iOThree Limited Chairman and CEO Letter to Shareholders
Rhea-AI Summary
iOThree (Nasdaq:IOTR) reported FY2026 revenue of US$14.7 million, up 40% from US$10.5 million, with gross profit rising 68% to US$3.2 million. Gross margin improved from 17.8% to 21.4%.
Higher expansion and listing costs led to a net loss of US$1.2 million. The company highlights growing demand for its edge compute and SaaS services, upcoming product launches in 2026, and plans for a Japan office by early Q4 2026, while managing supply-chain and talent challenges.
Positive
- FY2026 revenue grew 40% to US$14.7 million
- Gross profit increased 68.4% to US$3.2 million
- Overall gross margin improved from 17.8% to 21.4%
- Improved operating margin despite one-off public listing costs
- Edge compute and SaaS remain the largest revenue contributors
- Japan office targeted to be operational by early Q4 2026
- AI-powered analytics platform and digital bulletin board launch planned in 2026
- Collaboration with Seadronix expanding opportunity pipeline
Negative
- FY2026 net loss of US$1.2 million
- Net loss excluding one-off listing expenses at US$0.6 million
- Higher general and administrative expenses from headcount, listing and compliance
- Global memory shortage impacting server supply and client deliveries
- Supply issues contributed to softer performance in Q2
- Ongoing challenges in attracting and retaining specialised talent
- Geopolitical uncertainty identified as a risk factor
Market reaction after FY2026 earnings report: IOTR +40.48% in the Jul 8 session
In the Jul 8 session, IOTR gained 40.48%, reflecting a significant positive market reaction. Argus tracked a peak move of +83.3% during that session. Our momentum scanner triggered 70 alerts that day, indicating high trading interest and price volatility. Trading volume was exceptionally heavy at 143.5x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 20 | Cyber approval news | Positive | -1.1% | V.Secure gained IACS UR E27 cyber-resilience type approval from RINA. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Limited history, but prior positive certification news was followed by a modest negative price reaction.
Key Terms
edge computing technical
saas technical
ai-powered analytics technical
operating margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Singapore, July 07, 2026 (GLOBE NEWSWIRE) -- iOThree Limited ("iO3" or the "Company") (Nasdaq: IOTR), a pioneering provider of digital solutions for the maritime industry, today issued the following letter from the Company's chairman and chief executive officer to its shareholders.
Dear Fellow Shareholders,
I am pleased to report our results for FY2026, underscoring the progress we have made and the strengthening foundations of our business. We delivered topline growth of
Total revenue for the year ended March 31, 2026 (“FY2026”) stood at US
However, as a result of higher general and administrative expenses attributable to higher staff headcount for business expansion, listing and compliance related expenses, we recorded a net loss of US
Our edge compute services and SaaS services segment remain our most significant revenue contributor. Vessel operators are increasingly choosing to run computing power directly on board rather than through the cloud, a shift driven by growing concerns around data security and ownership. This change in mindset is fundamentally reshaping how the industry adopts maritime technology, and it plays directly to our strengths. We recognised this shift early and moved deliberately in this space. Today, that conviction has translated into a meaningful head start over our peers.
Despite absorbing one-off costs associated with our public listing, the Group delivered an improved operating margin. This was achieved through greater operational scale, higher productivity across our teams and continued cost discipline. These results give us genuine confidence that the business is on solid footing and well-positioned for what lies ahead.
A Favourable Industry Backdrop
The broader industry environment remains supportive. Demand for digital solutions across the marine sector continues to grow — driven in part by regulatory requirements, but more broadly by a growing industry-wide recognition that technology can meaningfully improve vessel safety, crew welfare, environmental responsibility, and operational efficiency. The ongoing decline in satellite communication costs added further momentum, lowering barriers to digital adoption across fleets of all sizes.
We continue to see healthy demand across Asia, with Singapore and Taiwan being particularly active markets for us. We expect this momentum to continue into FY2027, underpinned by favourable industry developments and rising digital adoption.
In Singapore specifically, the upcoming Maritime Master Plan, targeted for formalisation by 2027, sets out a clear national agenda to strengthen the country's standing as a global maritime hub, with a focused emphasis on innovation, artificial intelligence and workforce development. This is an encouraging backdrop for us, signalling both growing vessel traffic and increasing appetite for the digital services we provide.
Building The Products Our Customers Need
On the product front, progress is well underway across several areas. Our AI-powered analytics platform, focused on multi-fuel optimisation and carbon reporting, continues to develop and reflects our commitment to practical, outcomes-driven innovation for the maritime sector. We also expect to launch our shipboard digital bulletin board service in the third quarter of 2026. These investments in product development are central to how we differentiate ourselves from competition in our space.
We are also stepping up our marketing and customer acquisition efforts to capitalise on rising demand for maritime technologies across Asia. Through active participation in events such as Asia Pacific Maritime 2026, we connect directly with shipowners, ship managers and other industry players in the region and develop meaningful strategic partnerships for both business development and product innovation. Our collaboration with deep-tech company Seadronix, combining real-time visual recognition, risk detection, and intelligent decision support, has already opened up a range of new opportunities this year, and we expect that pipeline to continue growing.
Geographic expansion remains a deliberate part of our growth strategy. Our move into Japan is gathering pace, with hiring and groundwork already underway. We expect our Japan office to be operational by early Q4 2026. This is a milestone that will bring us closer to customers in one of the world's most significant maritime markets.
Managing Challenges
We remain mindful of the headwinds ahead. While geopolitical uncertainty continues to pose risks, the Group has not experienced any direct impact to date. We are monitoring developments closely and remain ready to respond with agility and discipline, managing risks prudently while acting proactively on opportunities that may emerge from a changing environment.
Talent acquisition also remains a priority. In a niche and growing market with a limited talent pool, we are working hard to attract and retain the right people. Alongside direct recruitment, we are exploring targeted outsourcing where it makes operational sense.
The current global memory shortage is also affecting our supplies on access to Servers. This supply is affecting our deliveries to our clients and has resulted in softer performance in Q2. Our teams are working hard to look for alternatives and are positive we would find a solution soon to mitigate the supply crunch.
Appreciation and Looking Ahead
Finally, I want to express my sincere gratitude to all of you, our shareholders and our Board, for the trust you place in iO3. To our customers, thank you for your continued partnership. And to our employees, your commitment and expertise are the foundation of everything we have achieved so far.
Eng Chye Koh
Chief Executive Officer and Chairman
iOThree Limited
ABOUT iO3
iO3 is a leading provider of Maritime Digital technologies, offering a comprehensive range of solutions and services to optimize vessel operations, enhance safety, and strengthen cyber resilience. Committed to driving digital innovation in the maritime industry, iO3 empowers shipowners to adapt to evolving market demands and leverage advanced technologies to protect their vessels, operations, and crew in an increasingly connected world. For further information, visit www.io3.sg and https://www.linkedin.com/company/io3-pte-ltd.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements, expressed or implied, in this release are based only on information currently available to the Company and speak only as of the date on which they are made. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this release. Except as otherwise required by applicable law, the Company disclaims any duty to publicly update any forward-looking statement to reflect events or circumstances after the date of this release. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
For further information, please contact:
iOThree Limited
Investor Relations: ir@io3.sg
