Netcall (NET) H1 2025 earnings summary

Executive summary

• Achieved accelerated growth and increased profitability, with revenue up 22% to GBP 23 million, driven by strong demand for cloud-based automation and engagement solutions.

• Cloud solutions drove growth, with Cloud ACV up 47% to GBP 29.9 million, now 76% of total ACV.

• Expanded product suite and customer base through innovation and strategic acquisitions, notably Govtech and Parble, with successful integration enhancing cross-sell opportunities.

• Focused on healthcare, public sector, and financial services, which account for 90% of operations.

• Recurring revenues rose to 86% of total revenue, supported by a high cloud net retention rate of 115%.

Financial highlights

• Revenue rose 22% year-on-year to GBP 23 million; organic revenue growth was 12%.

• Cloud revenues grew 45% year-on-year to GBP 13.4 million, now 58% of total revenue.

• Adjusted EBITDA increased 18% year-on-year to GBP 5.7 million, with a margin of 25%.

• Net cash position of GBP 22 million after GBP 12 million in acquisition payments; group cash at period end was GBP 22 million, down from GBP 34 million.

• Remaining performance obligations (RPO) up 23% year-on-year to GBP 71.1 million, providing strong revenue visibility.

Outlook and guidance

• Positive trading momentum continues into the second half, with confidence in meeting full-year expectations and strong demand for cloud and AI solutions.

• Expanded product portfolio and recent acquisitions expected to drive further growth in digital process automation and cloud contact centre markets.

• Focus remains on organic growth, product innovation, and evaluating further acquisition opportunities.