Northcoders Group (CODE) H1 2026 earnings summary

Executive summary

• H1 FY26 marked a strategic shift from government-funded training toward B2B corporate work; 76% of revenue recognised to date and currently contracted was from corporate customers.

• Lower training revenue and corporate work weighted to H2 drove the H1 decline; restructuring is substantially complete, leaving a lower fixed-cost base.

Financial highlights

• H1 FY26 revenue was £1.355m versus £3.671m in H1 FY25; gross profit was £746k versus £2.457m.

• Adjusted EBITDA was a £515k loss versus £405k profit; loss before tax was £665k versus £63k profit, and net loss was £663k versus £71k profit.

• Cash at 30 June 2026 was £553k versus £1.624m at 31 December 2025; net cash decreased by £1.071m during H1.

Outlook and guidance

• H2 revenue is expected to be materially ahead of H1; contracted H2 B2B revenue already exceeded H1 total revenue.

• H2 adjusted EBITDA loss is expected to be materially lower than H1, with Q4 FY26 expected to be EBITDA positive.

• FY26 Counter revenue recognised or contracted reached £2.4m by September; the near-term corporate opportunity pipeline was £3.6m, including £0.3m with potential FY26 recognition subject to conversion and timing.

• Operational cash flows are expected to be broadly neutral in H2 and cash positive in the subsequent year.