**Summary of Dotdigital Group plcs Interim Results for H1 FY26 (6 months ended 31 December 2025):**
**Financial Highlights**
**Revenue Growth** Total revenue increased by 4% to £44.2 million (H1 FY25: £42.4 million), with a 9% normalized growth (excluding low-margin CPaaS).
**Recurring Revenue** Core CXDP recurring revenue grew 11% to £37.3 million, representing 84% of total revenue.
**Contracted ARR** Forward-looking contracted ARR increased 13% to £75.4 million, with 6% organic growth.
**Profitability** Adjusted EBITDA was £13.6 million (31% margin), and adjusted profit before tax was £8.9 million (20% margin), impacted by strong comparatives and Social Snowball investment.
**Cash Position** Cash at period-end was £36.1 million, down from £45.7 million due to the $20 million Social Snowball acquisition payment.
**Operational Highlights**
**Core CXDP Momentum** Continued growth driven by demand for integrated, ROI-driven marketing platforms.
**Product Enhancements** WinstonAI improvements and strong WhatsApp adoption (message volumes up 2.3x vs H2 FY25).
**Acquisition Performance** Social Snowball ARR up c.30% annualized post-acquisition, with growth expected to accelerate.
**Partner Ecosystem** Integration-connected revenue up 5%, with Shopify revenue up 44% year-on-year.
**Post-Period Highlights**
**Alia Acquisition** Acquired Alia, an AI-powered pop-up and email/SMS list-growth tool, for up to $60 million, expanding zero-party data capture and Shopify footprint.
**Leadership Strengthening** Upcoming appointment of a Chief Revenue Officer to align regional execution and support scalable growth.
**Outlook**
**FY26 Guidance** Management remains confident of delivering FY26 results in line with market expectations on a constant currency basis, supported by strong recurring revenues, cash position, and product portfolio.
**Strategic Focus** Continued expansion of CXDP through innovation and M&A, with a focus on AI-enabled workflows and durable recurring revenues.
**Key Metrics**
**Average Revenue per Customer (ARPC)** Increased 7% to £1,968 per month (normalized).
**Retention Rates** Gross retention up c.2 percentage points, net retention up c.1 percentage point.
**Management Commentary**
CEO Milan Patel highlighted solid performance against strong comparatives, with double-digit core ARR growth, improving revenue quality, and resilient profitability. The focus remains on broadening the CXDP through innovation and M&A, with Alia acquisition strengthening data capture and Shopify presence.
**Investor Engagement**
**Analyst Presentation** Virtual session held on 10 March 2026.
**Investor Presentation** Open to shareholders via Investor Meet Company on 12 March 2026.
**Conclusion**
Dotdigital Group plc demonstrated resilient performance in H1 FY26, with strong growth in core CXDP metrics, strategic acquisitions, and a focus on scalable growth. Despite FX headwinds and customer cost consciousness, the company is well-positioned to meet FY26 expectations and continue its transition into a diversified, multi-product business.