REG - Eagle Eye Solutions - H1 FY26 Trading Update and Notice of Results

Eagle Eye SolutionsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260120:nRST5113Pa&default-theme=true

RNS Number : 5113P  Eagle Eye Solutions Group PLC  20 January 2026

20 January 2026

 

Eagle Eye Solutions Group plc

("Eagle Eye", the "Group", or the "Company")

 

H1 FY26 Trading Update and Notice of Results

Full year FY26 profits expected to be ahead of current market expectations

Increased win rate, first OEM contracts signed and strong margin recovery in
H1

 

Eagle Eye (LSE: "EYE"), a leading SaaS and AI technology company that creates
digital connections enabling personalised, real-time marketing at
scale, provides an update on the Group's trading for the six months ended 31
December 2025 ("H1 FY26" or the "Period").

 

Overview

 

The Group has delivered strong progress against each of its strategic
objectives and a financial performance for H1 FY26 ahead of the Board's
expectations. As a result, the Board now believes that the Group will deliver
adjusted EBITDA for full year FY26 comfortably ahead of current market
expectations*.

 

ARR is rebuilding strongly, with ARR added in H1 FY26 exceeding that achieved
in the entirety of the prior year. Following investment into the Sales
organisation, the number and value of new customers won in the first half of
the year have considerably improved, particularly in North America. Alongside
this progress, the first contracts via the transformational global OEM
agreement have been signed, in line with the Board's anticipated timing.

 

H1 margin performance has exceeded the Board's expectations due to the Group's
ongoing SaaS transformation and cost optimisation. This will allow the Board
to upgrade profit expectations, while continuing to selectively invest in
growth initiatives during Q3. The Board continues to expect to exit FY26 with
a 20% EBITDA margin run rate.

 

H1 Financial Summary

                                  H1 FY26  H1 FY25  % change
 KPIs excluding NRS**
 Annual Recurring Revenue         £42.2m   £32.8m   29%
 Group Revenue                    £22.4m   £19.3m   16%
 SaaS Revenue                     £19.1m   £15.4m   24%

 KPIs including NRS
 Annual Recurring Revenue         £42.2m   £41.0m   3%
 Group Revenue                    £23.0m   £24.2m   (5)%
 SaaS Revenue                     £19.7m   £19.5m   1%
 SaaS Revenue % of Group Revenue  86%      81%      +5ppts
 Adjusted EBITDA                  £4.3m    £5.9m    (28)%
 Adjusted EBITDA(***) margin      18%      24%      (6)ppts
 Net cash at 31 December(****)    £12.1m   £11.7m   3%

 

Notes

* In so far as the Board is aware, as at 19 January 2026, consensus market
expectations for FY26 were for Revenue of £45.1m, and adjusted EBITDA of
£5.9m.

** Excluding the revenues related to the Neptune Retail Solutions' ("NRS")
related contract lost in June 2025.

*** EBITDA has been adjusted for the exclusion of share-based payment charges
along with depreciation, amortisation, interest, restructuring costs and tax
from the measure of profit.

**** Net cash is stated after investment of £0.6m in share buybacks.

 

Highlights

 ·             The increased number and value of Wins and Deepening of customer engagements
               have delivered 3% growth in ARR to £42.2m, representing 29% growth in
               Underlying ARR excluding the impact of the NRS-related contract loss,
               supporting a return to double digit revenue growth in future periods.
 ·             Underlying Group revenue, excluding NRS, grew by approximately 16%,
               incorporating 20% EagleAI revenue growth. Group revenue for the Period was
               £23.0m (H1 FY25: £24.2m).
 ·             First contracts secured via the global OEM agreement, expanding the Group's
               reach into new sectors, and increasing Group ARR; material revenue generation
               remains on track from FY27.
 ·             Further reduction in operating costs has driven margin performance ahead of
               expectations, providing the ability to selectively increase investment in H2
               FY26, whilst maintaining exit run rate margin guidance.
 ·             Increasing use of AI across the business, supporting further operational
               efficiencies.
 ·             The Group was cash generative in the Period with strong cash collection of
               customer receipts at Period end.

 

Outlook

 ·             The significant Wins in H1, pleasing ARR growth, strong first half performance
               and ongoing cost optimisation initiatives provide the Board with confidence
               that the Group will deliver adjusted EBITDA for full year FY26 comfortably
               ahead of current market expectations*.
 ·             The Board continues to expect to exit FY26 with a 20% EBITDA margin run rate,
               and is confident that the momentum being achieved in North America, Asia and
               with the OEM will support a return to double digit revenue and EBITDA growth
               in FY27.

 

Tim Mason, Chief Executive of Eagle Eye, said:

 

"We entered this new financial year with a new sales structure following
investment in this area which is delivering results. The business has achieved
double digit revenue growth, excluding NRS, and our financial foundations have
been strengthened through cost optimisation initiatives. The strength of our
ARR and margin recovery means we have raised our adjusted EBITDA expectations
for FY26, and will selectively increase investment into the business, to
ensure we capitalise on the growing, global demand for AI-powered loyalty and
personalisation, while delivering on our commitment to margin progression.

 

"Major new retailers have selected our offerings, with particularly strong
progress in North America, and the first customers have been secured via the
OEM agreement within weeks of launch, taking us into new sectors,
demonstrating the potential from this transformational opportunity. As a
result of this strong progress we look to the second half of the year and
beyond with growing excitement and confidence."

 

 

H1 Financial and Operational performance

 

Win momentum, further Deepening, and first OEM contracts

 

Win & Deepen

 

The Group has delivered a considerable uplift in ARR in H1 FY26, with new ARR
exceeding that achieved in the entirety of the prior year.

 

Multi-year contracts for the AIR platform and EagleAI solutions were secured
with eight major customers in the Period, being:

·      A three-year contract with a leading European value retailer

·      A three-year contract, with a two-year extension option, with
Central Thailand

·      A three-year contract with a UK builders' merchant

·      A five-year contract with one of the largest independent North
American food retailers

·      A three-year contract with a large regional US grocery
supermarket

·      A multi-year contract with Wakefern, the largest retailer-owned
cooperative in the US

·      A three-year agreement with Kwik Trip, a US convenience store
chain

·      A three-contract with FairPrice Co-Operative Ltd in Singapore, a
returning customer

 

The Group has also continued to deepen its engagement with existing customers,
including Giant Eagle in North America and PepCo in EMEA.

 

OEM progress

 

The OEM's new cloud hosted loyalty management solution was released onto its
price list at the start of November 2025. Since then, the partner has closed
deals with two blue-chip European retailers: one of the largest furniture
retailers globally, with over 500 stores and a significant presence in Europe;
and a prominent retail group in the DACH region, with over 2,000 locations.

 

The OEM partner contract is transactional and therefore ARR is an estimate.
The Group expects the ARR of these combined clients to be c.£2.0m initially,
derived from customer numbers and volumes based on experience, and
revenue-generating from FY27. This estimated amount is included in Period end
Group ARR stated above.

 

A strong financial performance

 

The Group exited the Period with strong ARR growth to £42.2m (30 June 2025:
£34.0m). Underlying organic ARR, excluding the Neptune Retail Solutions'
("NRS") related contract loss as announced in June 2025, grew approximately
29% compared to 31 December 2024, driven by new Win ARR and deepening of
existing relationships with increased volumes seen with Morrisons, Asda and
Carrefour.

 

Group revenue excluding the NRS loss increased 16% to £22.4m (H1 FY25:
£19.3m) aided by SaaS and transaction revenue growth of 24% to £19.1m (H1
FY25: £15.4m), offsetting the impact of the NRS-related loss which saw
headline Group revenue fall slightly to £23.0m (H1 FY25: £24.2m).

 

The Group has sought out further cost efficiencies to mitigate against the
impact of the loss of the high-margin NRS contract, delivering adjusted
EBITDA of approximately £4.3m, (H1 FY25: £5.9m). This represents an
adjusted EBITDA margin of 18% (H1 FY25: 24%).

 

The Group was cash generative in the Period with strong cash collection of
customer receipts at Period end. The Group closed the Period with a net cash
position of £12.1m (31 December 2024: £11.7m), after having returned £0.6m
in share buybacks.

 

Notice of results

 

The Group expects to announce its results for the six months ended 31 December
2025 on 17 March 2026.

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. The person responsible for arranging
release of this announcement on behalf of Eagle Eye is Lucy Sharman-Munday,
Chief Financial Officer.

 

Enquiries:

 

 Eagle Eye Solutions Group plc                               Tel: 0844 824 3686
 Tim Mason, Chief Executive Officer
 Lucy Sharman-Munday, Chief Financial Officer

 Investec Bank plc (Nominated Adviser and Joint Broker)      Tel: +44 20 7597 5970
 David Anderson / Nick Prowting / James Smith

 Shore Capital (Joint Broker)                                Tel: +44 20 7408 4090
 Corporate Advisory: Daniel Bush, David Coaten, Lucy Bowden
 Corporate Broking: Henry Willcocks

 Alma Strategic Communications                               Tel: +44 20 3405 0205
 Caroline Forde, Hannah Campbell, Kinvara Verdon

 

About Eagle Eye

 

Eagle Eye is a leading SaaS and AI company, enabling retail, travel and
hospitality brands to earn lasting customer loyalty through harnessing the
power of real-time, omnichannel and personalised marketing. Our powerful
technology combines the world's most flexible and scalable loyalty and
promotions capability with cutting edge, built-for-purpose AI to deliver 1:1
personalisation at scale for enterprise businesses, globally.

 

Our growing customer base includes Loblaws, Southeastern Grocers, Giant Eagle,
Asda, Tesco, Morrisons, JD Sports, E.Leclerc, Carrefour, the Woolworths Group
and many more. Each week, more than 1 billion personalised offers are
seamlessly executed via our platform, and over 700 million loyalty member
wallets are managed worldwide.

 

AI-powered, API-based and cloud-native, Eagle Eye's enterprise-grade
technology is fully certified by the MACH Alliance and has received
recognition from leading industry bodies, including Gartner, Forrester, IDC
and QKS.

 

Web - www.eagleeye.com
(https://protect.checkpoint.com/v2/r02/___http:/www.eagleeye.com/___.YXAxZTpzaG9yZWNhcDpjOm86N2Y1MGM0ZmY0NDE4MTgzMzFjMjJmY2UyYmQyYzZjZGY6NzpkZjk0OmUwODZhZTRkNmYzZjgwOGY5YzM2ZGFhMzkwNTc1YmMyYmNlNDM0ZjFmYTQyZmFjZDNjZmNmNDY0YWEyNzUxODI6cDpGOk4)
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSFAEFUEMSESF



            Copyright 2019 Regulatory News Service, all rights reserved