Sagtec Reports 46 Percent Gross Profit Growth and Expands International Business Momentum
SAGT’s first-half 2026 results show margin and cash-flow gains as it adds new AI and data infrastructure contracts outside Malaysia.
Rhea-AI Summary
Sagtec Global (SAGT) reported first-half 2026 results with 46% gross profit growth to RM14.1 million and gross margin expansion to 29.0%, supported by stronger services performance and lower cost of sales.
Revenue increased 1% year over year to RM48.5 million, while services revenue rose 6% to RM30.8 million, led by a 52% increase in social media management services. Operating income grew 11% to RM6.4 million despite higher post‑listing and expansion-related expenses. Net cash from operating activities improved by RM9.9 million to an inflow of RM7.9 million, and cash and cash equivalents increased 34% to RM12.3 million.
After the reporting period, Sagtec announced a 36‑month data center management agreement with Viryatec Limited expected to generate about US$10 million in revenue and received a first Halo AI Robot order from a Dubai distributor valued at approximately US$3 million.
Positive
- Gross profit up 46% to RM14.1 million; margin widened to 29.0%
- Operating income increased 11% year over year to RM6.4 million
- Operating cash flow swung by RM9.9 million to RM7.9 million inflow
- Data center agreement with Viryatec expected to add ~US$10 million revenue over 36 months
- First Halo AI Robot order worth approximately US$3 million from Dubai distributor
- Cash balance up 34% to RM12.3 million as of June 30, 2026
Negative
- Total revenue grew only 1% year over year to RM48.5 million
- Tangible product revenue declined 12% to RM16.5 million
- Operating expenses increased due to post-listing and expansion activities
- Results were partially offset by higher tax expense and lower non-operating income
News Explained
The announced contracts remain outside first-half revenue, with recognition dependent on performance, delivery, and other conditions.
As of
The post-period Viryatec agreement and Halo AI Robot order were not included in the first-half results; actual revenue recognition depends on contractual performance, delivery and other applicable conditions.
Details
Market Reaction – SAGT
Following this news, SAGT has declined 2.29%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.62. Trading volume is elevated at 2.5x the average, suggesting increased selling activity.
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Key Figures
- Gross profit
- RM14.1 million (US$3.4 million), +46%
- First half 2026 vs. first half 2025
- Gross margin
- 29.0% from 20.1%
- First half 2026 vs. prior-year period
- Operating income
- RM6.4 million (US$1.6 million), +11%
- First half 2026
- Net operating cash flow
- RM7.9 million inflow from RM2.1 million outflow
- First half 2026 vs. first half 2025
- Revenue
- RM48.5 million (US$11.9 million), +1%
- First half 2026
- Cash and cash equivalents
- RM12.3 million (US$3.0 million)
- As of June 30, 2026
- Data center agreement
- Approximately US$10 million over 36 months
- Viryatec agreement following the reporting period
- Halo AI Robot order
- 1,500 robots valued at approximately US$3 million
- First order from a Dubai distributor
Historical Context
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Preliminary first-half revenue and gross profit figures plus AI expansion initiatives were disclosed.
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Proposed Viryatec data-center management role carried a 36-month revenue opportunity.
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First 1,500-unit Halo AI robot purchase order marked commercial deployment.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gross margin financial
operating cash flow financial
overdraft facilities financial
revenue recognition financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Stronger margins and operating cash flow provide a foundation for growth across AI and data infrastructure
KUALA LUMPUR, Malaysia, Sept. 16, 2026 (GLOBE NEWSWIRE) -- Sagtec Global Limited (Nasdaq: SAGT) ("Sagtec" or the "Company"), a provider of customizable software, technology infrastructure and digital solutions, today announced its unaudited financial results for the six months ended June 30, 2026. The Company delivered higher gross profit, wider margins and positive operating cash flow while continuing to build a broader growth platform across artificial intelligence, data infrastructure and technology-enabled solutions.
First Half 2026 Highlights
- Gross profit increased
46% to RM14.1 million (US$3.4 million ), while gross margin expanded to29.0% from20.1% in the prior-year period. - Operating income increased
11% to RM6.4 million (US$1.6 million ), reflecting improved service-related cost efficiency despite higher post-listing and expansion-related operating expenses. - Net operating cash flow recorded a RM9.9 million (US
$2.4 million ) turnaround, improving from an outflow of RM2.1 million (US$0.5 million ) in the first half of 2025 to an inflow of RM7.9 million (US$1.9 million ) in the first half of 2026. - Services revenue increased
6% to RM30.8 million (US$7.5 million ), led by a52% increase in social media management services revenue. - Revenue increased
1% to RM48.5 million (US$11.9 million ), compared with RM47.9 million (US$11.7 million ) for the first half of 2025. - Cash and cash equivalents reached RM12.3 million (US
$3.0 million ) as of June 30, 2026, with RM2.25 million (US$0.55 million ) in fully undrawn overdraft facilities. - Following the reporting period, Sagtec announced a 36-month data center management agreement with Viryatec Limited that is expected to generate approximately US
$10 million in revenue over the contract term, together with a first order for 1,500 Halo AI Robots from a Dubai distributor valued at approximately US$3 million .
Management Commentary
"Our first-half performance demonstrates that Sagtec is strengthening the economic foundation of its business," said Chen Lok Ng, Chairman and Chief Executive Officer of Sagtec Global. "Gross profit increased
Mr. Ng continued, "The Viryatec agreement and the first Halo AI Robot order represent important progress in our expansion into data infrastructure and AI-enabled solutions. Together with our stronger cash position and established software platform, these developments broaden our sources of potential revenue and reinforce our confidence in Sagtec's long-term growth opportunities. Our priority is disciplined execution and the conversion of these opportunities into sustainable value for shareholders."
Business Momentum Following the Reporting Period
In July 2026, Sagtec announced a 36-month data center management agreement with Hong Kong-based Viryatec Limited that is expected to generate approximately US
Selected Financial Results
| RM and US$ thousands, except percentages | 1H 2026 RM / US$ | 1H 2025 RM / US$ | Change |
| Revenue | 48,544 / 11,887 | 47,867 / 11,721 | |
| Services revenue | 30,779 / 7,537 | 29,121 / 7,131 | |
| Gross profit | 14,074 / 3,446 | 9,643 / 2,361 | |
| Gross margin | +8.8 pts | ||
| Operating income | 6,431 / 1,575 | 5,774 / 1,414 | |
| Net cash provided by/(used in) operating activities | 7,874 / 1,928 | (2,058) / (504) | n.m. |
Note: U.S. dollar amounts are convenience translations included in the Company's interim financial information. Percentages may not add due to rounding. n.m. = not meaningful.
First Half Operating Review
Services remained the Company's largest revenue category at
Revenue from tangible products decreased
Total cost of sales decreased
Liquidity and Capital Resources
Net operating cash flow recorded a RM9.9 million (US
Outlook and Strategic Priorities
Sagtec enters the second half of 2026 with improved gross margins, positive operating cash flow and increased cash resources. Management is focused on executing the Viryatec and Halo AI Robot engagements, expanding recurring and project-based revenue, preserving service delivery efficiency and deploying capital selectively across Malaysia and targeted international markets. The Company believes its growing capabilities in software, artificial intelligence, data analytics and technology infrastructure provide a broader base for long-term growth.
About Sagtec Global Limited
Sagtec Global Limited (Nasdaq: SAGT) is a Malaysia-headquartered AI technology company providing AI-asissted software solutions, enterprise technology platforms, and digital transformation services to businesses across Southeast Asia. The Company develops customizable enterprise software, intelligent data management platforms, and cloud-based technologies that support digital transformation across multiple industries. Its proprietary solutions, including the Speed+ cloud-based smart ordering platform, currently serve more than 12,000 clients. Since its IPO in March 2025, Sagtec has expanded its operations across Malaysia, Southeast Asia, and the Middle East. For more information, visit www.sagtec-global.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding, among other matters, the Company's strategies, market opportunities, contracts, expected revenue, operating performance, growth prospects and financial condition. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially, including customer demand, project timing, contractual performance, delivery, competition, regulatory requirements, economic conditions and the risks described in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update these statements, except as required by law.
Contact Information
Sagtec Global Limited Contact:
Wan Najwa Enche Khawari
Head of Public Relations & Corporate Affairs
Telephone +6011-6217 3661
Email: info.pr@sagtec-global.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Sagtec’s revenue mix evolve in the first half of 2026?
Services remained the largest component at 63.4% of total revenue. Services revenue rose 6% to RM30.8 million, driven by 52% growth in social media management services. Subscription revenue was stable at RM13.5 million, data management and analysis services increased modestly to RM6.0 million, while revenue from tangible products fell 12% to RM16.5 million, mainly from lower kiosk sales and timing of customer deployments.
What changes occurred in Sagtec’s cost structure and gross profit profile?
Total cost of sales decreased 10% to RM34.5 million. Gross profit from services increased 170% to RM8.2 million, helped by improved use of technical resources and infrastructure. The coffee machine kiosk rental business generated RM1.3 million in revenue and RM0.9 million in gross profit, compared with a gross loss in the prior-year period.
How did Sagtec’s investing cash flows and capital spending change?
Net cash used in investing activities decreased to RM3.9 million from RM15.8 million, reflecting more selective capital expenditure. Management stated that the stronger cash position provides greater flexibility to support operations and pursue growth opportunities.
What strategic priorities is Sagtec emphasizing for the second half of 2026?
The company is focused on executing the Viryatec and Halo AI Robot engagements, expanding recurring and project-based revenue, maintaining service delivery efficiency, and deploying capital selectively across Malaysia and targeted international markets. Management believes its capabilities in software, artificial intelligence, data analytics and technology infrastructure provide a broader base for long-term growth.