**Summary of Eagle Eye Solutions Group PLC Half-Year Results (H1 2026):**
Eagle Eye Solutions Group PLC, a leading provider of applied AI for marketing, reported strong financial performance for the six months ended 31 December 2025, exceeding initial expectations. Key highlights include
### **Financial Performance**
**Revenue Growth** Group revenue (excluding NRS impact) grew by 16% to £22.4 million, driven by a 24% increase in recurring revenue to £19.1 million. Including NRS, revenue slightly declined to £23.0 million.
**Annual Recurring Revenue (ARR)** ARR increased by 29% to £42.2 million, with new ARR in H1 2026 surpassing the entire FY 2025.
**Net Revenue Retention (NRR)** NRR (excluding NRS) improved to 108%, up from 104% in H1 2025. Including NRS, NRR was 99%.
**Profitability** Adjusted EBITDA was £4.3 million (18% margin), ahead of expectations, despite a 28% decline from H1 2025. Profit after tax was £0.1 million, down from £1.9 million in H1 2025.
**Cash Position** Net cash increased by 3% to £12.1 million, supporting investment in growth initiatives.
### **Strategic Highlights**
**New Customer Wins** Secured eight new multi-year contracts for the AIR platform and EagleAI solutions, including major wins in North America, Europe, and Asia. Notable wins include Wakefern, Kwik Trip, and FairPrice Co-Operative Ltd.
**US Market Expansion** Achieved £2.5 million in new ARR from four significant US wins, reflecting strengthened brand presence and refined go-to-market strategies.
**AI Growth** EagleAI revenues grew by 23% to £3.6 million, now representing 15% of Group revenues. Integration of AIR and EagleAI is delivering value through AI Personalised Promotions.
**OEM Partnership** Secured first two customer contracts through the OEM partnership, with expected ARR of £2.0 million, and material revenue generation expected from FY27.
**Operational Efficiency** Improved revenue mix with recurring revenues at 85% of Group revenues, up from 80% in H1 2025. Adjusted EBITDA margin exceeded expectations due to cost efficiencies and platform optimisation.
### **Outlook**
The Board is confident in delivering FY26 results in line with increased market expectations, targeting a 20% EBITDA margin run rate by the end of FY26.
Expects a return to double-digit revenue and EBITDA growth in FY27, driven by momentum in ARR growth, customer expansion, and AI innovation.
### **CEO Statement**
Tim Mason, CEO, highlighted strong execution, ARR growth, and progress in strategic priorities, including US market traction and OEM partnership success. Emphasised leadership in applied AI for retail and commitment to long-term value creation.
### **Key Metrics (H1 2026 vs H1 2025)**
**ARR (excl. NRS)** £42.2m (+29%)
**NRR (excl. NRS)** 108% (+4ppts)
**Group Revenue (excl. NRS)** £22.4m (+16%)
**Recurring Revenue** £19.1m (+24%)
**Adjusted EBITDA** £4.3m (-28%)
**Net Cash** £12.1m (+3%)
Eagle Eye remains focused on capturing the growing demand for AI-powered loyalty and personalisation solutions, with a disciplined approach to margin improvement and long-term growth.
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| KPIs excluding NRS | |||
| Period end Annual Recurring Revenue | £42.2m | £32.8m | +29% |
| Net Revenue Retention | 108% | 104% | +4ppts |
| Group Revenue | £22.4m | £19.3m | +16% |
| Recurring Revenue | £19.1m | £15.4m | +24% |
| KPIs including NRS | |||
| Group revenue | £23.0m | £24.2m | -5% |
| Recurring Revenue | £19.6m | £19.5m | +1% |
| Professional Services Revenue | £3.0m | £4.4m | -32% |
| SMS Revenue | £0.4m | £0.3m | +55% |
| Recurring revenue % of Group revenue | 85% | 81% | +5ppts |
| Period end Annual Recurring Revenue | £42.2m | £41.0m | +3% |
| Net Revenue Retention | 99% | 104% | -5ppts |
| Direct profit | £16.2m | £16.9m | -4% |
| Adjusted EBITDA | £4.3m | £5.9m | -28% |
| Adjusted EBITDA margin | 18% | 24% | -6ppts |
| Profit after tax | £0.1m | £1.9m | -93% |
| Net cash at 31 December | £12.1m | £11.7m | +3% |
Note: Debt information is not explicitly mentioned in the provided text. However, the "Net cash" metric can be used as a proxy for debt, where an increase in net cash indicates a decrease in debt or an improvement in liquidity.
This table compares the key financial metrics for Eagle Eye Solutions Group PLC between H1 2026 and H1 2025, including revenue, recurring revenue, EBITDA, and net cash. The "Change" column shows the percentage change between the two periods. Please note that the debt information is not explicitly mentioned in the provided text, so the table focuses on financial metrics and uses "Net cash" as a proxy for debt.