Guardforce AI Reports Interim Financial Results for the First Half of 2025, and Provides Business Update

Rhea-AI Summary

Guardforce AI (NASDAQ: GFAI) reported its first half 2025 financial results, showing mixed performance as the company advances its AI-first transformation strategy. Revenue increased 3.6% to $18.2 million, while gross profit declined to $3.0 million with a margin decrease to 16.2%. The company reported a net loss of $2.2 million.

Key highlights include the launch of DeepVoyage Go (DVGO), an AI-powered itinerary planner, and 18.1% growth in Guardforce Digital Machine (GDM) revenue to $2.2 million. The company maintained strong market position in Thailand's secured logistics and cash management sectors, securing important contract renewals with major clients. Cash position remained solid at $25.0 million as of June 30, 2025.

Positive

• Revenue growth of 3.6% year-over-year to $18.2 million
• GDM revenue increased 18.1% to $2.2 million
• Strong cash position of $25.0 million, up from $23.4 million in December 2024
• Secured multi-year contract renewals with major clients including Government Savings Bank Thailand
• Successful launch of new AI platform DeepVoyage Go (DVGO)

Negative

• Net loss increased to $2.2 million from $1.9 million year-over-year
• Gross profit declined to $3.0 million from $3.2 million
• Gross profit margin decreased to 16.2% from 18.4%

Insights

AI and Technology Analyst

GFAI's H1 2025 shows modest 3.6% revenue growth but declining profits amid AI transformation and R&D investments.

Guardforce AI's interim results present a mixed financial picture as the company navigates its strategic pivot toward AI-driven solutions. The 3.6% revenue increase to $18.2 million demonstrates moderate top-line growth, but the declining gross profit margin (16.2% vs 18.4% in 1H 2024) and widening net loss ($2.2 million vs $1.9 million) indicate transformation challenges. This pattern is typical of traditional businesses investing in technology transitions - short-term margin compression to fund future capabilities.

The launch of DeepVoyage Go represents GFAI's first commercial deployment of their multi-agent AI platform, targeting the travel sector with AI-powered itinerary planning. While the company reports "encouraging early feedback," no specific metrics quantify adoption rates or revenue contribution, suggesting the product remains in early commercialization phases. Their GDM (Guardforce Digital Machine) solution showed stronger results with 18.1% growth to $2.2 million, indicating traction in their cash automation offerings for banking and retail clients.

The $25 million cash position gives GFAI significant runway to continue funding their AI transformation without immediate capital concerns. However, the critical question remains whether their AI investments will accelerate revenue growth sufficiently to offset the current margin compression. The continued R&D expenditures without corresponding revenue acceleration suggests their AI offerings are still early in the product lifecycle, with significant work needed to achieve commercial scale across multiple sectors.

Advancing proprietary multi-agent platform that integrates AI, robotics, and smart solutions to power sector-specific applications

NEW YORK, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited (“Guardforce AI” or the “Company”) (NASDAQ: GFAI, GFAIW), an AI-driven technology company providing next-generation smart solutions and applications across cash management, retail automation, robotics, and Agentic AI, today announced financial results and provided a business update for the first half of 2025 (1H 2025) ended June 30, 2025.

AI, Robotics & Smart Solutions Highlights

In the first half of 2025, Guardforce AI advanced its AI-first transformation strategy, demonstrating strong momentum in both multi-agent AI platform development and the commercialization of smart solutions across Thailand’s retail and banking sectors.

• Launched DeepVoyage Go (DVGO) on April 1, 2025, an AI-powered itinerary planner tailored for travel professionals. As the first commercial deployment of the Company’s multi-agent AI platform, DVGO enables faster itinerary planning, personalized recommendations, and more efficient workflows. Since launch, DVGO has received encouraging early feedback from users, validating its potential to enhance productivity in the travel sector. These initial results reinforce the Company’s confidence in expanding the multi-agent AI platform into additional verticals.
• Revenue from Guardforce Digital Machine (GDM) grew by $ 0.3 million, or 18.1%, to $2.2 million in 1H 2025, compared to $1.8 million in 1H 2024, reflecting increasing adoption among banking and retail clients in Thailand. GDM solutions automate cash handling, enhance transparency, and reduce operational overhead.
  
• Further expanded smart retail solutions with AI-driven video analytics and real-time insights to optimize store layouts, manage inventory, and improve customer engagement. Several proof-of-concept projects were initiated during the period, with additional deployments underway.
  
  

Secured Logistics Business and Operational Highlights

In the first half of 2025, Guardforce AI maintained its market-leading position in Thailand with in both secured logistics and cash management, underpinned by strong contract renewals, a resilient operational network, and continued evolution of its client portfolio.

• Secured multi-year contract renewals with major clients in June 2025, including Government Savings Bank (Thailand) and other top-tier financial and retail institutions.
• Continued to diversify client mix with retail clients contributing a growing share of overall revenue. Currently, approximately two thirds of the Company’s top 15 clients are retail customers.
  
  

“In the first half of 2025, we made significant progress advancing our AI-first strategy, designed to deliver solutions that are both cutting-edge and practical,” said Lei (Olivia) Wang, Chairwoman and Chief Executive Officer of Guardforce AI. “The launch of DVGO demonstrates our innovative ability to translate multi-agent AI into real-world applications that enhance productivity, while our smart solutions are already delivering measurable impact across the banking and retail sectors. With a strong balance sheet, we remain well positioned to execute on our AI-first strategy that builds product ecosystems to enhance operational intelligence, drive efficiency, and create lasting value across sectors.”

Financial Overview

Revenue increased by approximately $0.6 million, or 3.6%, to approximately $18.2 million for 1H 2025, compared to 1H 2024. Gross profit decreased to approximately $3.0 million for 1H 2025, compared to approximately $3.2 million for 1H 2024. Gross profit margin decreased to 16.2% for 1H 2025, from 18.4% for 1H 2024, primarily due to costs outpacing the growth in revenue during this interim period.

For 1H 2025, selling, general, and administrative expenses decreased to approximately $4.7 million, compared to approximately $4.9 million for 1H 2024, representing a 3.2% decrease. For 1H 2025, net loss from continuing operations was $2.2 million, compared to net loss from continuing operations of $1.9 million for 1H 2024. This was mainly due to the sustained investment in research & development and the decline in gross profit. As of June 30, 2025, and December 31, 2024, the Company had cash, cash equivalents and restricted cash of approximately $25.0 million and $23.4 million, respectively.

About Guardforce AI Co., Ltd.

Guardforce AI (Nasdaq:GFAI/ GFAIW) is an AI-driven technology company with a solid operational foundation in the cash logistics and retail sectors. Through its proprietary Intelligent Cloud Platform (ICP), GFAI delivers next-generation smart solutions and AI applications spanning cash management, retail automation, robotics, and Agentic AI. Expanding into areas such as travel planning, the Company is demonstrating how scalable AI can drive industry transformation, balancing stable, recurring revenues with high-growth, future-ready innovations. For more information, visit www.guardforceai.com 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 reports 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.

Investor Relations:
David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: gfai@crescendo-ir.com
Tel: 212-671-1020

Guardforce AI Corporate Communications
Hu Yu
Email: yu.hu@guardforceai.com

(tables follow)

Guardforce AI Co., Limited and Subsidiaries
Unaudited Interim Condensed Consolidated Statements of Profit or Loss
(Expressed in U.S. Dollars)

				For the six months ended June 30,
				2025					2024
				(Unaudited)					(Unaudited)
Revenue					$	18,207,186				$	17,566,844
Cost of sales						(15,252,223		)			(14,327,094		)
Gross profit						2,954,963					3,239,750
Stock-based compensation expenses						(149,595		)			(172,655		)
(Provision for) Recovery of withholding tax receivable						(40,984		)			32,980
Provision for expected credit loss on trade and other receivables						(15,986		)			(184,180		)
Impairment loss on goodwill						-					(30,467		)
Research and Development expenses						(522,503		)			(106,835		)
Selling, general and administrative expenses						(4,706,656		)			(4,860,455		)
Operating loss from continuing operations						(2,480,761		)			(2,081,862		)
Other income, net						70,548					50,881
Foreign exchange losses, net						(19,066		)			(49,041		)
Finance income, net						250,334					179,927
Loss before income tax from continuing operations						(2,178,945		)			(1,900,095		)
Provision for income tax (expense) benefit						(48,177		)			22,949
Net loss for the period from continuing operations						(2,227,122		)			(1,877,146		)
Discontinued operations:
Net gain for the period from discontinued operations						-					38,719
Net loss for the period						(2,227,122		)			(1,838,427		)
Less: net profit attributable to non-controlling interests						8,955					9,167
Net loss attributable to equity holders of the Company					$	(2,236,077		)		$	(1,847,594		)
Loss per share
Basic and diluted loss attributable to the equity holders of the Company					$	(0.11		)		$	(0.18		)
Loss per share from continuing operations
Basic and diluted loss attributable to the equity holders of the Company					$	(0.11		)		$	(0.19		)
Weighted average number of shares used in computation:
Basic and diluted						19,996,747					9,991,600

Guardforce AI Co., Limited and Subsidiaries
Unaudited Interim Condensed Consolidated Balance Sheets
(Expressed in U.S. Dollars)

				As of June 30, 2025				As of December 31, 2024
				(Unaudited)
Assets
Current assets:
Cash and cash equivalents				$	23,452,268			$	21,936,422
Restricted cash					7,059				27,642
Trade receivables, net					5,002,723				5,922,345
Other current assets					2,684,427				2,291,439
Withholding tax receivable, net					416,975				393,960
Inventories					287,812				274,854
Other financial assets at amortized cost					76,440				-
Total current assets					31,927,704				30,846,662
Non-current assets:
Restricted cash					1,517,155				1,432,738
Property, plant and equipment					3,282,609				3,183,856
Right-of-use assets					2,448,872				2,268,022
Intangible assets, net					2,125,975				2,300,951
Goodwill					411,862				411,862
Withholding tax receivable, net					2,460,829				1,967,826
Deferred tax assets, net					1,305,423				1,281,531
Other non-current assets					2,028,231				998,971
Total non-current assets					15,580,956				13,845,757
Total assets				$	47,508,660			$	44,692,419
Liabilities and Equity
Current liabilities:
Trade payables and other current liabilities				$	4,527,716			$	4,549,364
Borrowings					-				44,232
Current portion of operating lease liabilities					1,432,441				1,574,537
Current portion of finance lease liabilities, net					105,314				96,372
Total current liabilities					6,065,471				6,264,505
Non-current liabilities:
Operating lease liabilities					1,085,675				768,174
Finance lease liabilities, net					302,863				121,746
Provision for employee benefits					5,830,087				5,548,726
Total non-current liabilities					7,218,625				6,438,646
Total liabilities					13,284,096				12,703,151
Equity
Ordinary shares – par value $0.12 authorized 300,000,000 shares, issued and outstanding 21,821,589 shares at June 30, 2025; issued and outstanding 17,808,974 shares at December 31, 2024					2,618,626				2,137,108
Subscription receivable					(50,000	)			(50,000	)
Additional paid in capital					96,363,125				93,102,042
Legal reserve					223,500				223,500
Warrants reserve					251,036				251,036
Accumulated deficit					(66,440,917	)			(64,204,840	)
Accumulated other comprehensive income					1,310,798				590,981
Capital & reserves attributable to equity holders of the Company					34,276,168				32,049,827
Non-controlling interests					(51,604	)			(60,559	)
Total equity					34,224,564				31,989,268
Total liabilities and equity				$	47,508,660			$	44,692,419

Guardforce AI Co., Limited and Subsidiaries
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)

		For the six months ended June 30,
		2025				2024
		(Unaudited)				(Unaudited)
Cash flows from operating activities
Net loss from continuing operations		$	(2,227,122	)		$	(1,877,146	)
Net gain from discontinued operations			-				38,719
Net loss			(2,227,122	)			(1,838,427	)
Adjustments for:
Depreciation and Amortization of fixed and intangible assets			1,700,784				1,556,922
Stock-based compensation expenses			149,595				172,655
Provision for (Recovery of) withholding tax receivable			40,984				(32,980	)
Provision for expected credit loss on trade and other receivables, net			15,986				184,180
Impairment loss on goodwill			-				30,467
Netting off related parties’ balances			-				(690,487	)
Finance income, net			(250,334	)			(179,263	)
Deferred income taxes			48,177				(101,998	)
Loss (Gain) from assets disposal			231				(31,577	)
Gain from disposal of a subsidiary			-				(3,607	)
Changes in operating assets and liabilities:
Decrease (Increase)  in trade and other receivables			1,193,423				(90,891	)
Increase in other assets			(1,144,739	)			(1,005,338	)
Decrease in inventories			42,872				114,223
Decrease in restricted cash			20,275				186,971
Decrease in Trade and other payables and other current liabilities			(182,399	)			(437,966	)
(Increase) Decrease in withholding tax receivable			(407,260	)			227,903
(Decrease) Increase in provision for employee benefits			(41,570	)			13,428
Net cash used in operating activities			(1,041,097	)			(1,925,785	)
Cash flows from investing activities
Acquisition of property, plant and equipment			(482,658	)			(34,442	)
Proceeds from sale of property, plant and equipment			1,405				27,805
Acquisition of intangible assets			-				(114,224	)
Disposal of a subsidiary, net of cash disposed			-				(28,186	)
Interest received			331,762				283,750
Payments for financial assets at amortized cost			(76,440	)			-
Net cash (used in) generated from investing activities			(225,931	)			134,703
Cash flows from financing activities
Proceeds from issue of shares			3,491,850				-
Repayment of related party borrowings			-				(3,304,787	)
Repayment of bank borrowings			(45,296	)			(252,717	)
Payment of lease liabilities			(877,856	)			(877,553	)
Net cash generated from (used in) financing activities			2,568,698				(4,435,057	)
Net increase (decrease) in cash and cash equivalents,			1,301,670				(6,226,139	)
Effect of movements in exchange rates on cash held			214,176				(58,513	)
Cash and cash equivalents at January 1			21,936,422				20,263,869
Cash and cash equivalents at June 30		$	23,452,268			$	13,979,217

Non-IFRS Financial Measures

To supplement our unaudited interim condensed consolidated financial statements, which are prepared and presented in accordance with 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 income (loss) from operations and net income (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) income before (i) finance costs, income tax benefit and depreciation of fixed assets and amortization of 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) income before (i) finance costs, income tax benefit and depreciation of fixed assets and amortization of intangible assets, (ii) certain non-cash expenses, consisting of stock-based compensation expense, allowance for and write off of withholding tax receivables, provision for obsolete inventory and impairment loss on fixed assets.

Non-IFRS (loss) earnings per share represents non-IFRS net (loss) income attributable to ordinary shareholders divided by the weighted average number of shares outstanding during the periods.

 Non-IFRS diluted earnings per share represents non-IFRS net (loss) income 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 to EBITDA and non-IFRS adjusted EBITDA for the periods indicated:

		For the six months ended June 30,
		2025				2024
Net loss from continuing operations - IFRS		$	(2,227,122	)		$	(1,877,146	)
Finance income, net			(250,334	)			(179,507	)
Provision for income tax expense (benefit)			48,177				(22,949	)
Depreciation and amortization expense of fixed and intangible assets			1,700,784				1,556,922
EBITDA			(728,495	)			(522,680	)
Stock-based compensation expenses			149,595				172,655
(Recovery of) provision for withholding taxes receivable			40,984				(32,980	)
Provision for expected credit loss on trade and other receivables			15,986				184,180
Impairment loss on goodwill			-				30,467
Foreign exchange losses, net			19,066				49,041
Adjusted EBITDA (Non-IFRS)		$	(502,864	)		$	(119,317	)
Non-IFRS loss per share
Earnings Loss per share attributable to equity holders of the Company
Basic and diluted		$	(0.03	)		$	(0.01	)
Weighted average number of shares used in computation:
Basic and diluted			19,996,747				9,991,600

FAQ

What were GFAI's key financial results for first half 2025?

Guardforce AI reported revenue of $18.2 million (up 3.6%), gross profit of $3.0 million, and a net loss of $2.2 million. The company maintained a strong cash position of $25.0 million.

How did Guardforce AI's GDM business perform in 1H 2025?

Guardforce Digital Machine (GDM) revenue grew by $0.3 million or 18.1% to $2.2 million compared to 1H 2024, driven by increased adoption among banking and retail clients in Thailand.

What new AI products did GFAI launch in 2025?

GFAI launched DeepVoyage Go (DVGO) on April 1, 2025, an AI-powered itinerary planner for travel professionals, representing the first commercial deployment of their multi-agent AI platform.

What major contracts did Guardforce AI secure in 1H 2025?

The company secured multi-year contract renewals with major clients in June 2025, including Government Savings Bank (Thailand) and other top-tier financial and retail institutions.

Why did GFAI's gross profit margin decline in 1H 2025?

The gross profit margin decreased to 16.2% from 18.4% primarily due to costs outpacing the growth in revenue during this interim period.