Half Year Trading Update

Fadel Partners Inc.

04 August 2026

 

4 August 2026

Fadel Partners, Inc.

('FADEL', the 'Company' or, together with its subsidiaries, the 'Group')

Half Year Trading Update

4 August 2026

FADEL (AIM: FADL), a global leader in AI-driven brand compliance and licensing software, today provides a trading update for the six months ended 30 June 2026 ("H1 2026"), based on unaudited management accounts.

H1 2026 Financial Highlights

●    Revenue of $4.8 million (H1 2025: $4.7 million), up 4%

●    Annual Recurring Revenue (ARR), of $9.4 million at 30 June 2026 (30 June 2025: $8.4 million), up 11% year-on-year, and up from $8.9 million at 31 December 2025

●    License and support revenue of $3.1 million (H1 2025: $2.4 million), up 25%

●    Services revenue of $1.8 million (H1 2025: $2.2 million), down 19%

●    Gross margin of 61% (H1 2025: 49%)

●    Total operating expenses of $4.1 million (H1 2025: $4.8 million), down 15%

●    Adjusted EBITDA loss of $1.1 million (H1 2025: $2.4 million loss), a 53% improvement

●    Cash and cash equivalents of $1.9 million at 30 June 2026 (H1 2025: $1.6 million), up 18%

Revenue and Margin

License and support revenue grew 25% to $3.1 million (H1 2025: $2.4 million), driven by new logo wins and upsells to existing customers in H2 2025 - consistent with the Group's disclosure in the January 2026 FY25 results RNS that the majority of ARR growth in FY25 occurred in the fourth quarter and was expected to have a greater impact on FY26 revenue than on FY25 revenue. Services revenue declined 19% to $1.8 million (H1 2025: $2.2 million), which was expected and consistent with what was discussed in the Group's FY 2025 year-end results.

Gross margin improved to 61% (H1 2025: 49%), reflecting the shift in revenue mix towards higher-margin license revenue together with a reduction in employee costs and the use of subcontractors within cost of sales, driven by the achievement of efficiencies in our services delivery structure.

Total operating expenses reduced by 15% to $4.1 million (H1 2025: $4.8 million), with the reduction spread across R&D, sales & marketing and G&A. As a result, the Adjusted EBITDA loss for H1 2026 narrowed to $1.1 million (H1 2025: $2.4 million loss), a 53% improvement year-on-year. Management continues to seek out ongoing efficiencies and where possible, further cost savings, creating room for new high-ROI spend as opportunities are identified.

Beginning with the 2025 year-end results, the Company's services revenue now includes revenue generated under recurring services subscription arrangements, rather than such revenue being included with license and support revenue. Likewise, Annual Recurring Revenue ("ARR") now comprises only recurring license and support revenue and no longer includes recurring services revenue. The prior period amounts have been reclassified to conform to this presentation.

ARR and Customer Activity

ARR grew to $9.4 million at 30 June 2026, up 11% from $8.4 million at 30 June 2025 and up from $8.9 million at 31 December 2025.

During H1 2026 the Group secured new customer wins including Wilson, Peachtree and FlexJet, alongside Bleacher Report and The Royal Mint. Upsell activity continued across the existing customer base, including expansions with L'Oréal, Philip Morris and The Coca-Cola Company.

For the twelve-month period ended 30 June 2026, NRR across all product lines was 104%.

Cash Position

Cash and cash equivalents at 30 June 2026 were $1.9 million (H1 2025: $1.6 million), up 18% year-on-year, reflecting the improved trading performance and cost discipline described above. The Group continues to have access to an undrawn $1.0 million credit facility with Bank of America, N.A., which has been renewed and now extends through 31 May 2027.

FY 2026 Outlook

Reflecting H1 2026 performance, management expects full-year 2026 revenue, adjusted EBITDA loss and cash to be in line with market expectations.

Operational Highlights

Building on the FADEL AIVA platform first announced on 22 January 2026, the Group continued to invest in AI-driven capability during H1 2026. In January 2026, the Group announced the go-live of its AI-enabled Product Approval system, incorporating the AIVA Reviewer Agent to automate early-stage compliance review of product submissions against brand guidelines and licensing terms. In May 2026, the Group launched AIVA Intelligence, a conversational AI capability providing real-time access to licensing agreement terms, deal structures and licensing intelligence within the IPM Suite and LicenSee platforms.

The Group has significantly expanded its sales pipeline, with active opportunities across both IPM Suite and Brand Vision, spanning enterprise and mid-market accounts. Marketing and outreach activity across Licensing and MarTech events in the US and Europe continued to generate qualified pipeline opportunities, with prospects showing strong interest in our AI initiatives.

Notice of Interim Results

The Group expects to publish its half-yearly report for the six months ended 30 June 2026, in accordance with AIM Rule 18, no later than 30 September 2026.

This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

For further information, please contact:

Tarek Fadel, Chief Executive Officer

Mark Plotkin, Chief Financial Officer

Cavendish Capital Markets Limited (Nomad & Broker)

Jonny-Franklin Adams, Isaac Hooper (Corporate Finance)

Sunila De Silva (ECM)

Tel: [phone]

FADEL Strategic Communications

Devi Gupta - [e-mail]

About Fadel Partners Inc.

FADEL delivers AI-enabled software to manage brand compliance and IP licensing with precision and confidence. Its cloud-based platforms help organizations govern content and usage rights at scale, streamline complex licensing and royalty processes, and reduce risk across global operations. Trusted by some of the world's most recognized brands in media, publishing, consumer goods, high-tech, and advertising, FADEL empowers teams to protect intellectual property, accelerate licensing workflows, and operate with clarity in an increasingly complex digital ecosystem.

The Group's main country of operation is the United States, where it is headquartered in New York, with further operations in the UK, France, Lebanon and Jordan.

For more information, please visit the Group's website at: fadel.com.

 

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