 2025 Operational Highlights and Growth 💡

The company focused heavily on expanding its AI capabilities and diversifying its revenue streams in 2025. They are moving beyond traditional logistics services to become a comprehensive tech partner for retailers and other industries.

• AI Agent Launch: Guardforce AI launched its self-developed AI Agent, DeepVoyage Go (“DVGO”), which was publicly available in January 2026. This tool helps users create customized itineraries and converts experiences into shareable digital assets.
  • Why it matters: This move showcases the company's ability to rapidly commercialize complex AI tools, making their technology appealing to diverse sectors like hospitality and banking.
• Strategic Acquisition: In March 2026, the company acquired MGAI, a pioneer in AI-driven solutions specifically for pediatric speech therapy and rehabilitation in Asia.
  • Why it matters: This acquisition signals a strategic bet on high-growth, specialized healthcare AI markets, giving them a validated entry point into a niche sector.
• Smart Solutions Expansion in Thailand: They launched Smart Solutions in Thailand in 2025, deploying the service in over 13 retail stores. They further solidified this with a 2026 partnership with an international chain retailer.
  • Why it matters: This shows their commitment to evolving their services from basic cash management into integrated security and asset management within physical retail environments.
• Secured Logistics Shift: Revenue from their Secured Logistics business increasingly came from retail clients, moving away from a heavy reliance on banks.
  • Why it matters: This diversification enhances the business's stability, proving their services appeal to a broader, more stable customer base beyond traditional financial institutions.

📊 Updated Business Metrics 📐

Starting in 2025, Guardforce AI introduced new business metrics to give investors a clearer picture of the company's evolving revenue sources. They are intentionally separating high-growth AI revenue from stable traditional revenue.

• AI, RaaS, and Smart Solutions: This newly emphasized metric groups all revenue derived from technology upgrades, AI, and Robotics-as-a-Service (RaaS). This category now includes the Smart Cash Solution.
  • Why it matters: By classifying revenue this way, the company guides investors to focus on the high-growth, future-ready parts of their business that rely on technology.
• Legacy Secured Logistics: This metric retains the traditional, established services like cash management and ATM management.
  • Why it matters: Keeping this separated allows analysts to measure the stability and maturity of their core cash handling operations independently from their AI growth.

💰 Financial Performance Highlights 💲

The financial results for the year ended December 31, 2025, show notable shifts in revenue composition and improved operational metrics, despite a continued net loss.

• Total Revenue Growth: Total revenue reached $35,232,701 in 2025, marking an increase of 8.0% compared to the $32,635,191 reported for 2024.
  • Why it matters: Revenue growth suggests the company's various initiatives—both in AI and retail—are successfully capturing market share.
• AI Revenue Momentum: The AI, RaaS, and Smart Solutions metric was 13.4% of total revenue in 2025 and grew at a strong 15.3% during the year. This growth was largely attributed to demand for Smart Cash Solution from retail customers.
  • Why it matters: This significantly higher growth rate compared to the overall company revenue signals that the AI and smart solutions vertical is the primary engine for future expansion.
• Core Logistics Stability: The Legacy Secured Logistics metric accounted for 86.6% of total revenue and grew at 6.9%. This growth was driven by retail-focused service lines in Thailand.
  • Why it matters: The steady, double-digit percentage contribution confirms that the core traditional business is stable and effectively providing reliable recurring revenue.
• Gross Profit & Margin: Gross profit increased by $369,527, reaching $5,285,668. The company reported that its gross margin remained stable year-over-year.
  • Why it matters: A stable gross margin means the company is controlling its costs relative to the revenue it generates, indicating consistent efficiency.

📉 Profitability and Investment Spending 🧪

While the company remains in a net loss position, several key metrics suggest improved financial control and a strong commitment to future technology investment.

• Operating Loss Improvement: Net loss from continuing operations narrowed to $5,286,128, showing a 10.1% improvement compared to the $5,882,647 loss from the same item in 2024.
  • Why it matters: Narrowing the net loss suggests improving operational efficiency, even if the underlying business is still investing heavily for growth.
• Improved EBITDA: Negative EBITDA improved significantly, rising by approximately $753,233 or 23.3%, compared to the negative $3,231,245 in 2024, settling at negative $2,478,012 in 2025.
  • Why it matters: EBITDA is a key measure of operational cash flow before non-cash expenses. The improvement indicates better core operational performance and cost management.
• R&D Commitment: Strategic Research and Development (R&D) investment surged to $837,719 in 2025. This represents a massive increase of $448,831, or 115.4%, compared to the $388,888 spent in 2024.
  • Why it matters: This heavy spending signals the company's aggressive and deep commitment to product innovation, which is crucial for its future viability in the AI space.

🏦 Financial Position and Cash Flow 💧

The company's balance sheet and cash flow statements reveal where its money came from and how it is allocating its capital.

• Stronger Cash Reserves: Cash and cash equivalents increased to $24,545,290 as of December 31, 2025, up from $21,936,422 at the end of 2024.
  • Why it matters: Cash is the lifeblood of a tech company. This increase provides a substantial financial cushion, which the company states is mainly reserved for future AI investment, R&D, and strategic acquisitions.
• Financing Activities: The company generated $3,299,300 in net cash from continuing operations through financing activities in 2025, largely driven by proceeds from the issue of shares ($6,604,094).
  • Why it matters: Raising capital through stock sales is a primary way the company is funding its massive expansion and R&D spending.
• Operational Cash Flow: Net cash used in operating activities for continuing operations was -$1,027,455 in 2025. This figure improved substantially compared to the -$3,421,835 used in 2024.
  • Why it matters: Although still negative, the reduction in cash used in operations shows that the company is spending less cash relative to its revenue base year-over-year.

📣 Management Commentary and Future Strategy 🔮

Leadership provided strong, detailed commentary confirming the strategy of balancing core stability with ambitious AI expansion.

• CEO’s Vision: Chairwoman and Chief Executive Officer Lei (Olivia) Wang stated, “We accelerated the commercialization and revenue growth of our AI and Smart Solutions while maintaining a stable operating and revenue foundation for our Legacy Secured Logistics business.”
  • Why it matters: This summarizes the core message: the company is successfully executing a dual strategy of leveraging stable, recurring cash flow while aggressively growing new AI product lines.
• Deepening AI Investment: Looking ahead, the company intends to deepen its investment in AI, using DVGO as a "core, technology-driven engine for organic growth."
  • Why it matters: This confirms that AI is not just a product line but the central, long-term pillar of the company's growth strategy.
• Growth Pillars for 2026: Management outlined three specific goals for 2026:
  1. Accelerating Smart Solutions expansion across existing retail clients.
  2. Continuously pursuing selective strategic mergers and acquisitions (building on the MGAI purchase).
  3. Enhancing operational efficiency through technology investment and cost optimization.
  • Why it matters: These goals provide a clear roadmap, confirming that M&A and enhanced operational efficiency are key to unlocking "long-term value."

📚 Reporting Nuances and Investor Details ℹ️

The filing included detailed supplemental information regarding how the numbers are calculated, which is critical for deep financial analysis.

• Non-IFRS Accounting Data: The company provides both International Financial Reporting Standards (IFRS) data and non-IFRS adjusted EBITDA metrics. The use of non-IFRS measures is designed to provide greater transparency about core operating results by excluding certain expenses.
  • Why it matters: Investors must be aware that comparing the IFRS net loss (e.g., -$5,286,128) to the Non-IFRS Adjusted EBITDA (e.g., -$940,554) is comparing two different definitions of profit, but the adjusted metric attempts to show the "underlying" operating health.
• Investor Relations Contacts: For further inquiries, investors can reach Skyline Corporate Communications Group, LLC.
  • President Office: (646) 893-5835
  • Email: [email protected]
  • Dedicated Analyst Contact: For Guardforce AI Corporate Communications, Hu Yu is available at [email protected].

🧠 The Analogy

Think of Guardforce AI as a massive, highly skilled handyman service. Its old method was reliable: fixing up existing structures (the "Legacy Secured Logistics") that required steady, predictable paychecks. However, the company realized its future lay in advanced technology. It spent heavily on a brand-new, complex robotic toolkit (the "AI/RaaS" tools) and bought a specialist workshop (the MGAI acquisition). The goal is to transition from being the reliable handymen to being the cutting-edge, high-tech automation provider, which requires massive initial investment but promises exponential future returns.

🧩 Final Takeaway

Guardforce AI is executing a major strategic pivot, aggressively spending capital on advanced AI (evidenced by a 115.4% jump in R&D spending) to drive high-growth revenue in smart solutions. While profitability remains challenged, the significant increase in cash reserves and the diversified revenue mix signal a strong, focused investment strategy for 2026.