Xiao‑I Corporation announced that it has renewed its contract with a prominent Sino‑European automotive joint venture for its iBot Pro intelligent dialogue robot and Smart Voice Customer Service solutions. The renewal extends 24/7 instant support, reduces handle time for routine queries, and frees human agents to focus on higher‑value interactions, creating substantial annual cost savings for the joint venture.
The contract renewal is a key part of Xiao‑I’s strategy to secure recurring revenue, but the company remains in a precarious financial position. In 2024, Xiao‑I reported revenue of $70.31 million, up 18.8% year‑over‑year, while net loss widened to $14.55 million and earnings per share fell to –$1.68. Liquidity ratios are below one, with a current ratio of 0.88 and a debt‑to‑equity of –3.76, underscoring ongoing cash‑flow constraints.
CEO Hui Yuan said the company is trimming research and development spend to improve margins and move toward profitability in 2025. The focus on cost discipline is intended to offset the company’s high operating expenses and support the transition from a loss‑making to a profit‑generating model.
While the renewal provides a stable revenue stream and signals client confidence, it does not fully offset the broader financial challenges. Xiao‑I’s low market capitalization, persistent net losses, and liquidity concerns mean that the renewal is a positive but limited development in the context of the company’s overall trajectory.
Investors remain cautious, viewing the renewal as a modest win amid a backdrop of financial distress and a need for sustained margin improvement to achieve long‑term viability.
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