FD Technologies (GYQ) H2 2025 earnings summary

Executive summary

• Achieved strategic goals for FY2025, including separation and repositioning as a high-growth software business, with KX as the sole continuing operation.

• Divested MRP and First Derivative, repaid all debt, and returned GBP 120 million to shareholders.

• Board unanimously recommended TA's cash offer valuing the company at GBP 24.50 per share (GBP 570 million total).

• Strong execution led to results ahead of expectations during a year of significant change.

Financial highlights

• KX generated an additional GBP 18 million in annual contract value, up 33% year-over-year, mainly from financial services and high-tech manufacturing.

• Annual recurring revenue reached GBP 81.8 million, a 13% year-over-year increase.

• Cash EBITDA loss improved to GBP 14.6 million from GBP 18.8 million, a 22% improvement.

• Revenue increased 2% year-over-year to GBP 80.7 million; recurring license revenues rose 11% to GBP 76 million, while service revenues fell 55% to GBP 3.8 million.

• Gross margin improved to 84% from 78% year-over-year, with software revenue margin around 90%.

Outlook and guidance

• Guidance maintained for at least 20% ARR growth in FY2026.

• Targeting positive cash EBITDA in FY2027.

• Strong ACV bookings in FY25 provide a solid foundation for the current year.