**Summary of Calnex Solutions PLC Interim Results for H1 FY26 (6 months ended 30 September 2025):**
Calnex Solutions PLC, a provider of test and measurement solutions for telecommunications, cloud computing, and defense markets, reported its interim results for the first half of FY26, highlighting steady progress and strategic investments.
**Financial Highlights**
**Revenue Growth** 9% increase to £8.0 million (H1 FY25: £7.4 million), driven by growth across all regions.
**Gross Margins** Remained resilient at 76% (H1 FY25: 74%).
**Underlying EBITDA** Improved by 38% to a loss of £0.7 million (H1 FY25: £1.1 million loss).
**Loss Before Tax** Reduced by 29% to £0.9 million (H1 FY25: £1.3 million).
**Cash Position** Healthy balance sheet with closing cash of £10.3 million (H1 FY25: £8.6 million).
**Interim Dividend** Proposed 0.31 pence per share, reflecting confidence in future prospects.
**Operational Highlights**
**Telecoms Market** Stable with increasing investment in test equipment, particularly for ultra-high-speed synchronisation testing.
**Product Launch** Continued demand for the newly launched Paragon neo-S across telecoms and adjacent markets.
**US Government & Defense** Early traction for Network and Application Assurance offerings, with growing understanding of market dynamics.
**Cloud Computing & Datacentres** Progress in identifying opportunities for infrastructure validation and application testing solutions.
**Partner Network Expansion** Ongoing expansion to increase market access.
**Strategic Hires** Key appointments in sales, marketing, and leadership to capitalize on growth markets.
**Partnerships** Collaboration with Viavi for O-RAN testing solutions, receiving positive customer feedback.
**Outlook**
**Telecoms** Well-positioned to convert sales pipeline once trading environment improves.
**US Defense** Strategic focus with significant long-term growth potential.
**Cloud Computing** Momentum from hyperscalers investing in datacentre operations.
**Investment** Continued controlled investment in people, products, and partners to capitalize on market opportunities.
**H2 Performance** Confident in continued growth, expecting full-year results in line with market expectations.
**CEO Statement**
Tommy Cook, CEO, emphasized Calnexs progress in evolving with market dynamics, leveraging its telecoms heritage to innovate across diverse sectors. The company remains focused on strategic growth, supported by a strong balance sheet and clear strategy.
**Market and Product Strategy**
**Telecoms** Tracking higher speeds and standards, with products like Paragon neo-S catering to 5G, O-RAN, and datacentre requirements.
**Cloud Computing & Datacentres** Identifying opportunities amid increasing datacentre demand driven by AI workloads.
**Government & Defense** Expanding footprint in the US and Europe, addressing high-stakes military application needs.
**Product Innovation** Continued R&D investment in telecoms and emerging markets, with a focus on high-speed synchronisation solutions.
**Channel and Operational Enhancements**
**Partner Network** Strengthening global partnerships, with new North American partners onboarded.
**Operational Strengthening** Enhanced sales, marketing, and product management capabilities to support growth.
**Financial Review**
**Revenue** 9% growth across all regions, with bundled hardware and software contributing 75% of revenues.
**Gross Margin:** Improved to 76%driven by strong product mix.
**Underlying EBITDA** Loss reduced due to revenue growth and improved margins.
**Cash Flow** Positive operating cash flow of £2.8 million, with continued investment in R&D.
**Conclusion**
Calnex Solutions PLC demonstrated resilience and strategic progress in H1 FY26, with revenue growth, improved margins, and strategic investments positioning the company for continued expansion across telecoms, defense, and cloud computing markets. The company remains confident in achieving full-year results in line with market expectations.