essensys (ESYS) H2 2025 earnings summary

Executive summary

• Achieved a return to positive Adjusted EBITDA of £1.3m (FY24: £0.9m loss), reflecting cost discipline and a focus on high-quality recurring revenues.

• Revenue declined 21% to £19.2m (FY24: £24.1m), mainly due to the anticipated downsizing of a single large strategic customer.

• Gross margin improved to 59% (FY24: 57%) due to a higher proportion of recurring revenue and a more focused operating model.

• Launched new product, elumo, and completed a data centre decommissioning project, realising £1.5m in annualised cost savings.

• Board changes included a new CEO and CFO, and a strengthened governance structure.

Financial highlights

• Revenue: £19.2m, down 21% year-over-year.

• Recurring revenue: £16.9m, down 17% year-over-year.

• Run Rate Annual Recurring Revenue (ARR): £15.0m, down 26% year-over-year.

• Adjusted EBITDA: £1.3m (FY24: £0.9m loss).

• Statutory loss before tax: £5.7m (FY24: £5.5m loss).

• Loss per share: (8.6)p (FY24: (5.1)p).

• Net cash: £1.8m (FY24: £3.1m).

Outlook and guidance

• Q1 FY26 revenue in line with management expectations.

• FY26 performance anticipated to be materially below expectations due to volatile macroeconomic conditions and slower adoption of elumo.

• Management remains focused on customer engagement, operational resilience, and targeted go-to-market strategies.