Fadel Partners (FADL) Q4 2025 TU earnings summary

Executive summary

• Achieved 13% year-over-year growth in license and support ARR to $8.9M for FY25, driven by new contract wins and upselling to existing customers.

• Revenue declined 4% year-over-year to $12.6M, mainly due to a reduction in lower-margin services revenue.

• Adjusted LBITDA improved to approximately $0.8M from $3.9M in FY24, reflecting significant cost reductions.

• Ended FY25 with $1.9M in cash, exceeding market expectations and supported by improved cash collections and contract management.

Financial highlights

• License and support revenue grew 3% year-over-year to $8.2M, while services revenue fell 12% to $4.4M.

• Operating expenses decreased 31% year-over-year to $9.0M.

• Cash and cash equivalents at year-end were $1.9M, down from $2.6M in FY24.

Outlook and guidance

• Expects continued ARR growth, further LBITDA loss reduction, and sufficient net cash to fund operations in FY26.

• Cost restructuring in FY24 and FY25 has set a path toward future profitability.