Shearwater Group PLC, a cybersecurity, advisory, and managed security services company, reported its final results for the 15-month period ended June 30, 2025. The company achieved significant growth in revenue and adjusted EBITDA, with revenue increasing by 29% to £39.5 million and adjusted EBITDA rising by 91% to £2.2 million. This growth was primarily driven by the strong performance of the Groups Services division, which saw a 34% increase in revenue to £37.0 million.
Key highlights from the report include
**Financial Performance**Shearwater Groups revenue grew to £39.5 million, with an annualized growth rate of 29%. Adjusted EBITDA increased to £2.2 million, representing a 91% growth on an annualized basis. The company also reported an adjusted profit before tax of £0.6 million, compared to a loss of £0.6 million in the previous year.
**Operational Achievements**The Services division led the growth, with revenue reaching £37.0 million, a 34% annualized increase. Notable contract wins included a $12.8 million five-year deal with a leading global telco and an £8.4 million contract renewal with another telco. The company also secured supplier status on the UK Governments G-Cloud 14 framework, opening up more public sector opportunities.
**Strategic Investments**Shearwater invested in proprietary AI tools to enhance client solutions and improve tender response efficiency. Brookcourt Solutions, a subsidiary, achieved ISO 42001 certification for responsible AI management, a first for a UK organization.
**Software Division**While the Software division faced challenges, with revenue declining by 14% to £2.6 million, the company continued to invest in its multi-factor authentication solutions. Enhancements were made to improve security, management, and user experience, with the aim of returning the Software segment to growth in FY26.
**Outlook**The company expects the increasing frequency and complexity of cybersecurity threats to drive continued sector growth. Shearwater is well-positioned to capitalize on this trend due to its expertise, strong client relationships, and robust balance sheet. The growing pipeline of opportunities provides confidence in delivering further revenue and EBITDA growth in FY26.
**Financial Position**Shearwater maintained a strong financial position with closing cash of £5.1 million and no debt. The company also reported one-off exceptional costs of £11.3 million, primarily due to non-cash impairment charges and restructuring costs.
**Leadership and Governance**The company welcomed Jonathan Hall as the new Chief Financial Officer in August 2024. The Board remains focused on sustainable growth and value creation, supported by a clear strategic direction and a strong reputation in the cybersecurity industry.
Overall, Shearwater Groups results reflect significant progress in a challenging but opportunistic cybersecurity landscape. The companys strategic investments, operational achievements, and financial strength position it well for continued growth and success in the coming years.
| Metric | 2025 (15 months) | 2024 (12 months, restated) | Variance (annualized) |
|---|---|---|---|
| Revenue | £39.5m | £24.4m | +29% |
| Adjusted EBITDA | £2.2m | £0.9m | +91% |
| Adjusted Profit Before Tax | £0.6m | -£0.6m | N/A |
| Cash and Cash Equivalents | £5.1m | £5.0m | +2% |
| Debt | £0m | £0m | N/A |
Note: The 2025 figures are for a 15-month period, while the 2024 figures are for a 12-month period. The variance is calculated on an annualized basis.
Key Observations:
- Revenue increased by 29% year-on-year, driven by strong growth in the Services division.
- Adjusted EBITDA improved significantly, up 91% year-on-year, reflecting improved operational efficiency.
- The company maintained a strong financial position with £5.1m in cash and no debt at the end of the period.
- There was no debt in either year, indicating a conservative financial approach.