**Summary**
Quartix Technologies PLC, a leading provider of subscription-based vehicle tracking systems, reported strong financial and operational performance for the year ended December 31, 2025. Key highlights include
1. **Financial Performance**
Revenue and adjusted EBITDA exceeded market expectations.
Free cashflow reached £5.1m, despite significant outflows for a 4G upgrade program in France, restructuring costs, and a corporation tax pre-payment.
The company ended the year with a cash balance of £5.6m.
A proposed single ordinary dividend of 10 pence per share for the year, subject to AGM approval.
2. **Growth Metrics**
Annualised Recurring Revenue (ARR) increased by £4.5m (+14%) to £37m, outpacing 2024 growth.
Net Revenue Retention (NRR) improved to 98.1% from 95.7% in 2024.
New customer acquisition grew by 9%, and new subscriptions increased by 7%.
3. **Regional Performance**
Strong ARR growth in the UK (+11%)France (+15%)Italy (+43%)and Spain (+35%).
Moderate growth in the USA (+6%) and Germany (+26%), with plans for further improvement in 2026.
4. **Product Innovation**
Successful rollout of the TCSV17 telematics system and progress on the TCSV18 for UK/European and US markets.
Enhanced web and mobile application user interfaces, with positive feedback from alpha testing.
Expansion of connected dashboard camera solutions, integrated with tracking systems.
5. **4G Upgrade Programs**
Significant progress in France, with 18,000 units remaining to be upgraded by 2026.
Accelerated plans to replace 2G units in the UK due to earlier network sunsetting, with no expected material financial impact.
6. **Financial Reporting Review**
Ongoing discussions with the Financial Reporting Council (FRC) regarding the treatment of tracking system costs, which may shift from amortization to depreciation under IAS 16. No conclusions have been reached yet.
7. **Management Commentary**
Executive Chairman Andy Walters expressed satisfaction with the record ARR growth and strong financial performance, positioning the company well for 2026.
Overall, Quartix demonstrated robust growth, innovation, and financial resilience, with optimism for continued expansion in existing markets.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Revenue (£m) | 36.2 (expected) | Ahead of 36.2 | Not specified |
| Adjusted EBITDA (£m) | 7.7 (expected) | Ahead of 7.7 | Not specified |
| Free Cashflow (£m) | 4.4 (expected) | 5.1 | +0.7 (£16.8% increase) |
| Annualised Recurring Revenue (ARR) (£m) | 32.5 | 37.0 | +4.5 (£13.8% increase) |
| Net Revenue Retention (NRR) | 95.7% | 98.1% | +2.4% |
| Customer Base | 29,957 | 32,942 | +9% |
| Subscription Base (units) | 300,846 | 333,922 | +11% |
| New Subscriptions (units) | 74,000 | 79,576 | +7% |
| New Customers Acquired | 6,875 | 7,501 | +9% |
| Cash Balance (£m) | Not specified | 5.6 | Not specified |