Fadel Partners (FADL) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was $4.7M, down 11% year-over-year, with License/Subscription and Support revenue up 4% and Services revenue down 35%.

• Gross profit margin declined to 49% from 53% in H1 2024, reflecting a shift toward higher-margin recurring revenue and lower services utilization.

• Adjusted EBITDA loss improved to -$2.4M from -$3.6M, driven by a 22% reduction in operating expenses.

• No customer churn in core IPM Suite or Brand Vision platforms; customer base expanded in both segments.

• Board reconfirmed FY 2025 guidance: revenue $12.0M–$12.9M, adjusted EBITDA loss $1.0M–$0.8M, year-end cash $0.5M–$0.9M.

Financial highlights

• Group revenue for H1 2025 was $4.7M (H1 2024: $5.3M), with License/Subscription and Support at $3.5M and Services at $1.2M.

• Gross profit was $2.3M (H1 2024: $2.8M), with a margin of 49%.

• Operating expenses fell to $4.8M from $6.2M, reflecting cost discipline and restructuring.

• Adjusted EBITDA loss improved by 33% year-over-year.

• Net loss after taxes for H1 2025 was $2.87M, compared to $4.11M in H1 2024.

• Cash and cash equivalents at June 30, 2025, were $1.6M, with access to a $1.0M undrawn credit facility.

Outlook and guidance

• FY 2025 revenue expected between $12.0M and $12.9M; adjusted EBITDA loss target of $1.0M–$0.8M.

• Year-end cash forecasted at $0.5M–$0.9M; credit facility renewed through May 2026.

• Pipeline conversion expected to improve in H2 2025 as market uncertainty eases.