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RWS (RWS) investor relations material
RWS H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Marked a strategic pivot from service-led to technology-first, with AI and SaaS at the core of the business model, supported by new leadership, a refreshed operating model, and a brand relaunch.
SaaS transition accelerated, with SaaS now 46% of license revenue, up from 39% year-over-year.
Strong partnerships with Microsoft, AWS, Cohere, and Google Cloud underpin product innovation and market reach.
Acquisition of Papercup fully integrated, enhancing AI for video capabilities.
Industry awards and a robust product pipeline signal momentum into FY26.
Financial highlights
FY25 revenue was GBP 690.1 million, an organic constant currency decline of 0.7% year-over-year and down 3.9% reported.
Gross margin declined to 43.4%, mainly due to adverse mix, lower high-margin revenue, and operational challenges.
Adjusted profit before tax was GBP 60.4 million; adjusted basic EPS was 12.1 pence; total dividend per share was GBP 0.0705.
Adjusted EBITDA was GBP 100.8 million, with a margin of 14.6%, down 500 basis points year-over-year.
Operational free cash flow rose 46% to GBP 80.1 million, driven by working capital improvements and lower CapEx.
Outlook and guidance
FY26 guidance: Group revenue expected to grow low single digits, with 'Generate' segment mid-teens, 'Protect' mid-single digit growth, and 'Transform' low to mid-single digit decline.
Gross margin expansion of 150 basis points and adjusted operating margin up 100 basis points targeted for FY26.
Operational free cash flow conversion to normalize to 60-70% in the medium term.
Medium-term guidance: group growth to accelerate as technology-first offerings offset traditional service declines.
Capex as a percentage of revenue to see a modest increase.
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