Quartix Technologies (QTX) H1 2025 earnings summary

Executive summary

• Achieved record growth in annualised recurring revenue (ARR) and customer acquisition in H1 2025, with nearly 320,000 vehicles under subscription and 60% of customers outside the UK, reflecting rapid international expansion.

• Refocused on core telematics subscription business, with strong product development including major hardware and firmware revisions and new web/mobile apps.

• Net revenue retention (NRR) improved to 97.3%, reflecting successful price indexation and high service quality.

• Profit before tax rose by 27% to £3.5m, with significant operating cost reductions and manufacturing efficiencies.

• Increased investment in sales and marketing to drive further ARR growth while reducing overheads.

Financial highlights

• Revenue for H1 2025 increased by 10% to £17.6m year-over-year, with gross profit up 10% to £12.3m and gross margin stable at 69.5%.

• Operating profit rose 31% to £3.5m; EBITDA up 30% to £3.7m.

• Earnings per share reached 5.52p, up from 4.37p last year.

• Free cash flow more than doubled to £2.5m; cash from operations up 72% to £3.2m.

• Interim dividend of 2.50p per share declared, payable 30 September 2025.

Outlook and guidance

• Board expects full-year 2025 results to be slightly ahead of market expectations, with positive outlook for H2 2025 and beyond.

• Six target markets identified as offering strong potential for future progress, with focus maintained for 2026.

• Overheads expected to remain broadly in line with H2 2024.