Microlise Group (SAAS) H2 2025 earnings summary

Executive summary

• FY 2025 saw strong cash flow and 16% growth in direct customer recurring revenue, offset by lower OEM revenues.

• GBP 5 million in annualized cost savings achieved via restructuring in December 2025, positioning for future investments and margin expansion.

• Onboarded a new CTO and accelerated AI deployment for operational efficiency and product enhancement.

Financial highlights

• Adjusted revenue up 4% year-on-year to GBP 84 million; recurring revenue up 8% to GBP 58.8 million.

• Direct customer revenue grew 16%, with net revenue retention at 108% and churn just over 1%.

• Operating cash flow reached GBP 13.3 million, ending with GBP 16.7 million in cash.

• Non-recurring revenues contracted due to lower OEM volumes and project delays, expected to recover in 2026.

• ARR increased from GBP 56.6 million to GBP 59.2 million, driven by direct customer growth.

Outlook and guidance

• OEM revenues expected to remain subdued through 2027, with recovery anticipated in late 2027 or early 2028.

• Double-digit direct customer revenue growth projected for 2026 and 2027.

• Investments in TMS product, mid-market expansion, and international growth to drive future performance.

• Margin expansion expected from revenue mix shift and operational efficiencies.