Brand Engagement Network Inc. (BNAI) entered into a Vendor Services Project Agreement on December 19, 2025, and announced the deal on December 29, 2025. The agreement is with a leading global advertising and communications agency to develop a custom AI engagement solution for a top‑10 global pharmaceutical client. The project will generate $250,000 in development revenue for BNAI in the fourth quarter of 2025 and is expected to produce recurring license fees beginning in the first quarter of 2026.
Historically, BNAI’s recurring revenue has been negligible – only about $5,000 in Q2 2025 and $75,120 in trailing twelve months as of September 30, 2025. This new contract therefore represents the company’s first substantial recurring revenue stream and a major milestone in its transition from project‑based work to a subscription‑style model.
Strategically, the deal places BNAI deeper into the high‑margin pharmaceutical sector, a vertical that has been a core focus for the company. By partnering with a major ad agency, BNAI gains access to a large, regulated customer base and a channel that can accelerate adoption of its secure, conversational AI platform across the industry. The partnership also signals confidence from a top‑tier pharma client, potentially opening the door to further engagements in healthcare and life‑sciences markets.
The $250,000 development fee provides a near‑term cash‑flow boost for Q4 2025, while the recurring license fees that will begin in Q1 2026 offer predictable, long‑term revenue that can help improve margins and reduce cash burn. Tyler Luck, BNAI’s acting CEO, said the agreement “underscores the company’s expanding footprint in healthcare, where its platform delivers trusted, secured, and efficient AI for pharmaceutical manufacturers, healthcare providers, and patients.”
Market reaction to the announcement was strong, with BNAI’s shares surging between 20% and 48% in pre‑market trading on December 29, 2025. Investors were drawn to the immediate revenue visibility and the long‑term growth potential implied by the recurring license fee stream, reflecting confidence in BNAI’s technology and its strategic positioning in a high‑growth sector.
Looking ahead, BNAI continues to focus on healthcare AI, having launched Skye Salud in Mexico and secured a Latin American licensing partnership. While the company still faces negative operating margins and a significant cash burn, the introduction of a recurring revenue stream marks a critical step toward financial stability and positions BNAI to scale its platform across regulated markets.
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