**Eagle Eye Solutions Group PLC H1 FY26 Trading Update Summary**
**Key Highlights**
**Strong Financial Performance** Eagle Eye Solutions Group PLC reported robust H1 FY26 results, exceeding Board expectations. Full-year FY26 profits are anticipated to surpass current market forecasts, driven by increased win rates, strong margin recovery, and the signing of first OEM contracts.
**ARR Growth** Annual Recurring Revenue (ARR) grew by 3% to £42.2m, with underlying ARR (excluding the Neptune Retail Solutions (NRS) contract loss) up 29%. New ARR in H1 FY26 exceeded the entire prior year, supported by multi-year contracts with major retailers.
**Revenue Growth** Group revenue (excluding NRS) increased by 16% to £22.4m, with SaaS revenue up 24% to £19.1m. Headline revenue slightly declined to £23.0m due to the NRS loss.
**OEM Progress** The first contracts under the global OEM agreement were secured, expanding the Group’s reach into new sectors. ARR from these contracts is estimated at £2.0m, with material revenue expected from FY27.
**Margin Improvement** Adjusted EBITDA margin stood at 18%, ahead of expectations, due to cost optimisation and SaaS transformation. The Board plans to selectively invest in growth initiatives while maintaining a 20% EBITDA margin run rate by FY26 year-end.
**Cash Position** The Group remained cash generative, ending the period with net cash of £12.1m, after £0.6m in share buybacks.
**Outlook** The Board is confident in delivering adjusted EBITDA ahead of market expectations for FY26 and anticipates a return to double-digit revenue and EBITDA growth in FY27, driven by momentum in North America, Asia, and OEM partnerships.
**Strategic Wins and Customer Engagements:**
Secured multi-year contracts with eight major customers, including leading retailers in Europe, North America, and Asia.
Deepened relationships with existing clients like Giant Eagle and PepCo.
OEM partner closed deals with two blue-chip European retailers, marking entry into new sectors.
**CEO Commentary**
Tim Mason, CEO, highlighted the success of the new sales structure, double-digit revenue growth (excluding NRS), and strengthened financial foundations. He emphasized the potential of the OEM agreement and the Group’s focus on AI-powered loyalty and personalisation solutions.
**Notice of Results**
H1 FY26 results will be announced on 17 March 2026.
**Conclusion**
Eagle Eye demonstrated strong H1 FY26 performance, with strategic progress in ARR growth, OEM partnerships, and cost optimisation. The Group is well-positioned for continued growth, with upgraded profit expectations and a focus on expanding its global footprint in AI-driven marketing solutions.
