Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) announced that a recently acquired division Krafty Labs reached profitability in its first full month under company ownership, as the firm pointed to improving margins and reiterated its expectation of achieving cash-flow positive operations in 2026.
The company said Krafty Labs, which it acquired in January 2026, generated approximately $130,000 in revenue in February, with a gross margin of 66% and a net margin of about 55%.
Management said the results reflect operating leverage within Nextech3D.ai’s platform-driven model and support its broader strategy of scaling a multi-solution AI platform for the events and experiences sector.
"The strength and depth of our customer base - hundreds of Tier 1 blue‑chip accounts alongside a rapidly expanding enterprise pipeline - gives us increasing confidence in the scalability of our platform," Nextech3D.ai CEO Evan Gappelberg said in a statement.
"Krafty Labs achieving profitability in its first full month post‑acquisition demonstrates how scale, margin expansion, and operational discipline are coming together. With this momentum, we believe Nextech3D.ai is building a clear and achievable path toward cash‑flow positivity in 2026."
Nextech3D.ai said its platform integrates multiple offerings, including event technology, spatial computing and enterprise engagement tools, allowing it to serve a range of use cases and customer segments. The company said this approach helps diversify revenue streams and reduce reliance on any single product or client.
Based on existing contracts and prior-year activity, Nextech3D.ai estimates annual recurring revenue (ARR) of roughly $3 million tied to its current customer base. The company noted that not all of this revenue is expected to be recognized in 2026 but said the figure reflects the scale and durability of its recurring revenue model.
The firm added that its revenue mix includes platform components with gross margins of about 95% and services with margins around 66%, which it expects to translate into a blended gross margin near 80% in 2026 as the business grows.
Nextech3D.ai said its customer base includes hundreds of Tier 1 accounts, supplemented by a growing pipeline of larger enterprise clients. The company attributed this to its “land-and-expand” strategy, which aims to increase deal sizes and deepen customer engagement over time.
The company also reported continued adoption of its AI-powered enterprise engagement platform, with customers using tools for event registration, ticketing, floor planning, matchmaking, analytics and related services.
Management said the early profitability of Krafty Labs demonstrates its ability to integrate acquisitions and improve operating efficiency as it scales.
Shares of Nextech gained around 7.7% in Canada at Wednesday's open.