dotdigital Group (DOTD) H2 2026 earnings summary

Executive summary

• FY26 ARR reached £85.4m, up 18% reported and 17% at constant currency; organic constant-currency ARR growth accelerated to 8% from 6% at H1.

• Recurring and repeating revenue represented 96% of total revenue, while adjusted EBITDA margin remained 32%.

• A five-product suite now spans audience acquisition, cross-channel marketing, personalization, loyalty and advocacy, with growth plans centered on international expansion, partner channels and AI adoption.

Financial highlights

• Revenue was £90.9m, up 8% YoY or 9% at constant currency; gross profit was £72.4m, up 9%, and gross margin improved to 80% from 79%.

• Core marketing recurring revenue grew 14% to £76.8m; transactional CPaaS repeating revenue declined to £10.3m from £12.0m.

• Operating profit was £16.0m, up 18%; adjusted operating profit was £18.9m, up 8%, and adjusted PBT was £19.4m, up 2%.

• Adjusted EBITDA was £29.4m, up 10%, with a 32% margin; adjusted diluted EPS was 4.94p versus 4.80p.

Outlook and guidance

• The Board remains confident in FY27 market consensus: revenue £104.8m, adjusted EBITDA £32.8m at a 31% margin, and adjusted PBT £22.3m at a 21% margin.

• Priorities include growing Alia and Social Snowball, strengthening marketing-platform retention and new-logo performance, monetizing AI, and expanding Loyalty beyond Shopify.

• FY27 Alia cross-sell into the wider customer base began in September 2026; the broader partner program is planned for January 2027.