H1 FY26 Trading Update

Microlise Group PLC

03 August 2026

 

3^rd August 2026

Microlise Group plc

("Microlise", "the Group" or "the Company")

H1 FY26 Trading Update

Direct Customer ARR +12% growth, significant margin recovery vs H2 2025 and strong cash performance; on track to meet FY26 profit expectations

Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, today provides a trading update for the six months ended 30 June 2026 (H1 FY26). The Group expects to publish its interim results in late September 2026.

Microlise delivered an H1 performance in line with management expectations, with continued growth in ARR and Direct Customer ARR, a significant improvement in adjusted EBITDA margins versus H2 2025, and an improved net cash position.

As anticipated, Group revenue was lower year-on-year, reflecting continued weakness in OEM revenues and lower non-recurring hardware revenues, including the impact of component availability and project timing, while underlying demand from the Direct Customer business remained strong.

Notwithstanding these factors, the Board continues to expect delivery of FY26 profitability in line with market expectations³. 

Financial Highlights (unaudited)

	H1 2026	H1 2025	Change
ARR at period end	£60.8m	£58.7m	+4%
Direct Customer ARR	£47.1m	£42.0m	+12%
Direct Customer NRR	106%	114%	(8 ppts)
Churn	1.1%	0.5%	+0.6 ppts
Group revenue	£39.5m	£44.1m	(10)%
Recurring Revenue	£29.9m	£29.5m	+1%
Adj. EBITDA	£5.2m	£6.2m	(16)%
Net cash	£13.8m	£11.2m	+23%

Trading Update

The Group expects to report revenue of £39.5m (H1 2025: £44.1m). Revenue performance reflected the previously flagged reduction in OEM revenues, lower non-recurring revenues following the completion of a major customer roll-out in the prior year, and the impact of component availability on the timing of certain hardware deployments and customer projects. These factors primarily affected OEM and non-recurring revenues, while the Direct Customer business continued to deliver strong recurring revenue growth.

Against this backdrop, the Direct Customer business continued to perform strongly. Direct Customer ARR increased by 12% to £47.1m (H1 2025: £42.0m), supported by customer renewals, expansion activity and new customer wins. Direct Customer NRR was 106% (H1 2025: 114%) which includes the previously flagged impact of managed churn. Commercial momentum remained encouraging across the period, including a significant 10-year renewal and expansion agreement with a long-standing customer, with a total contract value of over £20m. The renewal is expected to begin contributing incremental revenue towards the end of the current year and provides good revenue visibility into FY27.

While ARR relating to OEM customers reduced from £16.7m in H1 2025 to £13.7m in H1 2026, due mainly to lower renewals, the double-digit growth in Direct Customer ARR further increased the proportion of recurring revenue within the business. Recurring revenues represented 76% of total Group revenue in H1 FY26.

Adjusted EBITDA margin recovered to 13.2% in H1 2026, compared with 5.2% in H2 2025, reflecting the benefits of the restructuring implemented during FY25, alongside increased investment in the Group's Go To Market activity.  Adjusted EBITDA of £5.2m in H1 2026 increased 148% sequentially on H2 2025, demonstrating the Group's ability to improve profitability despite lower OEM and non-recurring revenues.

The Group retains a strong net cash position of £13.8m at 30 June 2026 (30 June 2025: £11.2m), supported by healthy cash collection, and in addition has a £30m undrawn debt facility, consisting of a £10m committed revolving cash flow facility and a £20m accordion.

Strategic initiatives

The Group continues to make good progress on its strategic initiatives, which aim to support long-term, sustainable growth, building on the Group's market leading offering and extensive blue-chip customer base.

·      Technology and product investment: is progressing to plan, including the continued advancement of the Microlise One strategy and the rollout of new AI platform capabilities. Highlights in H1 include a unified API Management Platform and Integration Mapping Tool, designed to simplify customer onboarding and integration, as well as continued investment in AI-enabled innovation and customer experience improvements, supporting the scalability and enhanced value proposition of Microlise's product portfolio.

·      Go to market capabilities: have been strengthened through investment into the sales team, which is expected to continue in H2 2026, and into FY27.

·      Upsell & Cross-sell-led ARR expansion: the healthy order intake in the period is a reflection both of new customer wins and increasing rates of expansion sales with our existing customers driven in part from our acquired businesses. Direct NRR in the period was 106%.

·      Margin enhancement and operational gearing: further progress on cost efficiency actions, supporting margin recovery and operational gearing, building on the restructuring delivered during FY25.

Outlook

While the well-documented global component shortages continued during H1, placing pressure on both pricing and availability of key hardware components, the Group has maintained good visibility of DRAM supply through to the end of Q3. The Group continues to work closely with suppliers, with some uncertainty remaining around the availability of key components for OEM hardware deliveries in Q4, which is expected to impact the timing of some new OEM customer go-lives.

However, demand from direct customers remains strong and the Group continues to have good visibility over this higher quality contracted recurring revenue. Accordingly, the Board continues to expect FY26 EBITDA to be in line with current market expectations³, supported by recurring revenue growth, margin recovery initiatives and the increasing contribution from the Direct Customer business.

The Board remains confident in the Group's ability to return to stronger growth in FY27, supported by double-digit Direct Customer ARR growth, customer expansion activity, improved margins, a healthy pipeline and the delivery of customer projects currently impacted by component availability shortages.

Nadeem Raza, CEO, Microlise said: "Microlise delivered a solid H1 performance, with Direct Customer ARR growing 12%, improved margins versus H2 2025, and a strong net cash position.

While OEM revenues remained subdued and component availability continued to affect the timing of certain hardware-related revenues, underlying demand from our direct customers remained strong. We continue to see encouraging levels of customer expansion activity, healthy new business opportunities and remain excited by the opportunity to grow returns from our investment in go-to-market capabilities.

Supported by improving margins, strong recurring revenue visibility and the continued growth of our Direct Customer business, the Board remains confident in delivering FY26 adjusted EBITDA in line with market expectations and in the Group's ability to accelerate growth in FY27."

Notes:

All financial information is based on unaudited figures.

1. Annual Recurring Revenue (ARR) is calculated by multiplying the June 2026 monthly recurring revenue by 12

2. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payments and exceptional costs

3. For the purposes of this announcement, the Group understands that market consensus for FY26 is:

·      for revenue, in the range of £84.2m to £84.3m;

·      for adjusted EBITDA, in the range of £10m to £11.1m; and

·      for net cash, in the range of £10.5m to £11.1m

4. Net Revenue Retention (NRR) represents the change in recurring revenue from existing customers over a 12 month period, after reflecting expansions, contractions and churn, excluding any new customer wins

Inside Information: This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information, please contact:

Microlise Group plc
Nadeem Raza, CEO Nick Wightman, CFO	C/O Alma Strategic Communications
Canaccord Genuity Limited (Nominated Adviser & Broker)
Simon Bridges / Harry Gooden / Andrew Potts / Elizabeth Halley-Stott	Tel: [phone]
Alma Strategic Communications
Caroline Forde/ Joe Pederzolli/ Anna Sutton	Tel: + 44 (0) 20 3405 0205 [e-mail]

About Microlise

Microlise Group Plc is a leading provider of transport and fleet technology to transport and logistic operators helping them to improve efficiency, safety, and reduce emissions. These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 2,500 clients, and a global workforce of 730 across the Group's headquarters in Nottingham in the UK, and offices in France, Australia, and India.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS) and qualifies for the London Stock Exchange's Green Economy Mark.

 

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