FY26 Trading Update
Summary by AI BETAClose X
28 July 2026
Dotdigital Group plc
("Dotdigital" or the "Group")
FY26 Trading Update
Expanded platform driving higher ARR growth; FY26 performance in line with market expectations
Dotdigital (AIM: DOTD), the provider of a leading AI-powered marketing platform for customer acquisition, engagement, retention and advocacy, is pleased to announce a trading update for the year ended 30 June 2026 ("FY26"). The trading performance reported in this statement is based on unaudited management information.
Highlights
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Revenue, profit and cash in line with FY26 market expectations1.
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Forward-looking contracted ARR (core CXDP²) increased 18% to £85.4m (FY25: £72.6m), or 8% organically3, with the organic growth rate improving from 6% at the half year.
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Recognised recurring revenue (core CXDP) increased 14% to £76.8m (FY25: £67.3m), or 3% organically4, and increased to approximately 84% of Group revenue (FY25: 80%).
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Cash at 30 June 2026 totalled £17.1m (30 June 2025: £36.2m), after the initial outlay of US$30m on the acquisition of Alia.
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Alia and Social Snowball delivered ARR growth of 45% and 33%, respectively, during their periods of ownership in FY26.
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Further expansion of the Group's AI-enabled offering, extending Dotdigital's proposition across the customer lifecycle, alongside continued progress in strengthening global go-to-market execution. |
The Group enters FY27 with a larger contracted recurring-revenue base, improved revenue visibility and a broader opportunity to accelerate organic growth over the medium term.
Revenue was £90.9m (FY25: £83.9m), up 8%, or 9% on a constant-currency basis, with gross margin improving from 79% to 80% as the mix continued to shift towards higher margin core CXDP revenue. Core CXDP recurring revenue increased 14% to £76.8m, representing approximately 84% of Group revenue.
Excluding acquisitions, total Group revenue, which includes the non-core, low margin transactional messaging business, was flat, principally reflecting two previously announced factors: the exit of a contract in the low margin messaging business; and the unwinding of a strong H1 FY25 comparator for non-recurring core CXDP revenue, both of which are now fully reflected in the FY26 comparator.
Profit measures are expected to be in line with FY26 market consensus. As anticipated, margins improved in H2 as the planned increase in H1 investment moderated and go-to-market initiatives started to contribute. The Group continued to maintain discipline over costs and capital allocation while investing in areas expected to support stronger medium-term growth.
The Group's acquisitions are performing well, with Alia a standout performer in the four months since acquisition, increasing ARR to £10.0m at 30 June 2026 from £6.9m at acquisition. Social Snowball increased ARR by 33% during its first full year of ownership, from £4.1m to £5.4m which is expected to result in first-year deferred consideration of approximately US$1m becoming payable in FY27.
The Group has materially extended its proposition across the customer marketing lifecycle through product innovation and the integration of Social Snowball and Alia, with AI continuing to be a central focus, as it has been for many years. The Group continues to embrace AI, with the launch of its own MCP server during the year and, following the year-end, the launches of Agents in Dotdigital and Dotdigital Loyalty, which further embed AI across the platform, position Dotdigital within customers' increasingly AI-enabled marketing workflows, and create additional opportunities to win new customers and deepen existing relationships.
The Group is making good progress in reshaping its go-to-market model under its new Chief Revenue Officer, while investment in systems, processes and infrastructure is supporting more consistent execution at scale. These initiatives underpin the Board's confidence in delivering FY27 market expectations and accelerating organic growth over the medium term.
Milan Patel, CEO of Dotdigital, commented:
"We delivered FY26 in line with expectations and ended the year a stronger business, with a materially larger contracted recurring-revenue base, improving ARR momentum and excellent performances from Alia and Social Snowball.
"This year we built the platform we set out to create two years ago. With the launches of Dotdigital Loyalty, Agents and our MCP server, alongside Alia and Social Snowball, we now serve more of the customer lifecycle - acquisition, engagement, retention, loyalty and advocacy - and connect directly into the AI workflows marketers are adopting. Each addition opens more of our customers' marketing budgets to us, and more reasons for new customers to choose one platform over many.
"We have matched our product ambition with sharper commercial execution and continued investment in the leadership, systems and infrastructure required to scale. We enter FY27 with greater revenue visibility, a broader market opportunity and a more focused organisation. While market conditions remain mixed, we are confident in our ability to deliver in FY27 and beyond."
1 Consensus market expectations for FY26 at the date of publication: revenue £92.3m; adjusted EBITDA £29.1m (32% margin); adjusted profit before tax £19.7m (21% margin); and closing cash £16.3m.
2 The Core CXDP business includes Alia and Social Snowball, excluding their contribution as appropriate for each when referring to organic measures. It excludes the low-margin transactional SMS business known as CPaaS.
3 Organic growth in forward-looking contracted ARR excludes the £6.9m of ARR acquired with Alia on 3 March 2026; growth generated since acquisition is included as organic. On a constant-currency basis, forward-looking contracted ARR increased 18%, or 8% organically.
4 Organic growth in recognised recurring revenue from the core CXDP business excludes revenue attributable to Social Snowball and Alia from both periods. Social Snowball, acquired on 25 June 2025, contributed negligible revenue to FY25 and a full year to FY26; Alia, acquired on 3 March 2026, contributed approximately four months of revenue to FY26. On a constant-currency basis, recognised recurring revenue increased 15%, or 4% organically.
Contacts
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Dotdigital Group plc |
+44 (0)20 3953 3072 |
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Milan Patel, CEO |
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Tom Mullan, CFO |
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Alma Strategic Communications |
+44 (0)20 3405 0210 |
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Hilary Buchanan |
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David Ison |
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Will Merison |
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Canaccord Genuity (Nominated Adviser and Joint Broker) |
+44 (0)20 7523 8000 |
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Bobbie Hilliam |
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Elizabeth Halley-Stott |
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Cavendish Capital Markets Limited (Joint Broker) |
+44 (0)20 7220 0500 |
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Jonny Franklin-Adams, Corporate Finance |
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Sunila de Silva, Equity Capital Markets |
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Singer Capital Markets (Joint Broker) |
+44 (0)20 7496 3000 |
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Shaun Dobson |
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Jen Boorer |
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About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of AI-powered marketing automation and personalisation technology. Its customer experience and data platform ("CXDP") brings together customer data, intelligent automation and cross-channel campaign execution, supported by an expanding suite of capabilities spanning customer acquisition, engagement, personalisation, loyalty and advocacy.
By simplifying complexity and routine execution, Dotdigital helps marketers deliver relevant customer experiences at scale while retaining the control and creativity needed to build meaningful connections.
Founded in 1999 and headquartered in London, Dotdigital has offices in Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw and Cape Town. Its technology is used by more than 9,800 brands across 150 countries.
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