Big Technologies (BIG) H1 2025 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) grew 12% year-over-year to £48.9m, driven by APAC expansion and new contracts in the Americas.

• Total revenue for H1 2025 was £24.8m, down from £26.5m in H1 2024, but underlying constant currency revenue grew 9% excluding the Colombia contract loss.

• Adjusted EBITDA was £12.5m (H1 2024: £14.3m), with a margin of 50.4%, impacted by a £4.0m exceptional FX loss.

• Statutory operating loss of £27.1m (H1 2024: profit of £2.4m) due to significant litigation provisions and FX losses.

• Strong net cash position of £94.9m and no debt as of 30 June 2025.

Financial highlights

• Gross margin declined to 67.5% (H1 2024: 70.0%) due to FX headwinds.

• Adjusted basic EPS fell to 3.2p (H1 2024: 4.1p); statutory EPS was a loss of 10.0p per share.

• Net cash from operations was £5.4m (H1 2024: £9.5m), despite ongoing litigation costs.

• Provisions for litigation increased to £42.7m, significantly impacting net assets, which fell to £84.9m (30 June 2024: £133.5m).

Outlook and guidance

• Further ARR growth expected in H2 2025 as new contracts in Northern Ireland and APAC commence.

• Foreign exchange headwinds anticipated to negatively impact revenue and EBITDA by c.5% and c.10%, respectively.

• Focus on accelerating topline growth and expanding the customer base, with competitive pricing expected to slightly reduce gross margins.

• A hedging programme will be initiated to mitigate FX risks.