REG - Eagle Eye Solutions - Half Year Results
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RNS Number : 8624W Eagle Eye Solutions Group PLC 17 March 2026
17 March 2026
Eagle Eye Solutions Group PLC
("Eagle Eye", the "Group" or the "Company")
Half Year Results for the six months ended 31 December 2025
Strong execution and new customer Win momentum delivered a financial
performance ahead of initial H1 2026 expectations
Eagle Eye, a leading provider of applied AI for marketing, enabling
personalised, real-time engagement at scale, is pleased to announce its
unaudited interim results for the six months ended 31 December 2025 (the
"Period" or "H1 2026").
Financial Highlights
H1 2026 H1 2025 Change
KPIs excluding NRS(1)
Period end Annual Recurring Revenue(2) £42.2m £32.8m +29%
Net Revenue Retention(3) 108% 104% +4ppts
Group Revenue £22.4m £19.3m +16%
Recurring Revenue £19.1m £15.4m +24%
KPIs including NRS
Group revenue £23.0m £24.2m -5%
Recurring Revenue £19.6m £19.5m +1%
Professional Services Revenue £3.0m £4.4m -32%
SMS Revenue £0.4m £0.3m +55%
Recurring revenue % of Group revenue 85% 81% +5ppts
Period end Annual Recurring Revenue(2) £42.2m £41.0m +3%
Net Revenue Retention(3) 99% 104% -5ppts
Direct profit(4) £16.2m £16.9m -4%
Adjusted EBITDA(5) £4.3m £5.9m -28%
Adjusted EBITDA margin 18% 24% -6ppts
Profit after tax £0.1m £1.9m -93%
Net cash(6) at 31 December £12.1m £11.7m +3%
Strategic Highlights
ARR building strongly, underpinned by an acceleration in new Win momentum and
Deepening with existing customers
· Underlying ARR up 29%, with new ARR in H1 2026 exceeding the entirety of the
prior year new ARR
· Eight new multi-year contracts secured for the AIR platform and EagleAI
solutions with major customers globally, with strong traction across grocery,
convenience and retail verticals
· Deepening activity with existing customers with increasing ARR through higher
volumes, expanded use cases and additional product adoption, with AI
Personalised Promotions a key driver
Capitalising on the substantial US opportunity
· Four significant wins in H1 2026, delivering c.£2.5m new ARR with further
expansion opportunity, reflecting the strengthening of Eagle Eye's brand
presence and success of refined go-to-market initiatives
· Continued investment in US sales capability to strengthen brand presence and
further build the pipeline
AI strengthening Eagle Eye's market opportunity and commercial momentum
· EagleAI revenues up 23% to £3.6m (H1 2025: £2.9m); now represents 15% of
Group revenues (H1 2025: 12%)
· Integration of EagleAI and AIR is delivering value to early adopter customers
via AI Personalised Promotions, expanding Eagle Eye's Win and Deepen
opportunity
Transformational OEM agreement progressing well, with first customers secured
· First two customer contracts secured through OEM partnership, with blue-chip
European customers, with expected ARR of c.£2.0m
· Material revenue generation expected from FY27 with further expansion
opportunity as customers roll out additional capabilities
Ongoing transformation delivering to plan, increasing scalability and margin
improvement potential
· Adjusted EBITDA margin exceeded the Board's expectation, driven by the
increased recurring revenue, platform optimisation and cost efficiencies
· Improving revenue mix and quality, with recurring revenues now 85% of Group
revenues (H1 FY25: 80%)
· Period end ARR of £42.2m, up 29%, providing good visibility on future
revenues
· Strong cash generation ahead of plan, delivering net cash at period end of
£12.1m, supporting investment in sales and AI innovation
Confident in outlook and delivering continued momentum
· Progress made in H1 2026 across ARR growth, Win momentum, customer expansion,
margin recovery and OEM execution, gives the Board confidence in delivering
results for FY26 in line with recently increased 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 across the business will
support a return to double digit revenue and EBITDA growth in FY27
Tim Mason, Chief Executive of Eagle Eye, said:
"Eagle Eye has delivered a strong first half, achieving a financial
performance ahead of the Board's expectations together with considerable
progress against our strategic priorities. ARR is building strongly, including
growing traction in the US, and the first customers have been secured via the
transformational OEM agreement, providing a clear route for significant
expansion. We have strengthened the financial foundations of the business,
supporting margin recovery, an improving revenue mix and strong cash
generation, and providing us with confidence to invest in growth
opportunities.
"We continue to build upon our leadership in applied AI for retail. Our
EagleAI solutions saw strong growth in H1, and the integration of AIR and
EagleAI has further increased the attractiveness of our products, providing
retailers in our core verticals and others too with the means to embed AI
within their digital marketing activities at scale, and positioning us well to
capture the growing demand for AI-powered loyalty and personalisation,
globally.
"We are confident in building on our momentum in the second half and into
FY27, while maintaining a disciplined focus on margin progression and
long-term shareholder value creation."
(1) Excluding the revenues related to the Neptune Retail Solutions' ("NRS")
related contract lost in June 2025
(2)Annual recurring revenue ("ARR") is defined as period exit rate for
recurring subscription and transaction revenue (exc. SMS) plus any
professional services contracted for more than 12 months hence and secured new
wins, excluding any seasonal variations and lost contracts
(3) Net revenue retention ("NRR") rate is defined as the change in recurring
revenue excluding SMS and new wins in the last 12 months
(4) Direct profit is defined as profit after deducting from revenue costs
associated with the direct delivery of our services, including the cost of our
platforms and associated licences, third party transactional costs and staff
costs for employees dedicated to the successful implementation and ongoing
running of client services
(5) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, restructuring costs, interest and tax from the
measure of profit
(6) Net cash is cash and cash equivalents less borrowings
Enquiries:
Eagle Eye Solutions Group plc Tel: 0844 824 3686
Tim Mason, Chief Executive Officer
Lucy Sharman-Munday, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Joint Broker) Tel: +44 20 7523 8000
Simon Bridges, Harry Gooden, Andrew Potts, Elizabeth Halley-Stott
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 provider of applied AI for marketing, enabling
personalised, real-time engagement at scale for retail, travel and hospitality
brands globally. 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
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CEO statement
Overview
This was a period of strong execution and delivery on our strategic
objectives, resulting in a financial performance ahead of the Board's initial
expectations, as announced in January.
Following targeted investment into the Sales function, ARR is building
strongly, with ARR added in H1 2026 exceeding that achieved in the entirety of
the prior year. This included a particularly strong contribution from North
America, reflecting our increased focus on this region. Alongside this
progress, the first contracts via the transformational global OEM agreement
have been signed, in line with the Board's anticipated timing.
We have successfully reset the business and materially strengthened our
financial foundations following the previously announced loss of the NRS
contract last year. Ongoing increases in high quality recurring revenue and
cost optimisation delivered a margin performance ahead of the Board's
expectations, allowing our internal profit expectations for the year to be
increased in January, while continuing to selectively invest in growth
initiatives during Q3, including expanding our US sales team further on the
back of strong commercial momentum in the region.
AI represents a substantial opportunity for Eagle Eye. EagleAI revenues grew
by 23% in H1 2026 and we continue to innovate at pace and capitalise on the
advances in AI to strengthen our market opportunity. The technical integration
of AIR and EagleAI within our AI Personalised Promotions product has created a
highly powerful and differentiated offering. The product enables retailers to
embed AI within their digital marketing programmes at scale, unlocking the
power of their data and driving incremental sales through personalisation.
Meanwhile the utilisation of AI across our development team has delivered a
considerable acceleration in our development capabilities.
With our investment in sales capability and focus on operational efficiency
now bearing fruit, we are increasingly well positioned to capture the growing
global demand for AI-powered loyalty and personalisation, while maintaining a
disciplined focus on margin progression and long-term value creation.
Financial performance
The financial performance in H1 2026 was strong, exiting the Period with ARR
growth to £42.2m (30 June 2025: £34.0m). Group revenue, excluding the impact
of the NRS contract, grew by approximately 16%, to £22.4m, aided by SaaS and
transaction revenue growth of 24% to £19.1m (H1 FY25: £15.4m), offsetting
the impact of the NRS loss which saw headline Group revenue fall slightly to
£23.0m (H1 FY25: £24.2m).
Adjusted EBITDA of £4.3m represented an 18% margin, ahead of the Board's
expectations, driven by the Group's ongoing transformation, platform
optimisation, and further cost efficiencies. The Group was cash generative in
the Period and ended the Period with net cash of £12.1m (31 December 2024:
£11.7m), after having returned £0.6m in share buybacks. This cash position
and improving margins allow us to selectively invest in growth initiatives,
particularly in sales capability and AI development, while continuing to drive
margins forward.
We remain confident in our ability to balance investment with margin
progression and reiterate our guidance that we are targeting to exit FY26 with
an EBITDA margin run rate of 20%.
Winning and deepening customer relationships
The Group delivered a significant acceleration in Win momentum during H1 2026.
This reflects increased sales effectiveness following targeted investment,
improved product clarity, and growing demand for AI-driven loyalty and
personalisation solutions.
During the Period, the Group secured multi-year contracts for the AIR platform
and EagleAI solutions with eight major new customers across North America,
Europe and Asia, demonstrating strong traction across grocery, convenience and
retail. These were:
· A five-year contract with one of the largest independent food
retailers in North America
· A multi-year agreement with Wakefern, the largest retailer-owned
cooperative in the US, including our newest AI offering, AI Personalised
Promotions
· A three-year agreement with Kwik Trip, a leading US convenience
retailer
· A three-year contract with a large regional US grocery
supermarket
· 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 three-year agreement with FairPrice Co-Operative Ltd in
Singapore, a returning customer
Alongside new customer wins, the Group continued to deepen relationships with
existing customers, increasing ARR through higher volumes, expanded use cases
and adoption of additional platform capabilities. These include with
Morrisons, Asda, Carrefour, Giant Eagle and PepCo.
A key driver of this deepening of relationships has been customer adoption of
AI Personalised Promotions capability. At Morrisons, the programme has shown
strong engagement and retention. The retailer went live to one
million players after only 11 weeks of the initial trial, with a further
286,000 new players joining the programme since its full launch. As the
programme has expanded to a broader audience, repeat usage has improved
week-on-week demonstrating the stickiness of the experience. We are confident
that AI Personalised Promotions is a scalable driver of retailer value and, as
well as enhancing our win rate, will be attractive to our existing customer
base, supporting the Win and Deepen strategy and contributing to longer-term
revenue quality and visibility.
A significant customer renewed in the Period, for a further multi-year
engagement and as a result, less than 25% of ARR for the top 10 customers is
due for renewal prior to the start of FY28, providing a solid basis for
further expansion, and continued NRR growth towards our target of 120%.
With Net Revenue Retention of 108% (excluding NRS) and increasing adoption of
additional platform capabilities by our customers, we see significant further
expansion potential within our installed customer base, representing an
addressable expansion opportunity within existing customers alone of
approximately £40m of potential ARR, based on our internal analysis.
Growing market opportunity and AI leadership
Our mission is to be the global leader in AI-powered loyalty and personalised
marketing for retail. The rapid development of AI is expanding the opportunity
and desire to personalise marketing, providing a growing market for Eagle Eye.
Retailers are moving beyond traditional reward programmes towards targeted,
real-time engagement with individual customers. The combination of our
distribution scale, through AIR, which we believe to be the world's most
powerful transaction engine, with the quality of our built for retail AI
models, deep domain expertise and deep integration with our customers' point
of sale platforms, positions us well to capitalise on this growing
opportunity.
We already create and deliver an average of one billion AI generated
promotions per month, resulting in turnover of £3.6m during the Period and
demonstrable measurable value to our customers. In 2025 alone, our AI based
personalised offers generated an estimated £750m of incremental sales for our
retail clients in France and the UK.
Through processing and learning from 2.8 billion customer interactions per
minute, our AI models are getting more effective. The recent completion of the
integration of AIR and EagleAI within our AI Personalised Promotions product
is increasing our competitive positioning and delivering value to early
adopter customers, enabling retailers to deliver customised, individualised
offers at scale, with real-time execution out of the box, without the need for
additional data science capabilities. This differentiated capability is
increasingly decisive in competitive processes and was instrumental in the
recent multi-year win with Wakefern Food Corporation.
Other recent areas of AI innovation include Personalised Offer Ranking
(formerly Digital Flyers). The solution identifies which of a retailer's
existing mass promotions is most relevant to each individual customer to
enable more personalised marketing, delivering click through rates three times
higher than for standard, non-personalised flyers.
We are also using AI to accelerate our development capabilities. All our
engineers now use best-in-class AI coding tools to enhance productivity and
workflow efficiency, reducing engineering capacity as a bottleneck across
several components of our technical stack. Looking ahead, we plan to
incorporate Agentic AI within our platforms, to enhance the enterprise user
experience and increase their productivity.
We were delighted to win the Editor's Choice Award at the RTIH AI in Retail
Awards for innovation in retail AI, underlying our leadership in the sector.
The ability of our technology to support industry leading loyalty programmes
has also been recognised in the period, in the high level of customers
shortlisted for awards at the 2025 International Loyalty Awards
(https://internationalloyaltyawards.com/) , including Tesco, Woolworths Group
and Endeavour Group. As their technology partner, we are thrilled to see their
hard work and innovation recognised on a global stage.
A sizeable addressable opportunity, and expanded routes to market
The breadth of our offering, customer base, geographic reach and growing
partner network provide a considerable target market and ample opportunity
from which to deliver far beyond our medium-term ambitions of £100m revenue
and 30% EBITDA margin.
From our ARR of £42.2 million as at the end of December, we see a significant
opportunity for both ARR and NRR growth. Deepening and scaling transaction
volumes within our top 35 customers alone represents an additional ARR
opportunity of approximately £40 million, based on full take up of the core
Eagle Eye product offering. Beyond this, the opportunity expands materially,
to £1.9bn, driven by further uptake by businesses with our Ideal Customer
Profile (ICP) in our existing geographies, particularly North America, EMEA
and APAC. Meanwhile, the combined potential from partnerships and expansion
into new sectors and geographies, expands this opportunity even further to
approximately £3.3 billion, reflecting the increasing importance of loyalty
and personalisation to retailers globally.
We have three clear routes to exploit this opportunity: Direct sales led by
our US-based CRO; via the OEM agreement; and through Partnerships. Each of
these areas has made encouraging progress.
US market penetration
North America remains a key strategic focus for the Group due to its vast
potential customer base, including 230 businesses within our ICP.
The US contributed £2.5m in new ARR in H1 2026, thanks to four significant
wins. This highlights the effectiveness of our increased attention on the
region and the growing demand among large retailers for agile, AI-powered
loyalty and promotional solutions.
Our momentum in the US is fuelled by dedicating resources to better understand
our ICP and engaging more deeply with our industry contacts. The appointment
of Jeff Baskin as Chief Revenue Officer last year has been key to this,
enabling us to engage more closely with senior decision makers across the
industry. This approach is helping Eagle Eye raise its profile in North
America. Increasingly, we are chosen not just as a loyalty provider but also
as a growth partner, helping retailers achieve measurable improvements in
engagement, basket size, and campaign success.
By expanding our network and introducing a new blueprint for the Group's
revenue journey, we are achieving real commercial results and are
well-positioned for further growth in the region. We have a developing
pipeline across grocery, convenience, and specialist retail, and we see clear
opportunities to deepen relationships with our newest customers as they expand
their use of our platform.
Looking ahead, we will continue to invest in our sales and marketing efforts
in the US to strengthen our brand presence among major retailers and further
build our sales pipeline.
Delivering on the transformational OEM opportunity
The global OEM agreement represents a significant long-term growth opportunity
for Eagle Eye. During the period, the OEM's new cloud-hosted loyalty
management solution was released onto its price list, and the first customer
contracts were secured within weeks of launch.
These initial contracts include two blue-chip European retailers: one of the
largest furniture retailers globally, with over 500 stores, and a prominent
retail group in the DACH region operating more than 2,000 locations.
The OEM partner contract revenue model is transactional and therefore the ARR
is an estimate only. We currently expect the combined ARR of these new clients
to be c.£2.0m initially, derived from customer numbers and volumes based on
experience, and to be revenue-generating from FY27. This estimated amount is
included in our stated Period end Group ARR stated above.
Revenue from this channel is expected to be material from FY27 onwards, and
these initial strategic wins alone create a long runway for future expansion
as these customers roll out additional capabilities across their estates.
Scaling through partners and productisation
Alongside direct sales and the OEM route, we are increasingly leveraging
partnerships to accelerate reach and scalability, with partner referred
opportunities doubling versus H1 FY25. This is having a direct contribution to
ARR, with over 20% of global win ARR being referred or influenced by partners
in H1 2026. Notable partner-supported wins included a large retailer in APAC
referred by Google, a major APAC retailer influenced by Deloitte, and two EMEA
wins driven by other technology partners.
Ongoing productisation and platform optimisation initiatives are making Eagle
Eye's solutions easier to deploy, integrate and scale across both partner-led
and direct engagements. This is evidenced by the last seven deals requiring no
custom build, which underlines the increasing productisation of our platform
and our ability to deploy at pace and at scale and ultimately continue to
support an increased margin.
Cloud optimisation and replatforming initiatives have also driven a reduction
in cloud spend, targeting structural scalability and cost efficiency as
transaction volumes increase, and we continue to embed AI internally across
the organisation, to drive operational efficiency.
People and culture
Our people and culture continue to underpin the Group's performance. During
the Period, we strengthened our focus on impact, to ensure all team members
are focused on activities that directly influence our Objectives and Key
Results. The team has proven resilient during a period of substantial change,
with departures from the business following a senior leadership restructuring
and cost reduction programme across both Eagle Eye and Promotional Payments
Solutions (PPS). We thank everyone, past and present, for their commitment and
contributions to the success of Eagle Eye and our customers.
Confident outlook
Eagle Eye is firmly positioned as a market-leading technology business
operating in a significant, global market. The substantial progress made in
the first half of FY26, including ARR growth, win momentum, margin recovery
and OEM execution, underpins the Board's confidence in exiting FY26 with a 20%
EBITDA margin run rate and delivering full year results in line with recently
increased market expectations.
Early success with the transformational OEM agreement and growing traction in
the US provide a clear runway for expansion, supporting the expectation of a
return to double-digit revenue and EBITDA growth in FY27. This momentum,
combined with the enhanced capabilities of AIR and EagleAI, positions Eagle
Eye to capture the growing global demand for AI-powered personalisation, while
maintaining a focus on long-term value creation.
Tim Mason, CEO
16 March 2026
Financial Highlights
H1 2026 H1 2025 Change
KPIs excluding NRS
Period end Annual Recurring Revenue(1) £42.2m £32.8m +29%
Net Revenue Retention(2) 108% 104% +4ppts
Group Revenue £22.4m £19.3m +16%
Recurring Revenue £19.1m £15.4m +24%
KPIs including NRS
Group revenue £23.0m £24.2m -5%
Recurring Revenue £19.6m £19.5m +1%
Professional Services Revenue £3.0m £4.4m -32%
SMS Revenue £0.4m £0.3m +55%
Recurring revenue % of Group revenue 85% 81% +5ppts
Period end Annual Recurring Revenue(1) £42.2m £41.0m +3%
Net Revenue Retention(2) 99% 104% -5ppts
Direct profit(3) £16.2m £16.9m -4%
Direct profit margin 70% 70% -
Adjusted EBITDA(4) £4.3m £5.9m -28%
Adjusted EBITDA margin 18% 24% -6ppts
Adjusted EBITA(5) £1.2m £3.0m -59%
Adjusted EBITA margin 5% 12% -7ppts
(Loss)/profit before tax £(1.2)m £1.6m n/a
Net cash(6) at 31 December £12.1m £11.7m +3%
Long term contract customer churn by value 0.4% 0.1% +3ppts
(1) Annual recurring revenue ("ARR") is defined as period exit rate for
recurring subscription and transaction revenue (exc. SMS) plus any
professional services contracted for more than 12 months hence and secured new
wins, excluding any seasonal variations and lost contracts
(2) Net revenue retention ("NRR") rate is defined as the change in recurring
revenue excluding SMS and new wins in the last 12 months
(3) Direct profit is defined as profit after deducting from revenue costs
associated with the direct delivery of our services, including the cost of our
platforms and associated licences, third party transactional costs and staff
costs for employees dedicated to the successful implementation and ongoing
running of client services
(4) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, restructuring costs, interest and tax from the
measure of profit
(5) Adjusted EBITA excludes share-based payment charges along with
amortisation on intangible assets recognised under IFRS 3 on the acquisitions
of EagleAI and Promotional Payments Solutions, restructuring costs, interest
and tax from the measure of profit
(6) Net cash is cash and cash equivalents less borrowings
Financial Review
Revenue and Direct Profit
During the period, Group revenue was £23.0m (H1 2025: £24.2m). While this
represents a headline decrease of 5% (£1.1m) compared to the prior year,
excluding the impact of the isolated NRS customer loss, Group revenue grew by
16% to £22.4m. This growth was driven by a 24% increase in recurring revenue
to £19.1m (H1 2025: £15.4m), reflecting the Group's continued evolution into
a fully scalable recurring revenue business.
Recurring revenue now represents 85% of total Group revenue, up from 81% in
the prior period. The growth in recurring revenue was principally supported by
the primarily SaaS-based revenue of EagleAI, which grew by 23%, contributing
£3.6m to the total, being 15% (H1 2025: £2.9m, 12%) and pleasingly,
Promotional Payments Solutions, which was acquired at the end of June 2025,
contributed £1.7m in revenue during the Period. Recurring revenue was further
bolstered by increased transaction volumes from Morrisons, Asda and Carrefour.
The Group's Annual Recurring Revenue (ARR) increased to £42.2m (H1 2025:
£41.0m). Excluding the NRS contract loss, underlying ARR grew by 29% from
£32.8m in H1 2025. This growth was driven by securing eight major multi-year
contracts and deepening existing customer engagements; new ARR in H1 2026 has
exceeded that from the entirety of FY 2025.
Period end Group ARR includes an estimated amount in relation to the customers
secured via the OEM partner contract, which is transactional. The Group
estimates the ARR of these new clients to be c.£2.0m initially, derived from
customer numbers and volumes based on experience, and for the clients to be
revenue-generating from FY27.
Excluding the effect of the NRS exit, Net Revenue Retention (NRR) grew to 108%
(H1 2025: 104%), and was 115% for the top 10 customers. Including the NRS
impact, NRR was 99%. This performance is further supported by low long-term
contract customer churn which returned to previous levels at 0.4%.
Direct profit margin remained stable at 70%, with the lower revenue resulting
in direct profit of £16.2m (H1 2025: £16.9m). This stability in margin,
despite the loss of a high-margin contract, highlights the success of the
Group's ongoing cost optimisation and its shift toward higher-value recurring
revenue which has seen recurring revenue increase as a proportion of revenue,
and the Direct margin for SaaS services increase to 74% (H1 2025: 73%).
Adjusted Operating Expenses and EBITDA
Adjusted operating expenses were managed effectively as the Group sought
efficiencies to mitigate the NRS loss. This is being achieved through the
following initiatives:
· The ongoing transformation and execution of platform
efficiencies, which will continue into H2 2026;
· The restructuring of the senior team; and
· Synergies realised following the acquisition of PPS, reducing
office costs and eliminating overlapping roles.
Adjusted EBITDA was £4.3m (H1 2025: £5.9m), resulting in an adjusted EBITDA
margin of 18%, a performance which exceeded the Board's expectations. In H2
2026, we will continue to optimise the cost base of the business, whilst
allowing investment in sales and EagleAI, targeting an FY26 exit EBITDA run
rate margin of 20%.
Net staff costs and IT infrastructure remain the primary components of our
cost base. Net staff costs, which represent 54% of adjusted operating costs
(H1 2025: 57%) remained at £10.2m (H1 2025: £10.2m), with an average
headcount of 257 (H1 2025: 254). We continue to invest in our product set,
with total product development costs of £4.2m (H1 2025: £4.4m), of which
£2.7m (64%) was capitalised during the period (H1 2025: £1.5m (34%)). The
increase in capitalisation reflected the focus on changes to the platform
required to support the OEM contract and is expected to reduce in H2 2026.
IT infrastructure costs remained flat at £5.2m (H1 2025: £5.1m).
Other operating costs, which are either discretionary or are not correlated to
changes in revenue, increased to £2.9m (H1 2025: £2.7m), primarily
reflecting increased investment in marketing and our sales effort.
Tax and Earnings per Share
The tax credit of £1.4m (H1 2025: £0.3m) arose primarily as a result of
higher R&D credits than expected following finalisation of returns and the
favourable impact on the share based payment related deferred tax asset as a
result of the increase in share price in the period.
Primarily reflecting the impact of one-off restructuring costs and the NRS
exit, offset by the tax credit, the Group reported a reduced profit after
taxation of £0.1m (H1 2025: £1.9m). This resulted in basic earnings per
share of 0.46p (H1 2025: 6.29p).
Cashflow, net cash and balance sheet
The Group remains cash generative, ending the period with net cash of £12.1m
(H1 2025: £11.7m). This was achieved after returning £0.6m to shareholders
via the share buyback programme. Net cash flows from operating activities were
£4.1m (H1 2025: £4.8m), supported by strong cash collection of customer
receipts at the period end.
Net assets were £33.4m at 31 December 2025 (30 June 2025: £32.7m). The
balance sheet remains robust, supported by the strong cash position and
unutilised £10m revolving credit facility.
Consolidated unaudited interim statement of total comprehensive income for the
six months ended 31 December 2025
Unaudited Restated Audited
Unaudited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Note £000 £000 £000
Continuing operations
Revenue 3 23,035 24,156 48,196
Direct costs (6,816) (7,298) (13,695)
Direct profit 16,219 16,858 34,501
Indirect operating expenses (11,962) (11,041) (31,690)
Other income 36 69 162
5 4,257 5,886 12,193
Adjusted EBITDA ((1) )
Acquisition costs - - (423)
Restructuring costs (468) - (418)
Share-based payment charge (766) (268) (539)
Depreciation and amortisation (4,268) (4,036) (7,840)
Operating (loss)/profit (1,245) 1,582 2,973
Finance income 63 26 98
Finance expense (31) (43) (84)
(Loss)/profit before taxation (1,213) 1,565 2,987
Taxation 1,351 299 (1,358)
Profit after taxation for the financial period 138 1,864 1,629
Foreign exchange adjustments 384 (97) (779)
522 1,767 850
Total comprehensive profit attributable to the owners of the parent for the
financial period
Earnings per share
From continuing operations
Basic 4 0.46p 6.29p 5.49p
Diluted 4 0.41p 5.64p 4.89p
((1)) Adjusted EBITDA excludes share-based payment charge, depreciation,
amortisation, restructuring and acquisition costs, interest and tax from the
measure of profit
Consolidated unaudited interim statement of financial position as at 31
December 2025
Unaudited Restated Audited
Unaudited
31 December 31 December 30 June
2025 2024 2025
£000 £000 £000
Non-current assets
Intangible assets 20,706 16,818 20,748
Contract fulfilment costs 2,866 2,640 2,884
Property, plant and equipment 645 1,127 793
Non-current tax receivable 439 - 306
Deferred taxation 5,125 8,455 4,821
29,781 29,040 29,552
Current assets
Trade and other receivables 9,568 11,369 9,673
Current tax receivable 75 224 467
Cash and cash equivalents 12,089 11,855 12,327
21,732 23,448 22,467
Total assets 51,513 52,488 52,019
Current liabilities
Trade and other payables (11,428) (10,537) (12,375)
IFRS 15 deferred income (2,263) (2,157) (2,358)
Current tax payable (89) (243) (176)
Financial liabilities (23) (87) (51)
(13,803) (13,024) (14,960)
Non-current liabilities
IFRS 15 deferred income (3,328) (3,235) (3,299)
Other payables (199) (316) (303)
Financial liabilities - (22) -
Deferred taxation (739) (984) (789)
(4,266) (4,557) (4,391)
Total liabilities (18,069) (17,581) (19,351)
Net assets 33,444 34,907 32,668
Equity attributable to owners of the parent
Share capital 302 296 297
Share premium 30,165 30,089 30,135
Merger reserve 3,278 3,278 3,278
Share option reserve 8,172 9,352 9,189
Treasury share reserve (548) - -
Retained losses (7,925) (8,108) (10,231)
Total equity 33,444 34,907 32,668
Consolidated unaudited interim statement of changes in equity for the six
months ended 31 December 2025
Share capital Share premium Merger reserve Share option reserve Treasury share reserve Retained Total
losses
£000 £000 £000 £000 £000 £000 £000
296 30,089 3,278 9,084 - (9,875) 32,872
Balance at 1 July 2024- restated
Profit for the period - - - - - 1,864 1,864
- - - - - (97) (97)
Other comprehensive income
Foreign exchange adjustments
- - - - - 1,767 1,767
Transactions with owners
Share-based payment charge - - - 268 - - 268
- - - 268 - - 268
Balance at 31 December 2024- restated 296 30,089 3,278 9,352 - (8,108) 34,907
- - - - - (235) (235)
Loss for the period
Other comprehensive income - - - - - (682) (682)
Foreign exchange adjustments
- - - - - (917) (917)
Transactions with owners
Exercise of share options 1 46 - - - - 47
Fair value of share options exercised - - - (430) - 430 -
Fair value of share options lapsed - - - (4) - 4 -
Share-based payment charge - - - 271 - - 271
Deferred tax on share-based payments - - - - - (1,640) (1,640)
1 46 - (163) - (1,206) (1,322)
Balance at 30 June 2025 297 30,135 3,278 9,189 - (10,231) 32,668
Profit for the period - - - - - 138 138
- - - - - 384 384
Other comprehensive income
Foreign exchange adjustments
- - - - - 522 522
Transactions with owners
Exercise of share options 5 30 - - - - 35
Share-based payment charge - - - 767 - - 767
Fair value of share options exercised - - - (1,759) - 1,759 -
Fair value of share options lapsed - - - (25) - 25 -
Purchase of treasury shares - - - - (548) - (548)
5 30 - (1,017) (548) 1,784 254
Balance at 31 December 2025 302 30,165 3,278 8,172 (548) (7,925) 33,444
Included in "retained losses" is a cumulative foreign exchange loss of
£1,106,000 (June 2025: loss of £1,009,000).
Consolidated unaudited interim statement of cash flow for the six months ended
31 December 2025
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£000 £000 £000
Cash flows from operating activities
(Loss)/profit before taxation (1,214) 1,565 2,987
Adjustments for:
Depreciation 308 348 702
Amortisation 3,959 3,688 7,137
Share-based payment charge 767 268 539
Finance income (63) (26) (98)
Finance expense 31 43 84
Decrease/(increase) in trade and other receivables 843 (1,061) 798
(Decrease)/increase in trade and other payables (916) (377) 966
Income tax paid (254) (153) (509)
Income tax received 686 455 896
Net cash flows from operating activities 4,147 4,750 13,502
Cash flows from investing activities
Payments to acquire property, plant and equipment (161) (65) (155)
Payments to acquire intangible assets (3,843) (3,049) (6,024)
Interest received 63 26 53
Acquisitions, net of cash and cash equivalents acquired - - (4,184)
(3,941) (3,088) (10,310)
Net cash flows used in investing activities
Cash flows from financing activities
Net proceeds from issue of equity 35 - 46
Payments for purchase of shares into treasury (548) - -
Repayment of borrowings (28) (60) (121)
Capital payments in respect of leases (199) (261) (526)
Interest paid in respect of leases (17) (28) (52)
Interest paid (14) (15) (32)
(771) (364) (685)
Net cash flows used in financing activities
(565) 1,298 2,507
Net (decrease)/increase in cash and cash equivalents in the period
Foreign exchange adjustments 327 (19) (756)
Cash and cash equivalents at beginning of period 12,327 10,576 10,576
12,089 11,855 12,327
Cash and cash equivalents at end of period
Notes to the consolidated unaudited interim financial statements
1. Basis of preparation
The Group's half-yearly financial information, which is unaudited,
consolidates the results of Eagle Eye Solutions Group plc and its subsidiary
undertakings up to 31 December 2025. The Group's accounting reference date is
30 June. Eagle Eye Solutions Group plc's shares are listed on AIM, the market
of that name operated by the London Stock Exchange.
The Company is a public limited liability company incorporated and domiciled
in England & Wales. The presentational and functional currency of the
Group is Sterling. Results in this consolidated financial information have
been prepared to the nearest £1,000.
Eagle Eye Solutions Group plc and its subsidiary undertakings have not applied
IAS 34, Interim Financial Reporting, which is not mandatory for UK AIM listed
groups, in the preparation of this half-yearly financial report.
The accounting policies used in the preparation of the financial information
for the six months ended 31 December 2025 are in accordance with the
recognition and measurement criteria of UK-adopted International Accounting
Standards ('IFRS') and are consistent with those which will be adopted in the
annual financial statements for the year ending 30 June 2026.
Adjusted EBITDA and other adjusted performance measures are presented in the
statement of total comprehensive income as the Directors consider these
performance measures provide a more accurate indication of the underlying
performance of the Group and are commonly used by City analysts and investors.
While the financial information included has been prepared in accordance with
the recognition and measurement criteria of IFRS these interim financial
statements do not contain sufficient information to comply with IFRS.
The comparative financial information for the year ended 30 June 2025 has been
extracted from the annual financial statements of Eagle Eye Solutions Group
plc. These interim results for the period ended 31 December 2025, which are
not audited, do not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. The financial information does not therefore
include all of the information and disclosures required in the annual
financial statements.
Full audited accounts of the Group in respect of the year ended 30 June 2025,
which received an unqualified audit opinion and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006, have been delivered to
the Registrar of Companies.
2. Going concern basis
As part of their going concern review the Directors have followed the
guidelines published by the Financial Reporting Council entitled "Guidance on
Risk Management and Internal Control and Related Financial and Business
Reporting''. The Directors have prepared detailed financial forecasts and cash
flows looking beyond 12 months from the date of this half-yearly financial
information. In developing these forecasts, the Directors have made
assumptions based upon their view of the current and future economic
conditions that will prevail over the forecast period.
On the basis of the above projections, the Directors are confident that the
Group has sufficient working capital to honour all of its obligations to
creditors as and when they fall due. In reaching this conclusion, the
Directors have considered the forecast cash headroom, the resources available
to the Group and the potential impact of changes in forecast growth and other
assumptions, including the potential to avoid or defer certain costs and to
reduce discretionary spend as mitigating actions in the event of such changes.
Accordingly, the Directors continue to adopt the going concern basis in
preparing this half-yearly financial information.
3. Segmental analysis
The Group is organised into two principal operating divisions for management
purposes. Revenue is analysed as follows:
Unaudited Unaudited Unaudited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£000 £000 £000
Development and set up fees 2,978 4,379 7,501
Subscription and transaction fees 20,057 19,777 40,695
23,035 24,156 48,196
Unaudited Unaudited Unaudited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£000 £000 £000
AIR revenue 17,397 21,018 41,948
EagleAI revenue 3,553 2,878 5,744
Promotional Payments Solutions revenue 1,681 - -
Messaging revenue 404 260 504
23,035 24,156 47,733
The majority of the Group's revenue comes from services which are transferred
over time.
4. Earnings per share
The calculation of basic earnings per share is based on the result
attributable to ordinary shareholders divided by the weighted average number
of ordinary shares in issue during the period. The calculation of diluted
earnings per share is based on the result attributable to ordinary
shareholders divided by the weighted average number of ordinary shares in
issue during the period, diluted for the effect of options being converted to
ordinary shares. Basic and diluted earnings per share from continuing
operations are calculated as follows:
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
H1 2026 H1 2026 H1 2026 H1 2025 H1 2025 H1 2025
Earnings Profit Weighted average number of ordinary shares Earnings Profit Weighted average number of ordinary shares
per share £000 per share £000
pence pence
Basic earnings/(loss) per share 0.46 138 29,892,067 6.29 1,864 29,613,336
Diluted earnings/(loss) per share 0.41 138 34,077,075 5.64 1,864 33,003,765
5. Alternative performance
measures
Adjusted EBITDA and adjusted EBITA are key performance measures for the Group
and are derived as follows:
Unaudited Unaudited Unaudited Year to
6 months to 6 months to 31 December 30 June
31 December 2024 2025
2025
£000 £000 £000
(Loss)/profit before taxation (1,213) 1,565 2,987
Add back:
Net finance income and expense (credit)/charge (32) 17 (14)
Share-based payments 767 268 539
Restructuring costs 467 - 418
Acquisition costs - - 423
IFRS 3 amortisation 1,215 1,106 2,212
Adjusted EBITA
1,204 2,956 6,565
3,053 2,930 5,628
Depreciation and IAS 38/IFRS 15 amortisation
4,257 12,193
Adjusted EBITDA 5,886
Direct profit is a key performance measure which is more comparable to the
gross profit measure of other SaaS companies and is derived as follows:
Unaudited Unaudited Unaudited Year to
6 months to 6 months to 31 December 30 June
31 December 2024 2025
2025
£000 £000 £000
(Loss)/profit before taxation (1,213) 1,565 2,987
Add back:
Net finance income and expense (credit)/charge (32) 17 (14)
Share-based payments 767 268 539
Depreciation and amortisation 4,268 4,036 7,840
Restructuring costs 467 - 418
Acquisition costs - - 423
Other income (36) (69) (162)
Indirect operating expenses 11,998 11,041 22,470
16,219 34,501
Direct profit 16,858
6. Net cash
30 June 2025 Cash flow Foreign exchange adjustments 31 December 2025
£000 £000 £000 £000
Cash and cash equivalents 12,327 (565) 327 12,089
Financial liabilities (51) 28 - (23)
(537) 327
Net cash 12,276 12,066
7. H1 2025 Restatement
As reported within the Groups' FY25 Results, during H2 2025 the Directors
finalised the FY24 tax computations and the losses available for deduction
against future taxable profits in the UK and France. Since the consolidated
financial statements for FY24 were finalised, there had been revisions to the
classification of deferred tax balances by category and the total amount of
losses available for utilisation in the future has been updated. These changes
resulted in a reduction of the deferred tax asset relating to trading losses
of £1.2 million compared with the amounts previously reported.
In addition to this reduction, a change has been made to present deferred tax
liabilities arising on acquired intangibles separately from deferred tax
assets related to trading losses of acquired entities. In the prior year, such
deferred tax balances were presented on a net basis within non-current assets.
These changes also impacted the consolidated statement of profit or loss and
total comprehensive income, the consolidated statement of financial position
and earnings per share for H1 2025. There was no impact to the cash flows of
the group.
8. Availability of this Interim Announcement
Copies of this announcement are available on the Company's website,
www.eagleeye.com (http://www.eagleeye.com) .
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