**Summary**
Tribal Group PLC, a leading provider of software and services to the international education market, released a trading update for the year ended 31 December 2025 (FY25), highlighting a strong performance. The company expects to report revenue and adjusted EBITDA slightly ahead of recently upwardly revised market expectations. Key achievements include
1. **Financial Performance**
Substantially improved net cash position of £11.4m (FY24: net debt of £3.2m), driven by increased profitability, reduced capex, exceptional working capital performance, and a one-off advance customer payment of £3.2m.
Healthy demand for Student Information Solutions (SIS), with key go-lives at prominent universities and significant product upgrades.
Etio, Tribals education services business, contributed improved performance due to operational efficiencies and strategic changes.
2. **Recurring Revenue Growth**
Closing Annual Recurring Revenue (ARR) increased by 11% to £63.3m, driven by new customer wins, upgrades, and the implementation of the Higher Education Full-Service (HEFS) subscription licence.
Contracted ARR grew by 14% to £65m.
3. **Strategic Progress**
Successful deployment of the HEFS subscription model, providing greater revenue visibility, margin resilience, and improved cash flow.
Continued momentum in SaaS transformation, with a large proportion of Higher Education customers onboarded to the subscription model, facilitating cloud migration and deeper customer engagement.
4. **Outlook**
The Group remains committed to driving recurring revenue growth and cloud adoption, supported by a strengthened balance sheet and long-term customer relationships.
Financial pressure on the Higher Education sector is accelerating demand for Tribals cost-effective digital transformation solutions, positioning the company for sustainable growth.
The Board anticipates adjusted EBITDA and cash performance in FY26 to exceed current market expectations.
**Notice of Results**Tribal Group expects to announce its audited full-year results on 26 March 2026.
**CEO Comment**Mark Pickett highlighted FY25 as a transformational year, with improved profitability, a return to net cash, and significant progress in the SaaS strategy. The company enters FY26 in a strong position, anticipating continued momentum and performance ahead of market expectations.