Software Circle (SFT) H2 24/25 earnings summary

Executive summary

• Achieved 13% revenue growth to £18.3m for FY25, driven by acquisitions and organic growth.

• Recurring revenue increased 38% to £12.7m, now 70% of total revenue.

• Operating EBITDA rose 71% to £4.8m, with adjusted EBITDA up 88% to £3.2m.

• Three acquisitions completed: Be The Brand, Link Maker, and Total Drive.

• Transitioned from net cash to net debt (£2.2m) after deploying £9.2m on acquisitions.

Financial highlights

• Revenue: £18.3m (FY24: £16.2m), up 13% year-over-year.

• Operating EBITDA: £4.8m (FY24: £2.8m), up 71%.

• Adjusted EBITDA: £3.2m (FY24: £1.7m), up 88%.

• Gross margin improved to 72% (FY24: 63%).

• Operating profit: £0.7m (FY24: loss of £3.2m).

• Statutory loss reduced to £0.3m (FY24: £2.4m).

• Operating cash flow per share: 0.5p (FY24: 0.6p).

• Net debt: £2.2m (FY24: net cash £6.9m).

Outlook and guidance

• Run-rate annual recurring revenue at year-end: £14.4m, up 42%.

• FY26 revenue expected to reach ~£20m, with continued focus on organic growth and disciplined M&A.

• Strong acquisition pipeline and financial headroom for further growth.