Nuix (NXL) H1 2025 earnings summary

Executive summary

• Annualised Contract Value (ACV) grew 8.3% year-over-year to AUD 216.2 million, with 97% from subscription licences and strong customer tenure; Nuix Neo platform rollout accelerated, with ACV for Neo up 361% to AUD 18.9 million and customer count rising from 8 to 46.

• Statutory revenue increased 6.9% year-over-year to AUD 105.2 million, driven by growth in Nuix Neo, Asia Pacific, and North America.

• Cash EBITDA rose 30.6% to AUD 13.4 million, while statutory EBITDA declined 10.8% to AUD 15.3 million due to non-operational legal and restructuring costs.

• Net loss after tax widened to AUD 10.4 million from AUD 4.8 million year-over-year, reflecting increased investment, legal, and restructuring costs.

• Underlying cash flow remained positive at AUD 7 million, with a closing cash balance of AUD 30.7 million and minimal debt utilization.

Financial highlights

• Net Dollar Retention at 109.6%, down from 110.1% year-over-year due to higher churn and longer procurement cycles.

• Churn rate at 5.4%, mainly from North America and a large EMEA customer loss.

• R&D spend increased 7.2% year-over-year, with a higher expense component and focus on customer improvements and Horizon 3 development.

• Multi-year deals comprised 22% of revenue, down from 24% prior year; subscription revenue remains high at 94%.

• Gross margin stable at 89.8%; cash EBITDA margin at 12.7% for H1 FY25.

Outlook and guidance

• Full-year ACV growth expected in the 11%-16% range (constant currency), reflecting variability in procurement cycles.

• Revenue growth targeted to exceed operating cost growth; underlying cash flow to remain positive for the full year.

• Continued rollout of Nuix Neo and focus on higher value, enterprise contracts; strong H2 anticipated as larger deals close.