Microlise Group (SAAS) H1 2026 TU earnings summary

Executive summary

• H1 FY26 performance aligned with management expectations, with strong Direct Customer ARR growth, margin recovery, and improved net cash position.

• Group revenue declined year-over-year due to lower OEM and non-recurring hardware revenues, but recurring revenue from Direct Customers remained robust.

• Strategic initiatives advanced, including technology investment, sales team expansion, and operational efficiency improvements.

Financial highlights

• Direct Customer ARR grew 12% year-over-year to £47.1m; total ARR up 4% to £60.8m.

• Group revenue for H1 FY26 was £39.5m, down 10% from £44.1m in H1 FY25.

• Adjusted EBITDA margin improved to 13.2% in H1 2026 from 5.2% in H2 2025; adjusted EBITDA was £5.2m, up 148% sequentially.

• Net cash position increased to £13.8m from £11.2m year-over-year.

• Recurring revenues accounted for 76% of total Group revenue.

Outlook and guidance

• FY26 adjusted EBITDA expected to be in line with market consensus (£10m–£11.1m), supported by recurring revenue growth and margin recovery.

• Revenue guidance for FY26 is £84.2m–£84.3m; net cash expected in the range of £10.5m–£11.1m.

• Board confident in stronger growth for FY27, driven by Direct Customer ARR, customer expansion, and improved margins.