Flytech boosts its profit with AI demand and edge computing

Flytech Technology closed Q2 2026 with strong business growth and improved profitability, supported by demand for commercial computing systems, POS equipment, Box PCs, and increasing contributions from its software and AI businesses. The Taiwanese company reached NT$1.882 billion in revenue between April and June, a 38% increase compared to a year earlier and 25% above the first quarter. This marks the second-largest quarterly sales volume in its history.

Key Highlights of Flytech’s Results in 20 Seconds

  • Q2 revenues totaled NT$1.882 billion, up 38% year-over-year.
  • Growth was mainly driven by Americas, Box PCs, new payment terminals, and other commercial systems.
  • Berry AI approximately tripled its year-over-year revenue during the first half of the year.
  • Flytech is combining hardware, edge computing, and software to increase the value of each installation.
  • The improved product mix is helping sustain high margins.

This result also confirms that Flytech is moving away from reliance solely on its traditional POS terminal business. The company has been expanding its catalog over the past years to include self-service systems, industrial computers, Box PCs, payment devices, and edge computing platforms, while developing a secondary line around software and computer vision.

This shift is increasingly reflected in its financial statements.

Cumulative revenue for the first half reached NT$3.392 billion, roughly 25% more than the same period in 2025. In June alone, it billed around NT$610 million, a 26% increase YoY. The company had previously indicated in Q1 that order visibility was improving and that its manufacturing capacity was operating at high levels.

From POS Terminals to Bringing Computing Power to Stores

A significant part of this growth stems from a trend happening away from large AI data centers.

Retailers, restaurants, hospitals, and public service venues increasingly need physically installed computing capacity on-site. Smart cameras, image recognition, ordering and payment systems, digital signage, and automation apps generate loads that are not always practical to send continuously to the cloud.

Flytech aims to capitalize on this trend.

Founded in 1984 and historically focused on POS terminals, Flytech has progressively expanded into what it calls on-premise computing. Its current catalog ranges from POS terminals and self-service kiosks to Panel PCs, embedded systems, and Box PCs.

Box PCs were among the categories with the highest volume in the first half of 2026. Purchases of Panel PCs for the medical sector also increased.

Adding to this, a new family of Payment POS terminals now integrate payment functions directly, allowing Flytech to increase the technological content sold per store.

In June, the company confirmed these devices support NFC for contactless payments and various card modules. Its strategy is to increase the number of devices supplied within each store.

This represents a major change. Flytech is no longer just selling the terminal next to the cash register but aims to provide part of the IT infrastructure behind store operations.

Berry AI Turns Artificial Intelligence into a Recurring Business

Another growth driver is in its software subsidiaries.

Over recent years, Flytech has created three companies with distinct functions: Berry AI, mainly focused on vision AI for restaurants; Inefi, dedicated to unified device management; and Angible, aimed at visual recognition for retail.

Though still a small part of the overall business compared to hardware, their evolution helps clarify Flytech’s future direction.

In 2025, these three subsidiaries combined increased their share from about 0.1% of group revenue in 2023 to around 2%. Flytech previously announced that their annual revenue exceeded NT$100 million for the first time.

In the first half of 2026, this progression continued.

Inefi and Angible surpassed their total 2025 revenues in just six months. Meanwhile, Berry AI roughly tripled its revenue compared to the same period last year, according to financial reports from Taiwan.

Berry AI also has a notably significant project in the U.S.

The company secured Culver’s, a restaurant chain with over 1,000 locations, as a client. The project involves deploying Vision AI solutions across the U.S. after an earlier implementation with Zaxby’s. Flytech hopes these contracts will generate recurring revenue rather than relying solely on one-time hardware sales.

This is a key aspect of its financial strategy.

Manufacturing a terminal generates revenue on device sales. Adding management, analytics, or AI services afterward creates an ongoing revenue relationship throughout the product’s lifecycle.

Margins Reflect Flytech’s Transformation

Early signs of this shift appeared in the first quarter.

Between January and March, Flytech reported NT$1.510 billion in revenue, an 11% increase YoY. Gross margin reached 45.6%, up from 44.6% a year earlier, with operating profit at NT$424 million.

Operating margin stood at 28.1%, with pre-tax profit at NT$443 million. EPS was NT$2.51, the highest quarterly figure recorded by the company.

Comparing with previous years shows a clear upward trend. Flytech’s gross margin was 34.8% in 2020, 38.7% in 2023, 43.6% in 2024, and 44.1% in 2025. Operating margin rose from 15.8% in 2020 to 25.1% in 2025.

Not all of this enhancement is due to AI. Flytech has worked on cost efficiencies, shared components, standardized modules, and higher value-added products.

However, software can reinforce this trend if it grows its share of total revenue.

In May, the company indicated that economies of scale from its software subsidiaries should increasingly contribute to consolidated gross margins. At that time, it also noted high order volumes and increased inventories of CPUs, RAM, and storage to mitigate supply risks and price hikes.

AI’s Growth Extends Outside Data Centers

Flytech exemplifies another aspect of current AI investment cycles.

While most attention centers on Nvidia, GPUs, data centers, and huge investments from hyperscalers, an entirely different market exists: bringing inference and processing to restaurants, stores, factories, hospitals, and other physical locations.

In these environments, massive accelerators costing tens of thousands of euros are not always necessary.

A small industrial PC can process camera images, run self-service controls, execute commercial apps, or simply send the essential data to cloud services.

For traditional manufacturers of industrial computers like Flytech, this transition opens opportunities to sell more powerful equipment and, crucially, bundle it with software.

Currently, most of Flytech’s revenue still comes from hardware. So, it’s premature to call it an AI company. Yet, the numbers show a gradual shift from POS hardware manufacturer to a provider of business terminals, edge computing, and software services.

The NT$3.392 billion revenue in the first half of 2026 indicates that hardware remains its main scalable business. Meanwhile, Berry AI, Inefi, and Angible represent a smaller but potentially more recurring and higher-margin dimension.

This blend explains why Flytech’s results are significant beyond just quarterly growth. The company aims to turn millions of installed devices into points from which to sell computing, management, and AI services.

Frequently Asked Questions

How much did Flytech earn in the second quarter of 2026?

Flytech reported NT$1.882 billion in revenue, a 38% increase from a year earlier and 25% above the first quarter. This was the second-largest quarterly sales volume in its history.

What is Flytech’s role in artificial intelligence?

Beyond hardware manufacturing, Flytech owns subsidiaries like Berry AI, focused on vision AI solutions for restaurants. It also manages Inefi for device management and Angible for visual recognition applications.

What is Berry AI?

A Flytech subsidiary dedicated to vision AI applications. Notably, it is deploying technology in over 1,000 Culver’s locations in the U.S.

Has Flytech stopped making POS terminals?

No. POS systems, kiosks, and other commercial equipment remain central to its business. However, Flytech is expanding into Box PCs, payments, edge computing, and software to strengthen its presence within each store.

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