Quartix Technologies (QTX) H1 2026 earnings summary

Executive summary

• Subscription base reached 342,679 vehicles, up 7.4% year-over-year, with over half now outside the UK and Ireland.

• Customer base grew 6.2% to 33,550, with 64% now international.

• Annualized recurring revenue (ARR) rose 11% year-over-year to £38.9m.

• Operating profit increased 21% to £4.8m, with gross profit up 14% to £15.5m.

• 97% of revenue is from subscriptions, with average customer tenure of seven years and low customer concentration.

Financial highlights

• Revenue grew 12% year-over-year to £19.4m.

• Gross margin improved to 80%, driven by lower manufacturing and SIM costs.

• Adjusted EBIT and operating profit up 21% to £4.9m.

• Diluted EPS declined 15% to 5.51p due to a £1.1m prior-year tax adjustment.

• Free cash flow increased 18% to £3.0m, with net cash at period end of £4.8m.

Outlook and guidance

• Board confident in near-term outlook and long-term growth, focusing on ARR growth, efficiency, and new product launches (dashcams in Continental Europe, new tracking units in the US).

• Revenue, adjusted EBIT, and free cash flow expected to meet 2026 market expectations.

• Ongoing French upgrade programme and transition to 4G/5G technology.