Energy One (EOL) H1 2026 earnings summary

Executive summary

• Revenue grew 21% year-over-year to $34.8M, with recurring revenue at a record 91% of total revenue and strong organic growth in both Europe and Australia.

• Net Profit After Tax rose 56% to $4.5M, and EBITDA increased 63% to $7.3M, both adjusted for one-off costs.

• Achieved ISO/IEC 27000 (ISO 27001) certification, enhancing credibility and competitive differentiation.

• Smooth CEO transition, maintaining strategic continuity and focus on disciplined M&A.

• AI adoption drove productivity gains of over 50%, with 1.6 million lines of code generated and new product launches accelerating growth.

Financial highlights

• Annual Recurring Revenue (ARR) reached $64.0M, up 20% year-over-year (FX adjusted 17.4%), in line with guidance.

• Gross margin improved to 66%, supported by upselling, bundling, and margin expansion strategies.

• Cash EBITDA margin reached 21%, up from 15% in H1 FY25, with cash EBITDA at $7.3M.

• Free cash flow momentum enabled a $2.4M fully franked dividend, representing 40% of NPAT.

• Net debt reduced to $5.8M, with leverage down to 0.4x EBITDA.

Outlook and guidance

• ARR pipeline up 24% year-over-year, with recurring revenue growth target of 15–20% and margin expansion prioritized.

• Cash EBITDA margin targeted to reach ~30% by late 2027; net cash position anticipated around Q1 2027.

• Attrition expected to trend down to 2.5–4.0% for FY26; gross margin guidance 64–66%.

• Continued investment in AI, automation, and new product development to support growth.

• Expansion into new geographies in Southern and Eastern Europe and potential APAC markets.