Sagtec Global CEO Declares "Pivotal Inflection Point" in Year-End Letter, Citing AI Partnerships and Multi-Million Dollar Contracts as Launchpad for 2026

KUALA LUMPUR, Malaysia, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ:SAGT), a leading provider of AI-driven technology solutions across Southeast Asia, today released a year-end shareholder letter from Chairman and Chief Executive Officer Kevin Ng, highlighting the Company's strategic transformation, triple-digit financial growth, and outlook for accelerated expansion in 2026.

Letter to Shareholders from Kevin Ng, Chairman and CEO:

Fellow shareholders,

As we approach the end of 2025, I am writing to update you on a year of transformative growth and to share our strategic vision for the year ahead. We believe the momentum we have built over the last twelve months has positioned Sagtec Global for a promising 2026, and we are eager to welcome both our loyal long-term investors and new shareholders to this next chapter of our journey. We view 2025 as the year we successfully built our foundation, transitioning from a Malaysia‑led POS provider into a profitable regional AI solutions company. The milestones we achieved this year are not the finish line; they are the launchpad for what we anticipate will be a year of accelerated expansion and value creation. This update summarizes the decisive steps we have taken and why the Board and management are more confident than ever as we head into the new year.

Financial Momentum Heading into 2026

First, our financial performance for the nine months ended September 30, 2025, demonstrates that our model scales. Revenue for the period reached approximately USD 15.1 million, an increase of about 97% compared to the same period in 2024. This top-line expansion was broad-based, led by a 135% surge in tangible product revenue and a 79% increase in services revenue. Net profit rose to approximately USD 2.6 million, up about 226% year over year, resulting in Earnings Per Share (EPS) of $0.20, compared to $0.07 in the prior year. EBITDA improved to roughly USD 3.6 million, an increase of about 139%. These results show not only growth but also meaningful operating leverage and disciplined cost management following our IPO.

The AI Engine for Future Growth

Our partnership with Kinetic Seas has become a cornerstone of Sagtec's AI strategy for 2026 and beyond. In August 2025, we entered into a strategic licensing agreement to integrate the Skilliks AI platform into our offerings. In November 2025, we executed an addendum that elevated Kinetic Seas to our exclusive AI development and technology partner for Malaysia, Indonesia, Singapore, and the Philippines, aligned by the issuance of 5.5 million Class A ordinary shares and a 70/30 revenue‑sharing model in favor of Sagtec on gross receipts from AI projects. Together, these agreements give Sagtec immediate access to a production‑grade AI stack and a large global AI talent community, without the time and capital required to build an equivalent capability in‑house.

Tangible Wins & Pipeline

Importantly, this relationship is already translating into tangible business. Under the expanded framework, Sagtec has secured a digital transformation contract of approximately USD 3 million with Malaya Heritage Holdings to modernize food and beverage operations with AI automation and smart analytics. In addition, we have signed an AI‑powered SaaS platform development agreement of approximately USD 1 million with HM Edutech Group, which includes a long‑term recurring revenue‑sharing component. Both contracts exemplify the kind of higher‑value engagements our AI capabilities now support, and they sit on top of our existing subscription base rather than replacing it.

New Verticals for the New Year

The HM Edutech partnership also marks Sagtec's formal entry into the financial analytics and education technology space. Together with HM Edutech and TP Trader Academy, we are developing the HMS Data Analysis System, an AI‑powered SaaS platform designed for institutional and retail users, with launch targeted for the second quarter of 2026. Sagtec expects approximately USD 1 million in upfront development revenue from this project, along with profit‑sharing tied to SaaS subscriber growth, positioning us for scalable recurring revenue in a market that third‑party research estimates will grow from USD 7.6 billion in 2020 to USD 19.8 billion by 2030. This initiative aligns directly with our long‑term goal of building a diversified portfolio of AI‑driven SaaS revenues across multiple verticals.

Balance Sheet Strength

From a balance sheet perspective, we have continued to invest while improving our liquidity. For the nine months ended September 30, 2025, net cash generated from operating activities was approximately USD 1.9 million, compared to around USD 0.8 million in the prior‑year period, reflecting stronger underlying cash generation. During the same period, we invested approximately USD 6.1 million in plant, equipment, and software licenses and raised approximately USD 4.5 million from financing activities, resulting in a shift from a cash deficit of about USD 353,000 at the beginning of the period to a positive cash balance of roughly USD 313,000 at September 30, 2025. These moves underpin our capacity to fund ongoing AI development and regional expansion while maintaining financial discipline.

2026 Outlook & Valuation Perspective

Looking ahead, we see a substantial opportunity at the intersection of our existing Speed and kiosk ecosystem and the AI capabilities enabled by Kinetic Seas and our new partners. Industry research cited in our recent announcements indicates that the AI software market across Malaysia, Indonesia, Singapore, and the Philippines is expected to grow at a compound annual growth rate of about 34% through 2030, representing over USD 6 billion in new SME‑focused opportunities. Within this backdrop, Sagtec has outlined internal targets for FY 2026 AI solutions revenue in the range of approximately USD 12–15 million and a three‑year cumulative revenue impact of about USD 40–50 million by 2028 related to our Kinetic Seas alliance. While these are forward‑looking statements and subject to risk, they reflect our conviction that Sagtec is now positioned as an AI co‑creation partner to both enterprises and SMEs across the region.

We believe we are at a critical inflection point in Sagtec's evolution. We have delivered triple‑digit profit growth, secured multi‑million‑dollar AI contracts with marquee partners, and demonstrated operating leverage across our existing subscription base—yet we believe the market has not yet fully appreciated the magnitude of this transformation. We are confident that as we execute on this high‑margin AI pipeline and advance toward our 2026 and 2028 targets, our intrinsic value will become increasingly evident to the broader investment community. This is not speculation; it is grounded in the real contracts we have signed, the partnerships we have structured with aligned incentives, and the recurring revenue models we are embedding into our business.

Our commitment to you is straightforward: to grow Sagtec in a manner that is disciplined, data‑driven, and grounded in real execution rather than speculation. The progress reported here—profitable growth, deepened AI partnerships, named multi‑million‑dollar contracts, and entry into new SaaS verticals—comes from deliberate choices aligned with that commitment. On behalf of the Board, I want to wish our shareholders a prosperous year ahead. We look forward to executing on this vision together in 2026.

Sincerely,

Kevin Ng

Chairman and Chief Executive Officer

Sagtec Global Limited

About Sagtec Global Limited

Sagtec Global Limited (NASDAQ:SAGT) is a leading provider of AI-driven technology solutions, cloud-based ordering systems, and customizable software platforms across Southeast Asia. The Company empowers over 13,000 businesses with tools to enhance efficiency, automation, and market competitiveness through its flagship Speed POS system, AI-powered analytics, and strategic partnerships. For more information, please visit www.sagtec-global.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding future financial performance, business strategies, expansion plans, and anticipated market opportunities. These statements involve known and unknown risks, uncertainties, and other important factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Sagtec Global Limited undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Contact Information

Sagtec Global Limited

Zainab Fateema binti Mustafa

Head of Public Relations & Corporate Affairs

Telephone: +60 11-6217 3661

Email: [email protected]