PCI-PAL (PCIP) H1 2026 earnings summary

Executive summary

• Achieved record new business and strong commercial momentum in H1 FY26, with ARR up 21% year-over-year to £20.3m and CARR up 18% to £24.0m, driven by partner-led sales and enterprise wins, especially in North America and the US.

• Revenue grew 7% year-over-year to £11.3m (14% on a normalised basis), with recurring revenue comprising 93% of total income.

• Platform uptime reached 100% in H1, with accelerated sales momentum from the partner ecosystem and increased deployment velocity.

• Strategic investments in platform, partner ecosystem, and leadership (including new CISO and US-based CMO) supported growth, while employee engagement and retention remained strong (97% retention, eNPS 45).

• Continued investment in product innovation, including fraud management, analytics, and upcoming customer authentication and self-serve onboarding.

Financial highlights

• ARR up 21% year-over-year to £20.3m; CARR up 18% to £24.0m.

• Revenue increased 7% year-over-year (14% normalized for deferred revenue), reaching £11.3m in H1.

• Recurring revenue now 93% of total, up from 91% last year.

• Gross margin at 87% (down from 90% prior period) due to timing of license revenue recognition; expected to improve in H2.

• Adjusted EBITDA at £0.2m, reflecting reinvestment of growth into the business and down from £1.0m in H1 FY25.

• Cash balance of £2.6m, with access to an undrawn £3m RCF facility.

Outlook and guidance

• Strong start to H2, with Q3 typically the strongest quarter due to partner year-ends and increased license revenue expected.

• Focus remains on executing the plan, aiming to beat current year targets and maintain profitable growth.

• Guidance for FY26 and beyond remains unchanged, with significant value inflection expected as ARR scales and operational leverage increases.

• Board confident in delivering full-year expectations, supported by high demand and robust pipeline.

• Continued strong commercial momentum into H2, with new enterprise deals and key partner signings.