Guardforce AI Reports Interim Financial Results for the First Half of 2026
Revenue and AI-driven solutions grew in the first half of 2026, but higher costs and one-time tax charges deepened Guardforce AI’s net loss.
Rhea-AI Summary
Guardforce AI (GFAI) reported unaudited interim results for 1H 2026, with total revenue rising 6.4% year over year to $18.27 million.
The AI, RaaS & Smart Solutions metric grew 10.8% and represented 13.9% of revenue, helped by higher retail demand and the March 2026 acquisition of MGAI. Legacy Secured Logistics, contributing 86.1% of revenue, grew 5.8%, supported by retail-focused services, expansion in Thailand’s upcountry areas and favorable FX. Recurring revenue in secured logistics remained around 97%.
Gross profit was broadly flat at $2.51 million as higher labor and fuel costs offset revenue growth. SG&A rose about $1.0 million to $5.19 million, mainly from non-recurring tax-related charges, widening net loss from continuing operations to $3.12 million from $2.04 million. Cash and cash equivalents declined to $21.25 million at June 30, 2026, from $24.55 million at year-end 2025.
Positive
- Total revenue increased 6.4% YoY to $18.27 million in 1H 2026
- AI, RaaS & Smart Solutions metric grew 10.8% and reached 13.9% of revenue
- Legacy Secured Logistics revenue grew 5.8% YoY and comprised 86.1% of revenue
- Recurring revenue in Legacy Secured Logistics remained approximately 97%
- Cash and cash equivalents stood at $21.25 million as of June 30, 2026
- Equity attributable to shareholders totaled $30.63 million versus liabilities of $13.64 million
Negative
- Gross profit dipped 0.2% YoY to $2.51 million despite higher revenue
- Net loss from continuing operations widened to $3.12 million from $2.04 million
- SG&A expenses rose about $1.0 million to $5.19 million, driven by tax-related charges
- Operating cash outflow from continuing operations increased to $1.56 million from $0.83 million
- Cash and cash equivalents declined by about $3.29 million from December 31, 2025
- Shares outstanding increased from 24.35 million to 31.35 million, indicating dilution
News Explained
At June 30, 2026, cash and cash equivalents were $21,250,627 after first-half operating activities used $1,558,127.
Guardforce AI reported unaudited interim results for the six months ended
During the first half, investing activities used
Key Figures
- Total revenue growth
- 6.4%
- 1H 2026 vs. 1H 2025
- AI, RaaS & Smart Solutions growth
- 10.8%
- 1H 2026 vs. 1H 2025
- AI, RaaS & Smart Solutions share of revenue
- 13.9%
- 1H 2026
- Legacy Secured Logistics growth
- 5.8%
- 1H 2026 vs. 1H 2025
- Gross profit change
- -0.2%
- 1H 2026 vs. 1H 2025
- Selling, general and administrative expenses
- Approximately $5.2M vs. approximately $4.2M
- 1H 2026 vs. 1H 2025
- Net loss from continuing operations
- $3.1M vs. $2.0M
- 1H 2026 vs. 1H 2025
- Cash and cash equivalents
- Approximately $21.3M vs. approximately $24.5M
- June 30, 2026 vs. December 31, 2025
Previous Earnings,AI Reports
-
Prior first-half results combined revenue growth with lower gross profit and a net loss.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
robotics-as-a-service (raas) technical
ifrs financial
adjusted ebitda financial
expected credit loss financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Achieved
NEW YORK, Sept. 23, 2026 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited (“Guardforce AI” or the “Company”) (NASDAQ: GFAI, GFAIW), a technology-enabled service company providing solutions in Agentic AI, smart solutions in automation, robotics, and secured logistics, today announced unaudited interim financial results for the first half of 2026 (1H 2026), ended June 30, 2026.
Operational Highlights
In the first half of 2026, Guardforce AI continued to make significant strides in developing AI, Robotics-as-a-Service (RaaS) & Smart Solutions by extending features and industry expertise to its AI-powered cross-border service intelligence connection platform, DeepVoyage Go (“DVGO”), and in fortifying the Company’s established position in Legacy Secured Logistics by executing business strategy of strengthening service coverage in Thailand’s upcountry areas.
Updates in AI, RaaS & Smart Solutions
- Expanded DVGO’s service ecosystem with destination-based travel service providers. By September 2026, DVGO has established service providers partnerships in Canada, China and Taiwan, initiating business footprint expansion in service capability in both Asia and North America.
- Released DVGO Workbuddy, which uses AI agents to help destination-based services providers structure and list their service capabilities into AI-discoverable and matchable service products, supporting easier onboarding and more effective matching between cross-border demand and suitable service capabilities.
- Extended Smart Retail Solutions partnership with a renowned sportswear brand in early 2026, adding six more store installations in 2026 and 2027.
- Acquired MGAI Limited (“MGAI”) in March, 2026 to extend AI for Service implementation in child education field. Later launched new autism intervention AI modules in MGAI, by partnering with Zhongmi Interconnection, an AI-driven technology company that focuses on rehabilitation of children with special needs including autism. This collaboration expanded service range from simply language rehabilitation to multiple autism intervention aspects such as behavioral and social skills.
Updates in Legacy Secured Logistics
- Maintained approximately
97% recurring revenue. - Consolidated upcountry presence in Thailand by continuing to win new contracts from a government-owned bank in Thailand, adding hundreds of ATM location services under long-term contracts.
- Drove client mix transformation with approximately 14 retail clients among top 20 clients.
Financial Overview
Total revenue increased by
Gross profit decreased by
Management Commentary and Future Outlook
“During the first half of 2026, we maintained disciplined execution of our overall strategy. We strengthened our foundational businesses by improving the utilization of our existing operating resources in Thailand, expanding our presence beyond the major urban centers, and enhancing the efficiency and reach of our service network. In parallel, we advanced Smart Solutions expansion as additional commercial opportunity leveraging established long-term client relations in Thailand, and deepening DVGO’s engagement with travel industry service providers. These efforts are strengthening the service expertise, operating capabilities and industry relationships required to support DVGO’s AI for Service strategy,” said Lei (Olivia) Wang, Chairwoman and Chief Executive Officer.
“Looking ahead, we will remain focused on deepening the value of our operating footprint and customer relationships in Thailand, further refining Smart Solutions, and directing targeted resources toward industry collaboration and technology development for DVGO. Our priority is to convert these initiatives into measurable commercial and operational progress while building the capabilities required for the Company’s longer-term AI for Service opportunity. Through disciplined execution and focused investment, we aim to create sustainable long-term value for our customers, partners and shareholders,” said Ms. Wang.
About Guardforce AI Co., Limited
Guardforce AI Co., Limited (NASDAQ: GFAI, GFAIW) is a technology-enabled service company built on real-world service operations, trusted client relationships, and commercial smart service solutions. With its legacy secured logistics business as the operating foundation, the Company is expanding its first commercial growth curve through Smart Solutions across retail, hospitality, security, and other service environments, while building AI-native services as its second strategic growth engine. For more information, visit www.guardforceai.com, or X (formerly Twitter): @Guardforceai.
Safe Harbor Statement
This press release contains statements that do not relate to historical facts but are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can generally (although not always) be identified by their use of terms and phrases such as anticipate, appear, believe, continue, could, estimate, expect, indicate, intend, may, plan, possible, predict, project, pursue, will, would and other similar terms and phrases, as well as the use of the future tense. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the business of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control, including the risks described in our registration statements and Annual Report on Form 20-F filed on April 21, 2026 under the heading "Risk Factors" as filed with the Securities and Exchange Commission. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this press release speak only as of the date hereof. Unless otherwise required by law, we undertake no obligation to publicly update or revise these forward-looking statements, whether because of new information, future events or otherwise.
Guardforce AI Corporate Communications:
Hu Yu
Email: yu.hu@guardforceai.com
| (tables follow) | ||||||||||||
| Guardforce AI Co., Limited Unaudited Interim Condensed Consolidated Statements of Profit or Loss (Expressed in U.S. Dollars) | ||||||||||||
| Note | For the six months ended June 30, | |||||||||||
| 2026 | 2025 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| (Restated) | ||||||||||||
| Revenue | 10 | $ | 18,270,590 | $ | 17,168,005 | |||||||
| Cost of sales | (15,757,615 | ) | (14,649,027 | ) | ||||||||
| Gross profit | 2,512,975 | 2,518,978 | ||||||||||
| Stock-based compensation expenses | (41,746 | ) | (149,595 | ) | ||||||||
| Provision for withholding tax receivable | (182,569 | ) | (40,984 | ) | ||||||||
| Recovery of/(Provision for) expected credit loss on trade and other receivables | 36,802 | (34,184 | ) | |||||||||
| Research and development expenses | (407,234 | ) | (405,641 | ) | ||||||||
| Selling, general and administrative expenses | 8 | (5,193,826 | ) | (4,175,887 | ) | |||||||
| Operating loss from continuing operations | (3,275,598 | ) | (2,287,313 | ) | ||||||||
| Other income, net | 162,291 | 60,485 | ||||||||||
| Foreign exchange losses, net | (56,554 | ) | (19,066 | ) | ||||||||
| Finance income, net | 113,577 | 250,203 | ||||||||||
| Loss before income tax from continuing operations | (3,056,284 | ) | (1,995,691 | ) | ||||||||
| Income tax expense | (64,191 | ) | (48,177 | ) | ||||||||
| Net loss for the period from continuing operations | (3,120,475 | ) | (2,043,868 | ) | ||||||||
| Discontinued operations: | ||||||||||||
| Net loss for the period from discontinued operations | (7,171 | ) | (183,254 | ) | ||||||||
| Net loss for the period | (3,127,646 | ) | (2,227,122 | ) | ||||||||
| Net loss for the period attributable to: | ||||||||||||
| Net (loss)/profit attributable to non-controlling interests | (27,047 | ) | 8,955 | |||||||||
| Net loss attributable to equity holders of the Company | (3,100,599 | ) | $ | (2,236,077 | ) | |||||||
| Net loss for the period | $ | (3,127,646 | ) | (2,227,122 | ) | |||||||
| Loss per share | ||||||||||||
| Basic and diluted loss attributable to the equity holders of the Company | $ | (0.10 | ) | $ | (0.11 | ) | ||||||
| Basic and diluted loss attributable to the equity holders of the Company – continuing operations | $ | (0.10 | ) | $ | (0.10 | ) | ||||||
| Basic and diluted loss attributable to the equity holders of the Company – discontinued operations | $ | (0.00 | ) | $ | (0.01 | ) | ||||||
| Weighted average number of shares used in computation: | ||||||||||||
| Basic and diluted | 29,577,091 | 19,996,747 | ||||||||||
| Guardforce AI Co., Limited Unaudited Interim Condensed Consolidated Balance Sheets (Expressed in U.S. Dollars) | ||||||||||||
| Note | As of June 30, 2026 | As of December 31, 2025 | ||||||||||
| (Unaudited) | ||||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 5 | $ | 21,250,627 | $ | 24,545,290 | |||||||
| Trade receivables, net | 5,120,900 | 4,947,264 | ||||||||||
| Other current assets | 1,876,392 | 2,441,038 | ||||||||||
| Withholding tax receivable, net | 557,013 | 902,845 | ||||||||||
| Inventories | 43,241 | 21,519 | ||||||||||
| Other financial assets at amortized cost | 76,885 | 77,100 | ||||||||||
| Assets held for sale | - | 1,150,324 | ||||||||||
| Total current assets | 28,925,058 | 34,085,380 | ||||||||||
| Non-current assets: | ||||||||||||
| Restricted cash | 5 | 2,476,766 | 2,322,790 | |||||||||
| Property, plant and equipment | 2,949,559 | 3,088,905 | ||||||||||
| Right-of-use assets | 4,277,854 | 4,523,309 | ||||||||||
| Intangible assets, net | 6 | 1,244,389 | 1,057,144 | |||||||||
| Goodwill | 106,416 | - | ||||||||||
| Withholding tax receivable, net | 2,510,348 | 2,325,281 | ||||||||||
| Deferred tax assets, net | 1,283,246 | 1,418,174 | ||||||||||
| Other non-current assets | 438,299 | 272,827 | ||||||||||
| Total non-current assets | 15,286,877 | 15,008,430 | ||||||||||
| Total assets | $ | 44,211,935 | $ | 49,093,810 | ||||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Trade payables and other current liabilities | $ | 3,354,875 | $ | 3,158,254 | ||||||||
| Lease liabilities | 2,180,806 | 2,141,509 | ||||||||||
| Liabilities directly associated with assets held for sale | - | 1,111,804 | ||||||||||
| Total current liabilities | 5,535,681 | 6,411,567 | ||||||||||
| Non-current liabilities: | ||||||||||||
| Lease liabilities | 1,857,633 | 2,081,431 | ||||||||||
| Provision for employee benefits | 6,250,389 | 6,493,677 | ||||||||||
| Total non-current liabilities | 8,108,022 | 8,575,108 | ||||||||||
| Total liabilities | 13,643,703 | 14,986,675 | ||||||||||
| Equity | ||||||||||||
| Ordinary shares – par value | 7 | 3,762,312 | 2,922,460 | |||||||||
| Treasury shares | (192,893 | ) | - | |||||||||
| Subscription receivable | (50,000 | ) | (50,000 | ) | ||||||||
| Additional paid in capital | 99,748,279 | 100,271,584 | ||||||||||
| Legal reserve | 223,500 | 223,500 | ||||||||||
| Warrants reserve | 251,036 | 251,036 | ||||||||||
| Accumulated deficit | (73,962,624 | ) | (70,862,025 | ) | ||||||||
| Accumulated other comprehensive income | 845,820 | 1,397,005 | ||||||||||
| Capital & reserves attributable to equity holders of the Company | 30,625,430 | 34,153,560 | ||||||||||
| Non-controlling interests | (57,198 | ) | (46,425 | ) | ||||||||
| Total equity | 30,568,232 | 34,107,135 | ||||||||||
| Total liabilities and equity | $ | 44,211,935 | $ | 49,093,810 | ||||||||
| Guardforce AI Co., Limited Unaudited Interim Condensed Consolidated Statements of Cash Flows (Expressed in U.S. Dollars) | ||||||||
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| (Restated) | ||||||||
| Cash flows from operating activities | ||||||||
| Net loss from continuing operations | $ | (3,120,475 | ) | $ | (2,043,868 | ) | ||
| Adjustments for: | ||||||||
| Depreciation and amortization of fixed and intangible assets | 1,728,669 | 1,596,363 | ||||||
| Stock-based compensation expenses | 41,746 | 149,595 | ||||||
| Provision for withholding tax receivable | 182,569 | 40,984 | ||||||
| (Recovery of)/Provision for expected credit loss on trade and other receivables, net | (36,802 | ) | 34,184 | |||||
| Finance income, net | (113,577 | ) | (250,203 | ) | ||||
| Deferred income taxes | 64,191 | 48,177 | ||||||
| (Gain)/Loss from assets disposal | (34,936 | ) | 108 | |||||
| Provision for employee benefit | 387,993 | 359,113 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase)/Decrease in trade and other receivables | (395,111 | ) | 997,660 | |||||
| Decrease/(Increase) in other current assets | 536,842 | (216,330 | ) | |||||
| (Increase)/Decrease in inventories | (18,166 | ) | 50,735 | |||||
| (Increase)/Decrease in restricted cash | (283,826 | ) | 20,275 | |||||
| Increase in other non-current assets | (182,150 | ) | (932,028 | ) | ||||
| Increase in trade and other payables and other current liabilities | 179,699 | 124,584 | ||||||
| Increase in withholding tax receivable | (191,923 | ) | (407,260 | ) | ||||
| Increase in provision for employee benefits | (302,870 | ) | (400,683 | ) | ||||
| Net cash used in operating activities – continuing operations | (1,558,127 | ) | (828,594 | ) | ||||
| Net cash used in operating activities - discontinuing operations | - | (212,503 | ) | |||||
| Net cash used in operating activities | (1,558,127 | ) | (1,041,097 | ) | ||||
| Cash flows from investing activities | ||||||||
| Acquisition of property, plant and equipment | (533,560 | ) | (477,540 | ) | ||||
| Proceeds from sale of property, plant and equipment | 36,962 | 1,405 | ||||||
| Interest received | 300,720 | 331,631 | ||||||
| Payments for financial assets at amortized cost | - | (76,440 | ) | |||||
| Payment for acquisition of subsidiary, net of cash acquired | (246,103 | ) | - | |||||
| Net cash used in investing activities – continuing operations | (441,981 | ) | (220,944 | ) | ||||
| Net cash provided by/(used in) investing activities - discontinuing operations | 14,232 | (4,987 | ) | |||||
| Net cash used in investing activities | (427,749 | ) | (225,931 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issue of shares | 274,801 | 3,491,850 | ||||||
| Payments for repurchase of treasury shares | (192,773 | ) | - | |||||
| Repayment of bank borrowings | - | (45,296 | ) | |||||
| Payment of lease liabilities | (1,237,392 | ) | (877,856 | ) | ||||
| Net cash (used in)/provided by financing activities | (1,155,364 | ) | 2,568,698 | |||||
| Net (decrease)/increase in cash and cash equivalents, | (3,141,240 | ) | 1,301,670 | |||||
| Effect of movements in exchange rates on cash held | (185,555 | ) | 214,176 | |||||
| Cash and cash equivalents at January 1 | 24,577,422 | 21,936,422 | ||||||
| Cash and cash equivalents at June 30 | $ | 21,250,627 | $ | 23,452,268 | ||||
Non-IFRS Financial Measures
To supplement our unaudited interim condensed consolidated financial statements, which are prepared and presented in accordance with International Financial Reporting Standard (“IFRS”), we use the non-IFRS adjusted EBITDA as financial measures for our consolidated results.
We believe that adjusted EBITDA helps identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in loss from operations and net loss. We believe that these non-IFRS measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present the non-IFRS financial measures in order to provide more information and greater transparency to investors about our operating results.
EBITDA represents net loss before finance income, net, income tax expense, depreciation and amortization of fixed assets and intangible assets, which we do not believe are reflective of our core operating performance during the periods presented.
Non-IFRS adjusted EBITDA represents net loss from continuing operations before(i) finance income, net, income tax expense and depreciation and amortization of fixed assets and intangible assets, (ii) certain non-cash expenses, consisting of stock-based compensation expenses, (recovery of)/provision for expected credit loss on trade receivables and other receivables, provision for withholding tax receivables, and foreign exchange losses, net.
Non-IFRS loss per share represents non-IFRS net loss attributable to ordinary shareholders divided by the weighted average number of shares outstanding during the periods.
Non-IFRS diluted loss per share represents non-IFRS net loss attributable to ordinary shareholders divided by the weighted average number of shares outstanding during the periods on a diluted basis.
The table below is a reconciliation of our net loss from continuing operations to EBITDA and non-IFRS adjusted EBITDA from continuing operations for the periods indicated:
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss from continuing operations - IFRS | $ | (3,120,475 | ) | $ | (2,043,868 | ) | ||
| Finance income, net | (113,577 | ) | (250,203 | ) | ||||
| Income tax expense | 64,191 | 48,177 | ||||||
| Depreciation and amortization expense of fixed and intangible assets | 1,728,669 | 1,596,363 | ||||||
| EBITDA | (1,441,192 | ) | (649,531 | ) | ||||
| Stock-based compensation expenses | 41,746 | 149,595 | ||||||
| Provision for withholding taxes receivable | 182,569 | 40,984 | ||||||
| (Recovery of)/Provision for expected credit loss on trade and other receivables | (36,802 | ) | 34,184 | |||||
| Foreign exchange losses, net | 56,554 | 19,066 | ||||||
| Adjusted EBITDA (Non-IFRS) | $ | (1,197,125 | ) | $ | (405,702 | ) | ||
| Non-IFRS loss per share | ||||||||
| Loss per share attributable to equity holders of the Company | ||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.02 | ) | ||
| Weighted average number of shares used in computation: | ||||||||
| Basic and diluted | 29,577,091 | 19,996,747 | ||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Guardforce AI’s AI, RaaS & Smart Solutions business develop in 1H 2026?
The AI, RaaS & Smart Solutions metric grew 10.8% year over year and accounted for 13.9% of total revenue in 1H 2026. Growth was mainly driven by increased demand from retail customers for Smart Solutions and revenue from MGAI, acquired in March 2026. The company also expanded its DeepVoyage Go platform with destination-based travel service providers in Canada, China and Taiwan and launched DVGO Workbuddy to help service providers structure and list AI-discoverable offerings.
What progress did Guardforce AI make with its Legacy Secured Logistics operations?
Legacy Secured Logistics generated 86.1% of total revenue in 1H 2026 and grew 5.8% compared with 1H 2025. The business maintained approximately 97% recurring revenue and strengthened its upcountry presence in Thailand by winning additional long-term ATM service contracts from a government-owned bank. The client mix also shifted, with around 14 retail clients among the top 20 clients.
How did Guardforce AI’s cash flows and cash position change during 1H 2026?
Net cash used in operating activities from continuing operations was $1.56 million in 1H 2026, compared with $0.83 million in 1H 2025. Net cash used in investing activities was $0.43 million, and net cash used in financing activities was $1.16 million. Overall, cash and cash equivalents decreased from $24.58 million at January 1, 2026 to $21.25 million at June 30, 2026.
How is Guardforce AI investing in research and development in 2026?
Research and development expense was approximately $0.4 million in 1H 2026, similar to 1H 2025, and represented about 13.6% of the company’s total budgeted R&D expense for 2026. Management describes this as a controlled investment strategy while it advances AI for Service capabilities, including new autism intervention AI modules at MGAI developed with Zhongmi Interconnection.