Quartix Technologies (QTX) Trading Update summary

Financial performance

• Revenue estimated at £17.5m, up from £16.1m in 2024; EBITDA and profit before tax at £3.6m and £3.5m, respectively, both up from £2.7m.

• Free cashflow estimated at £2.6m, up from £1.1m; closing cash balance of £4.1m.

• Interim dividend of 2.5p per share expected.

• Profit figures include £0.4m reorganisation costs; free cashflow includes £0.5m 4G upgrade costs in France and £0.27m of reorganisation costs.

• Confident in meeting market expectations for revenue and EBITDA, ahead on free cashflow.

Growth and operational metrics

• Annualised recurring revenue (ARR) increased by £2.7m to £35.0m, a 13% rise.

• Net revenue retention improved to 97.3% from 95.7%.

• New customer acquisition rose 13% to 3,962; new subscriptions up 7% to 40,698.

• Customer base grew 11% to 31,588; total subscription base up 13% to 318,947.

• Strong ARR and subscription growth across all major markets, with Italy, Spain, and Germany showing highest percentage increases.

Strategic initiatives and outlook

• Combined two principal software teams and created a new front-end/user interface team to enhance product development.

• Overhead costs expected to reduce by £0.5m per annum from July 2025 due to reorganisation.

• Recruitment for senior front-end roles underway to support software enhancements.

• Focus on cost efficiency and best-in-class software to drive future growth.

• Confident in accelerated ARR growth and improved profitability for 2026.