Fintel (FNTL) H1 2026 earnings summary

Executive summary

• Revenue from continuing operations grew 5.3% year-over-year to £38.6 million in H1 2026, with adjusted EBITDA up 17% to £12.4 million and margin rising to 32.1%, driven by SaaS and subscription growth and operational efficiencies.

• Adjusted EPS increased 15.1% to 5.9p, and an interim dividend of 1.35p was declared.

• Strategic focus on integrating acquisitions, streamlining operations, and leveraging proprietary data and AI capabilities, with disposals of non-core businesses completed.

• High-quality recurring revenues and a progressive dividend policy underpin long-term value creation.

• Continued investment in technology platforms, notably Plannr and Matrix 360, and the launch of an AI-enabled compliance platform to drive scalable, higher-margin revenues.

Financial highlights

• SaaS and subscription revenues rose 7.9% to £26.1 million, now 68% of group revenue.

• Organic revenue growth of £0.7 million (2%) and £1.2 million from acquisitions.

• Adjusted EBITDA margin improved to 32.1% (up 320 bps year-over-year), driven by disposals of low-margin businesses and acquisition synergies.

• Operating cash conversion reached 144% in H1, with £7.3 million cash at period end and net debt at £38.2 million (1.4x EBITDA).

• Leverage remains comfortable at 1.4x, with £76.5 million headroom in a £120 million revolving credit facility.

Outlook and guidance

• Targeting 40% EPS growth over three years; 15.1% achieved in H1 2026.

• On track for 70–80% SaaS/subscription revenue mix, with focus on expanding Matrix 360 client base and launching AI-enabled compliance platform.

• Trading remains in line with Board and market expectations for the remainder of 2026.

• Board remains open to value-accretive M&A while focusing on organic growth.

• AI adoption expected to drive productivity, margin improvement, and new revenue streams.