AI-Media's Withdrawn Targets Trigger a Credibility Crisis

A promising AI transition story unravelled after the board scrapped its long-touted FY29 targets, leaving one long-time holder calling the business uninvestable.

31 Mar 2026 · 4 min read

AI-Media Technologies rallied strongly on its shift from human-based captioning services to an AI-powered LEXI platform, delivering strong FY25 results and 35 percent ARR growth guidance, before the board withdrew its FY29 aspirational revenue and EBITDA targets in February, sending the stock down nearly 40 percent in a single day and prompting one long-time holder to declare it uninvestable.

A genuine AI transition story with early momentum

Endeavor Asset Management said it initiated a position, describing a company reshaping captioning and subtitles for broadcasters and video platforms, shifting from human services and hardware to an AI-led SaaS model centred on its LEXI platform, delivering automated translation at a fraction of the cost of human solutions while improving uptime and accuracy, supporting margin expansion from around 40 percent toward 80 percent as software scales. Wilson Asset Management said the company benefited from its AGM webcast featuring a live demonstration of LEXI Voice, an AI-powered real-time multilingual translation product. Cyan Investment Management said it saw brilliant early returns, up 56 percent, following an FY25 report detailing strong upticks in tech revenues, hardware sales and deployed encoders, describing the company at a major inflexion point as its AI technology became more accurate and efficient than prior human-involved processes. NorthStar Impact Funds described AI-Media as a leader in complex workflow orchestration and automation delivering AI solutions in text and voice translation, providing strong guidance with ARR up 35 percent in FY26 and a pathway toward a $150 million revenue and $60 million EBITDA target for FY2029, fully in global expansion mode having added 23 new countries in FY25 to reach a footprint of 36 countries.

AI Media provided strong guidance with ARR +35% in FY26 and a pathway towards a $150mn revenue and $60mn EBITDA target for FY2029. AI Media is now fully in global expansion mode with 23 new countries added in FY25, taking their global footprint to 36 countries.

— NorthStar Impact Funds, Monthly Report, September 2025

A withdrawn target triggers a collapse

Cyan Investment Management said the stock fell 43 percent, describing a jumble of outcomes, with annual recurring revenue up 80 percent to $30 million but revenue down 6.4 percent to $29.8 million as the company wound back its human-dependent subtitling services, with the most concerning development being the board withdrawing its arguably optimistic FY29 aspirational target. Tamim Funds Management called it one of the worst updates in its portfolio, with the business reporting an EBITDA loss as management pivoted to invest during the half, alongside a complete pivot away from the previously stated $150 million revenue and $60 million EBITDA target for FY29, replacing it with a new ARR metric as the key KPI, with delayed product releases cited as a main excuse. Merewether Capital said the share price plummeted nearly 40 percent on the day of reporting, with revenue down 6 percent to $29.8 million and a net loss before tax growing from $1.3 million to $3.6 million, its saving grace being that it had already taken profits on a share price that had nearly tripled from its original entry before completely round-tripping on the exit of its small final parcel. Endeavor Asset Management said the disappointing December interim results followed a strong FY25 result the market had expected to continue, with first-half revenue slightly below expectations and underlying EBITDA materially below, as strong hardware sales from FY25 failed to continue, alongside the withdrawal of the FY29 aspirational targets.

The share price plummeted nearly 40% on the day of reporting. The saving grace was that we did take profits on a share price that nearly tripled from our original entry but completely round-tripped back for the exit of our small final parcel.

— Merewether Capital, Monthly Report, February 2026

Declared uninvestable amid shifting metrics

Merewether Capital said the business had become un-investable, as it is nearly impossible to accurately forecast its future given management continues to change its operating strategies and reporting metrics, adding that management and the board have always presented information to the market in the best possible light.

From an investment point of view the business has become un-investable as it is nearly impossible to accurately forecast the future as management continue to change their operating strategies and reporting metrics.

— Merewether Capital, Investor Update, February 2026

What fund managers say they are watching next is whether the new ARR metric provides more reliable tracking of the business's genuine trajectory, delivery of the delayed new product releases, whether hardware sales stabilise, and whether management rebuilds credibility after withdrawing its long-touted FY29 targets.