Software Circle (SFT) H2 25/26 earnings summary

Executive summary

• Revenue grew 22% year-over-year to £22.3m, with recurring revenue up 33% to £16.8m, now 76% of total revenue.

• Adjusted EBITDA rose 83% to £5.8m, and Operating EBITDA increased 61% to £7.6m, with margins improving to 26% and 34% respectively.

• Two acquisitions (Artificial Intelligence Finance Ltd and Broker Information Services Ltd) expanded the portfolio, particularly in financial services.

• Organic growth in acquired companies was 7% for revenue and 23% for Operating EBITDA.

• The group’s strategy focuses on disciplined M&A, operational improvement, and decentralised management to drive compounding value.

Financial highlights

• Total revenue: £22.3m (2025: £18.3m); recurring revenue: £16.8m (2025: £12.7m).

• Operating EBITDA: £7.6m (2025: £4.8m); Adjusted EBITDA: £5.8m (2025: £3.2m).

• Operating profit flat at £0.7m; statutory loss increased to £0.8m (2025: £0.3m).

• Operating Cash Flow Per Share doubled to 1.1p (2025: 0.5p).

• Net debt increased to £11.4m (2025: £2.2m) due to acquisition activity.

Outlook and guidance

• Trading in the new financial year is in line with expectations; annualised revenue run-rate is £25.0m with a 27% aEBITDA margin.

• Acquisition pipeline remains healthy, with new £25.0m revolving credit facility and £10.0m accordion option secured post year-end.

• Targeting “Gate 5” milestone of £15m annualised aEBITDA within 3-4 years, aiming for a self-funded acquisition flywheel.