**Summary**
Fadel Partners, Inc. (FADEL), a global leader in AI-driven brand compliance and licensing software, released its 2025 trading update and FY 2026 outlook on January 28, 2026. Key highlights include
1. **FY25 Financial Performance**
Annual Recurring Revenue (ARR) increased by 13% to $8.9 million, driven by new contract wins and existing customer growth.
Revenue slightly declined by 4% to $12.6 million due to reduced lower-margin services revenue.
Adjusted LBITDA improved significantly to $0.8 million (from $3.9 million in FY24).
Cash and cash equivalents ended at $1.9 million, exceeding market expectations.
2. **Operational Achievements**
Secured key mid-market customers for the IPM Suite, including Handcraft Manufacturing and Viz Media.
Brand Vision won new clients like Comcast Communications and Ferrero, with strong upselling activity.
Launched **FADEL AIVAâ„¢,** an AI technology built on AWS Bedrock, to enhance licensing and marketing compliance operations.
Deployed an AI-enabled Product Approval system, integrating AIVAâ„¢ for streamlined product lifecycle management.
3. **FY26 Outlook**
Expected continued ARR growth, further reduction in LBITDA loss, and sufficient net cash to fund operations.
Focus on upselling, new customer acquisition, and cost control to drive profitability.
4. **Corporate Updates**
Joe Gruttadauria stepped down as Interim Head of Sales after strengthening sales processes and pipeline but remains a non-executive director.
Full-year audited results for FY25 expected in late April 2026.
FADEL remains confident in its ability to capitalize on growth opportunities, supported by its AI-driven innovations and operational efficiencies.