UK's Skillcast H1 revenue rises 10% on subscription growth, but AAR growth slows

Skillcast

30/09/2026 07:15

Overview
UK GRC software provider's H1 revenue rose 10% yr/yr, driven by subscription growth
EBITDA for H1 climbed 48% yr/yr as operational gearing improved
Company says slower ARR growth reflects delayed client decisions amid economic uncertainty

Outlook
Skillcast expects full-year revenue and profit to be in line with market expectations
Company sees ARR growth in H2 at a similar level to H1, with full-year YoY growth slightly down
Skillcast says sales pipeline is in line with the same period in 2025, but decision-making remains slow

Result Drivers
SUBSCRIPTION REVENUE GROWTH - Co said 15% yr/yr increase in subscription revenues drove overall revenue growth and improved recurring revenue mix
CLIENT DECISION DELAYS - Co attributed slower ARR growth to delayed decision-making among clients facing economic uncertainty and evaluating AI adoption
OPERATIONAL EFFICIENCY - Co said improved gross margin and EBITDA were driven by operational gearing and higher SaaS revenue mix

Company press release: ID:nRSd8425Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Gross Margin
 
77.10%
 
H1 ARR
 
GBP 14.50 mln
 
H1 EBITDA
 
GBP 1 mln
 
H1 Free Cash Flow
 
GBP 0.7 mln 
 

Analyst Coverage
Wall Street's median 12-month price target for Skillcast Group PLC is GBp90.00, about 109.3% above its September 29 closing price of GBp43.00
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)