Calnex Solutions (CLX) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 reached £8.0 million, up 9% year-over-year, with improved profitability and a strong cash balance of £10.3 million supporting ongoing investment and dividend payments.

• Gross margin increased to 76%, two percentage points higher than the prior year, reflecting a strong product mix.

• The company continues to innovate, launching the Paragon neo-S synchronisation tester and progressing on a 1.6Tb/s product for release in 2027, with early access to high-speed chipsets.

• Expansion into cloud, data center, and government/defense sectors is driving diversification beyond telecoms.

• Interim dividend of 0.31p per share declared, reflecting confidence in future growth.

Financial highlights

• Revenue grew 9% year-over-year to £8.0m, with growth across all regions and gross profit up £0.7m.

• Gross margin improved to 76%; EBITDA margin rose to 20%, and underlying EBITDA increased to £1.58m.

• Loss before tax reduced to £0.9m from £1.3m, with basic and adjusted EPS improving to (0.80)p.

• Net cash inflow from operating activities was £2.8m, with closing cash at £10.3m.

• R&D investment was £2.8m, slightly above the prior period due to inflation.

Outlook and guidance

• Management expects continued revenue growth and positive cash flows in H2, with FY26 results anticipated to meet market expectations.

• Targeting low double-digit revenue growth over the next few years, aiming for a return to 2022 profitability levels as new markets gain traction.

• Well positioned to benefit from telecoms recovery and growth in cloud, data center, and US defence markets.