Quartix Technologies (QTX) Trading update summary

Financial performance and cash flow

• Achieved strong free cash flow of £2.7m in Q1, with closing cash balance at £8.2m.

• Revenue and profit are on track to meet market expectations for 2026.

• Cash flow benefited from a £0.55m tax refund and a £0.35m delayed tax payment.

• Expected £1.1m corporation tax outflow now anticipated in Q2 2026.

ARR and customer metrics

• Annualised recurring revenue (ARR) rose by £1.6m in Q1 to £38.6m, up 12% year-on-year.

• Net revenue retention improved to 98.1% over the last twelve months.

• New customer acquisition in Q1 fell 8% to 2,021; new subscriptions dropped 13% to 19,301.

• Total customer base grew 8% to 33,443 and subscription base increased 9% to 339,491 on a TTM basis.

Geographic performance

• UK/EI ARR grew 8% to £20.28m; France up 14% to £10.48m; USA up 5% to £3.38m.

• Italy and Spain showed strong ARR growth at 39% and 32% respectively.

• Germany ARR increased 45% to £0.93m.