During September 2025, Irisity AB (“Irisity” or “the Company”) has announced three notable contract wins and an operational streamlining initiative. On the 15th of September 2025, the Company reported an expanded project within New York’s transport sector valued at approx. SEK 6m. Two days later, Irisity communicated an expansion with a U.S. federal agency worth SEK 1.6m ARR, alongside the consolidation of R&D resources from Tel Aviv into Gothenburg and Budapest. Most recently, on the 22nd of September 2025, Irisity disclosed a new contract for a C5i 911 emergency operations center in Mexico valued at SEK 2.6m over two years.
Analyst Group’s View on the New Projects and Streamlining Initiatives
The recent contract announcements highlight Irisity’s ability to win business in complex public-sector environments and broaden the Company’s presence in both the U.S. and Mexico. Together, these deals diversify the Company’s recurring revenue base and demonstrate the attractiveness of the IRIS+ Enterprise platform in large-scale security projects.
The Mexican contract isn’t huge in immediate numbers (SEK 2.6m over two years), but it is strategically important. First, Irisity displaced an incumbent competitor, underlining the competitiveness of the Company’s offering. Second, it reflects a growing customer preference for scalable enterprise AI platforms over hardware-heavy alternatives. Third, it provides a clear entry point for multi-phase, multi-year expansions in the Mexican public security sector, which could become meaningful over time.
Meanwhile, the expanded New York transport project and extended agreement with the U.S. federal agency emphasize the durability of Irisity’s customer relationships. These projects show that once the Company establishes itself with demanding clients, it is able to build long-term partnerships and recurring revenue streams.
On the cost side, we believe that the announced restructuring of R&D resources is a natural step toward lowering OPEX and streamlining the cost base. Savings are expected primarily from reductions in personnel and external contractors. Analyst Group estimates that the initiatives announced on the 19th of August 2025, including efforts to reduce CAC, create more efficient R&D units, optimize resource management, and refine customer-success and product-planning processes, will result in personnel costs of approx. SEK 79.1m in 2026 and SEK 71.4m in 2027, compared with SEK 113.2m in 2024.
It is encouraging to see solid momentum in terms of contract wins, especially when coupled with the ongoing execution of streamlining initiatives. However, we view these measures as crucial to reducing the burn rate and creating a cost base that is better aligned with the current level of net sales. Consequently, we still regard securing a sustainable long-term financing solution as the key value driver going forward, as this would allow the Company to focus more fully on growth initiatives.
IRIS+™ Enterprise Software Selected for C5i 911 Center in a Central Mexican State
On the 22nd of September 2025, Irisity announced that the Company, together with partner Seguritech, has won a competitive takeover to supply its IRIS+ Enterprise AI platform to a C5i 911 emergency operations center in a central Mexican state. The first phase covers 400 cameras and a two-year support agreement valued at SEK 2.6m, with deployment planned for Q3-25. The project replaces a legacy Windows-based AI system and allows the customer to reuse existing CCTV infrastructure, avoiding costly hardware upgrades. This marks the first step in a planned multi-phase rollout and illustrates a broader trend of customers favoring scalable, cloud-based enterprise platforms over site-based or hardware-driven solutions.
U.S. Federal Agency Expands Its AI Installation of IRIS+ Enterprise
One of Irisity’s current customers, a U.S. federal agency, has expanded its AI installation of IRIS+ Enterprise with a fifth surveillance site, alongside a one-year extension for the existing four locations. The deal, valued at SEK 1.6m ARR, of which SEK 1.2m was recognized as revenue in Q3-25, marks the fourth consecutive year of cooperation with this customer. Due to strict IT-security requirements, the software was customized to meet the agency’s specifications and to run on Red Hat Linux instead of the Company’s usual Ubuntu platform.
Consolidation of R&D Operations in Tel Aviv into Sweden
Irisity also announced a consolidation of the Company’s R&D operations, moving activities from Tel Aviv to Gothenburg, Sweden, and transferring embedded AI development to Budapest. This initiative is part of the previously disclosed cost-reduction program (19th of August 2025), which targets a 30% OPEX reduction based on Q2-25 cost levels. Management expects the savings to be implemented during Q3 and Q4-25, with estimated annual savings of SEK 40m once fully realized by the end of Q1-26.
Project Within New York’s Transport Sector and Extension of Software Support
On the 15th of September 2025, Irisity reported a substantial project expansion in New York’s transport sector, including an extension of a three-year software support agreement. The project, valued at approx. SEK 6m over three years, will be delivered during Q3/Q4-25, with SEK 1.5m recognized as net sales starting in Q3-25. It involves delivery of Irisity’s video analytics platform IRIS+™, hardware, and support services to secure bridges and tunnels. The goal is to reliably strengthen safety protocols and reduce potential risks for heavily trafficked commuter routes.
In summary, Analyst Group believes that the recent contract wins demonstrate Irisity’s strengthening position within U.S. public-sector and infrastructure markets, while the new Mexican C5i project highlights both international expansion and long-term growth potential. At the same time, the consolidation of R&D resources should support a leaner cost base and improved scalability. Successful execution of the cost-savings program, together with securing a sustainable long-term financing solution, remain key catalysts going forward and will be essential for restoring investor confidence.
