Northcoders Group (CODE) H2 2025 earnings summary

Executive summary

• FY2025 was a transition year as skills funding shifted from a national model to regional procurement, reducing volumes and delaying decisions.

• Strategic repositioning prioritised Counter consulting, targeted training and AI-enabled skills, alongside early cost reductions and a leaner cost base.

• Year-end cash was £1.62m; Counter momentum and Greater London Authority activity supported the FY2026 outlook.

Financial highlights

• FY2025 revenue was £4.95m vs £8.82m in FY2024; gross profit was £2.92m vs £5.90m.

• Adjusted EBITDA was a £605k loss vs £981k profit; operating loss was £2.86m and loss after tax was £3.03m.

• Year-end cash and cash equivalents increased to £1.62m from £1.19m.

Outlook and guidance

• FY2026 break-even is estimated at ~£5m revenue to cover the current cost base; management expressed confidence in reaching break-even, including on a cash-flow basis.

• FY2026 visibility included £1.5m Counter revenue contracted, £1m in deals at final stage and a further £4m+ active pipeline.

• Counter carried £1m of contracted FY2025 revenue into FY2026; H2 Counter revenue expectation was ~£1m.

• Training priorities included London delivery, private modular AI-focused courses and bootcamp funding; Greater London Authority budget was allocated.