Aptitude Software Group (APTD) H1 2026 earnings summary

Executive summary

• Achieved 12% year-over-year ARR growth in AI Autonomous Finance to £20.1m, driven by 85% growth in Fynapse ARR to £4.9m, reflecting strong momentum for the Finance ERP strategy.

• Secured the largest new logo win to date for Fynapse, including a £4.2m contract with a major North American financial services provider, marking a record deal.

• Partner-influenced pipeline increased to 92%, up from 70% a year earlier, with Fynapse now representing 93% of total pipeline value.

• Total ARR declined 2% year-over-year to £49.9m, mainly due to planned reduction in legacy and services-related revenues as the business pivots to a software-led model.

• Strategic review ongoing, with advanced discussions for a potential sale of the company.

Financial highlights

• Maintained a strong financial position with £21.1m in cash and £15.7m in net cash at period end.

• Total revenue for H1 2026 was £28.8m, down 12% year-over-year, with recurring revenue proportion rising to 88.1% from 81.5%.

• Adjusted operating profit increased to £5.1m (H1 2025: £4.9m), with operating margin improving to 17.8% from 14.9%.

• Adjusted EPS was 6.5p (H1 2025: 6.6p); basic EPS dropped to 1.1p (H1 2025: 2.5p).

• Dividend of 1.8p per share paid in June and £2.6m returned via share buybacks in H1 2026.

Outlook and guidance

• Focus remains on capturing the Finance ERP market with Fynapse, accelerating investment in product, go-to-market, and partner capacity.

• Extended sales cycles due to macroeconomic and geopolitical factors, but medium- to long-term market opportunity for Finance ERP remains strong.

• Continued execution of transformation plan and strategic review, with further announcements expected.