Craneware (CRW) H2 2026 earnings summary

Executive summary

• Fiscal 2026 results were below expectations due to 340B market headwinds and a cybersecurity incident, but recurring revenue remained resilient at $185m ARR with 100% NRR and customer retention above 90%.

• Revenue expectations have been reset to align with recurring revenue, providing greater certainty for stakeholders amid ongoing market and operational uncertainties.

• Comprehensive cost base review underway to align expenses with revised revenue expectations and support future growth, with a commitment to 30%+ EBITDA margins.

• The Microsoft partnership is expected to accelerate AI and sales initiatives.

Financial highlights

• Revenue for fiscal 2026 was $206 million, flat year-over-year (FY25: $205.7m).

• Adjusted EBITDA reached $67.1 million, up 3%, with a 33% margin.

• Adjusted basic EPS was 1.168 (116.8 cents); operating cash conversion was 98%.

• Year-end cash stood at $54.8 million, with $56 million undrawn RCF and $100 million accordion facility available.

• Bank debt increased to $43.5 million, partly to fund a $25 million share buyback.

Outlook and guidance

• Fiscal 2027 revenue guidance reset to $185 million, matching current ARR, with expectations of flat NRR at 100%.

• Margin guidance for fiscal 2027 is mid to high-20%, with a target to return to 30%+ margins by fiscal 2028.

• Growth expected to resume in fiscal 2028 as market uncertainties resolve and product investments yield results.

• Ongoing investment in innovation and product launches to drive future cross-sell and upsell opportunities.