Cerillion (CER) H2 2025 earnings summary

Executive summary

• Achieved record highs across all key financial metrics for FY2025, with revenue up 4% to £45.4m, adjusted PBT up 10% to £21.8m, and net cash up 15% to £34.4m.

• New orders rose 25% to £48m, driving a 21% increase in the back order book to £56.9m.

• Secured two major contracts: £11.4m deal with Ucom (Armenia) and £25m+ expansion with an existing European customer.

• Expanded sales and marketing teams in the USA, Europe, and Asia, and launched new AI-driven product features.

• Confidence in pipeline and order book underpins positive outlook for 2026 and beyond.

Financial highlights

• Adjusted EBITDA margin increased by 3.5pp to a record 50.9%, benefiting from higher license revenue and services day rates.

• Revenue grew 4% year-over-year to £45.4m; adjusted profit before tax rose to £21.8m.

• Net cash at £34.4m, up 15%, and dividend per share up 17% to 15.4p.

• Gross margin improved to 81.5%; adjusted EPS increased to 56.5p.

• Recurring revenue metric grew at a 21% CAGR over five years, outpacing total revenue CAGR of 17%.

Outlook and guidance

• Record back-order book and strong sales pipeline position the business for growth in FY26 and beyond.

• 2026 analyst consensus margin at 45%, with management flagging potential for a slightly lower margin due to revenue mix and ongoing investment.

• Weighted sales pipeline at £65m, with substantial deals close to closure.

• Expecting revenue growth to be weighted towards H2 2026 (45% H1, 55% H2) due to timing of license revenue recognition.

• Progressive dividend policy maintained, with strong cash generation supporting future growth.