Latent View Analytics (LATENTVIEW) Q1 25/26 earnings summary

Executive summary

• Achieved 10th consecutive quarter of growth, reaching $100 million revenue milestone in FY25, nearly doubling revenue since FY22, driven by strong client relationships and expansion in financial services.

• Added seven new clients in FY25, with 77% of revenue from clients served for over 5 years; existing accounts, especially in BFSI, also expanded significantly.

• Recognized as a leader in analytics by Forrester, ISG, CIM Research, and Analytics India Magazine, with multiple industry awards.

• Strategic focus on deepening client relationships, expanding Databricks partnership, and building GenAI/Agentic AI capabilities.

• Leadership transition with the Chief Client Officer departing; direct oversight of teams by the CEO.

Financial highlights

• Q1 FY26 operating revenue reached ₹2,360.23 million, up 31.9% year-over-year; includes ₹222 million from Decision Point acquisition.

• Financial services revenue grew 48.4% year-over-year; Decision Point showed strong recovery.

• Adjusted EBITDA for Q1FY26 was ₹523 million, margin at 22.2%, up 36.6% year-over-year but down 7.9% sequentially.

• PAT for Q1FY26 was ₹506 million, up 30% year-over-year, with a PAT margin of 19.5%.

• Basic EPS for Q1FY26 was ₹2.46, up from ₹1.89 year-over-year.

Outlook and guidance

• Confident in achieving and potentially exceeding 18%-19% USD revenue growth guidance for FY26, with strong order book and pipeline.

• Targeting $200 million revenue in three years, requiring a 26% CAGR; optimism supported by industry trends and internal momentum.

• Margins expected to normalize to 23%-24% in the long term, with short-term investments in Databricks and AI COEs.

• Transitioned to a new corporate tax regime, resulting in a lower tax rate and deferred tax credit of ₹48.7 million.

• Continued investment in talent upskilling and advanced analytics to drive future growth.