My thoughts on their quarterly:

They provided guidance at the beginning of the year of expected $24-26M revenue, and signs show they appear on track to hit this. 

Additional good news during the quarter was the value of the Defence pilot order increasing from ~$1M to ~$2 million. That’s not a small pilot and having Defence as a client is always a strong social proof. 

What remains unclear to me with Vection is when realistically we could expect operational leverage from them. We see from the cashflow report that dollars spent on product manufacturing & operating costs nearly equaled incoming cash ($5,504,000 vs$ 5,674,000).

They would be developing a lot of customisation in these training workflows which can likely keep operating costs high for a while. This is in part what led to the $3M cash burned in the quarter. The market would be questioning if the $11M cash left will be sufficient to reach large enough milestones before a cap raise is necessary. 

What they do remains very interesting, and with use cases exploding, I wouldn’t be surprised to see them deliver more good news in the next few years, so I’ll keep close tabs on them. 

Source: Commented on them alongside 4 other reports in my Substack this week.