Artificial Intelligence Technology Solutions, Inc. (AITX) announced on August 11, 2025, its outlook for the second quarter of fiscal year 2026, which ends on August 31, 2025. The company expects to report net profitability for the quarter, primarily driven by a significant one-time accounting gain from a recent debt settlement.
AITX successfully settled more than $4.5 million in legacy debt for less than 10% of the balance owed. This decisive action is anticipated to be the key factor in achieving net profitability for the quarter and substantially strengthens the company's balance sheet by reducing its overall debt burden.
This financial news follows strong operational results reported in the company's Q1 FY2026 filing, which included a 57% increase in revenue and an 80% increase in gross profit compared to the same period in the prior year. CEO Steve Reinharz stated that this debt settlement is a crucial step in strengthening the financial foundation, with management remaining focused on generating consistent, long-term operational profitability through high-margin recurring revenue streams.
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