Calnex Solutions (CLX) H2 2025 earnings summary

Executive summary

• Returned to profitability in FY 2025 with 13% revenue growth to £18.4m, driven by new product launches, improved go-to-market strategies, and expanded sales channels.

• Profit before tax was £0.7m, reversing a prior year loss of £0.4m.

• Diversified customer base and expanded into cloud computing, enterprise, and defence sectors to reduce reliance on telecoms.

• Transitioned from a single major reseller to a broader partner network, enhancing market reach and resilience.

• Paragon-neo S for 800Gb/s synchronisation testing launched in H2, with strong uptake in telecoms and data centre markets.

Financial highlights

• Revenue increased to £18.4m from £16.3m year-over-year, up 13%.

• Profit before tax was £0.7m, reversing a prior year loss of £0.4m.

• Gross margin improved to 75%, up 2 percentage points from the previous year.

• Year-end cash balance was £10.9m, rising to £12.7m in April after receivables collection.

• Underlying EBITDA margin rose to 6% from 0% in FY 2024.

Outlook and guidance

• Confident in continued revenue and profitability growth into FY 2026, supported by a healthy backlog and strong cash position.

• Ongoing investment in R&D and targeted hires to support expansion into new verticals and maintain innovation.

• No major product releases planned for FY 2026, but several minor enhancements and a new 1.6 Tb platform in development.