Craneware (CRW) H1 2026 earnings summary

Executive summary

• Achieved strong financial and operational performance in H1 FY26, with revenue up 6% to $105.7 million, ARR up 4% to $184.2 million, and adjusted EBITDA up 10%.

• Maintained high customer retention rates above 90% and NRR at 103%, with expansion sales and new customer wins increasing, including new hospitals accounting for 12% of new sales.

• Continued innovation through AI-powered solutions, new platform capabilities, and a deepened Microsoft partnership, driving future growth.

• Announced a $25 million share buyback and increased interim dividend by 11% to 15.0p per share.

• Approximately 90% of revenue is recurring, supporting high profitability and cash generation.

Financial highlights

• Revenue grew 6% year-over-year to $105.7 million, with adjusted EBITDA up 10% to $33.4 million and a 32% margin.

• Adjusted basic EPS rose 16% to $0.587, and basic EPS increased 38% to 28.6 cents.

• ARR increased to $184.2 million from $177.3 million a year ago.

• Operating cash conversion at 85%, with cash and cash equivalents at $71.2 million and bank debt reduced by 26% to $23.4 million.

• R&D spend increased 13% to $29.8 million, with 28% capitalized.

Outlook and guidance

• Confident in delivering FY26 results in line with expectations, supported by high expansion sales, healthy NRR, and new product launches.

• Two major AI-powered product launches planned for H2 FY26, expected to support FY27 revenue growth.

• Ongoing investment in R&D at approximately 25% of revenue to drive future product development.

• No concerns over achieving full-year cash conversion target of 90%-100%.

• Board sees significant long-term growth potential due to strong market positioning and evolving US healthcare landscape.