Nuix (NXL) H1 2026 earnings summary

Executive summary

• ACV grew 8.4% year-over-year to $234.4 million, with Neo ACV surging 148% to $46.8 million and now representing 20% of total ACV.

• Revenue increased 15.2% year-over-year to $121.2 million, driving adjusted management EBITDA up 42.6% to $19.1 million and statutory EBITDA up 72.7% to $26.5 million.

• Positive underlying and overall cash flow achieved, with a closing cash balance of $57.8 million, up 88.4% year-over-year.

• Launch of a comprehensive Neo migration program to accelerate customer transition and drive further ACV growth.

• Acquisition of Linkurious for up to €20 million to enhance graph technology and data visualisation, pending regulatory approval.

Financial highlights

• Adjusted management EBITDA margin expanded from 12.7% to 15.8%.

• Net dollar retention declined to 101% from 109.6% year-over-year, mainly due to downsell in large clients and project completions.

• Free cash flow conversion ratio reached 149%, with underlying cash flow of $28.4 million and free cash flow of $20.4 million.

• Multi-year deals accounted for 33% of revenue, up from 22% in the prior period.

• R&D spend was $28.8 million, representing 24% of revenue, with 43% capitalised.

Outlook and guidance

• ACV guidance for FY26 is reaffirmed at $240 million–$260 million, excluding any ACV from the Linkurious acquisition.

• ACV is expected to be weighted to the second half, consistent with renewal cycles.

• Focus remains on business transformation, Neo-driven ACV growth, revenue growth outpacing operating costs, and maintaining positive cash flows.

• Strategic focus on expanding Neo capabilities and migrating customers to the Neo platform.

• The Linkurious acquisition is expected to close in Q1 2026, enhancing AI and graph analytics capabilities.