Black Pearl Group (BPG) H2 2026 earnings summary

Executive summary

• Achieved record annual recurring revenue (ARR) of $26.8 million for FY26, up 114% year-over-year, driven by strategic execution, acquisitions, and capital raises.

• Pearl Engine technology demonstrated 25x efficiency over leading AI models in high-quality lead identification, with 87.3% output quality and 5x lower cost per quality record.

• Data-as-a-Service (DaaS) now accounts for nearly 40% of group revenue, up from 0% the previous year, with 0% churn and high retention.

• B2B Rocket acquisition and integration increased average revenue per customer by 155%, delivered $1.8 million in annualized cost synergies, and improved lead quality.

• Focus shifting from rapid growth to optimization, emphasizing cash generation, operational leverage, and balancing ARR growth with cash conversion.

Financial highlights

• Subscription revenue grew 77% year-over-year to $13.7 million.

• Gross profit margin improved to 69% in FY26, up from 67.8% in FY25, due to fixed-cost data supply agreements.

• ARR per employee increased 41% year-over-year, reaching $346,000 at Q4 FY26.

• Ended FY26 with $9.6 million in cash and raised $26.9 million across two capital raises; BNZ $5 million facility refinanced to March 2028.

• EBITDAF loss of $15.7 million, including $10.2 million in one-off non-recurring costs related to acquisition, ASX listing, and offer costs.

Outlook and guidance

• FY27 priorities include compressing contract ramp cycles, optimizing customer profiles, and leveraging fixed cost infrastructure for margin expansion.

• Near-term focus on converting contracted ARR into recognized revenue, deepening unit economics, and accelerating ARR and cash generation.

• $30 million ARR milestone expected soon, with a medium-term target of $50 million.

• No plans to significantly increase headcount; emphasis on efficiency and automation.

• DaaS expected to remain a core, zero-churn revenue driver, with further product releases and strategic acquisitions planned.