Transense Technologies (TRT) H1 2026 earnings summary

Executive summary

• SAWsense and Translogik divisions delivered 39% revenue growth, with SAWsense up 74% and Translogik up 13% year-over-year for the six months ended 31 December 2025.

• Total group revenue declined 8% to £2.26m due to a 35% drop in Bridgestone iTrack royalty income following a contractual rate reduction and adverse currency movements.

• The company remained profitable and cash generative, posting a small profit before tax and maintaining a strong gross margin of 90%.

• Strategic plan targets high-value, recurring revenue streams in SAWsense and Translogik by the end of the decade, underpinned by Bridgestone iTrack royalty income.

• Investment in production processes and R&D continued, with a focus on scaling SAWsense and Translogik and expanding the business pipeline.

Financial highlights

• Revenue (excluding iTrack royalties) rose 39% to £1.25m; total revenue was £2.26m, down from £2.46m year-over-year.

• Gross margin held steady at 90%; period-end cash balance at £1.33m, rising to £1.77m post-royalty receipt.

• Profit before tax was £0.01m, down from £0.55m in the prior year period; EPS was 0.02p (vs. 3.61p prior year).

• Operating cash inflow reached £0.41m (up from £0.24m prior year); AEBITDA for the period was £0.33m (vs. £0.80m prior year).

• SAWsense revenue grew 74% to £0.66m; Translogik up 13% to £0.59m; Bridgestone iTrack royalty income fell 35% to £1.01m.

Outlook and guidance

• Pipeline opportunities in both SAWsense and Translogik are expanding in scale and quality, with strong customer interest expected to drive future growth.

• Management remains confident in the strategic plan and is focused on disciplined execution.

• No expectation to raise additional capital; cash forecasts maintain at least £1m headroom.

• Revenue and profit targets for 2030 (£12.5m revenue, £4m EBIT) seen as achievable, with upside potential if high-volume programs succeed.

• Full-year revenue guidance was downgraded on 30 January due to external headwinds.