Results for the six months ended 30 June 2026

Pathos Communications PLC

09 September 2026

 

9 September 2026

  

Pathos Communications plc

Half Year Results for the six months ended 30 June 2026

Strong growth in revenue, profits and margins;

Benefits of H1 2026 investments now being realised

Pathos Communications plc (AIM: NEWS), the leading PR technology business, announces its unaudited interim results for the six months ended 30 June 2026.

US$000	H1 2026	H1 2025	% change
Revenue	7,339	6,420	14%
Gross profit	5,207	5,196	-
Adjusted EBITDA	1,732	1,271	36%
Adjusted EBITDA margin	23.65%	19.8%	+3.87%
Profit before tax (reported)	964	759	27%

Financial Highlights

·    Double digit percentage growth in revenue and adjusted EBITDA

o  Revenue of US$7.3 million (H1 2025: US$6.4 million), an increase of 14%

o  Adjusted EBITDA ¹ of US$1.7 million (H1 2025: US$1.3 million), an increase of 36%

·    Strong cash generation

o  Cash receipts from customers of US$7.9 million (H1 2025: US$ 4.3 million), an increase of over 80% demonstrating improved quality in the sources of revenue

o  Net cash of US$5.9 million (30 June 2025: $0.8 million; 31 December 2025: US$6.2 million)

Strategic and Operational highlights

·    Strengthening client relationships as the Company scales

o  Repeat customers represented 36% of H1 2026 revenue (H1 2025: 16%)

o  Recent run rate of new contracts signed in the repeats business tracking at over 75% of the current 2027 revenue market expectation on an annualised basis ²

o  Largest ever customer contract, a US$0.7 million one-year contract, won in May 2026

·    Successful investment in workforce

o  New sales team management structure increased new client sign-ups by approximately 30% following inception

o  Launch of dedicated Asia Pacific (APAC) operation showing early, positive signs

·    Ongoing innovation and geographic expansion

o  New products, including podcast services, book publishing and slots on prime business TV channels

o  24-month agreement signed with one of the "Big Three" US news periodicals

o  Pressella (Pathos's AI virtual publicist) and PathosMind development on track to be offered to all clients in H1 2027.

Current Trading and Outlook

As announced on 27 July 2026, the work undertaken and the investments made during H1 2026 has positioned Pathos for accelerated growth in the second half. This is now being evidenced, with a record revenue month in July and trading to the end of August also significantly ahead of the prior year.

The Board is particularly excited about the progress made with Pressella and PathosMind, which are on track for being generally available during H1 2027.  The Directors believe that the successful rollout of this technology, resulting in the provision of a virtual publicist becoming available to SMEs worldwide, will transform both their PR capabilities as well as the business opportunity for Pathos.

The Board therefore remains confident in the Company meeting, or being slightly ahead of, full year market expectations² and is very optimistic about the future.

Omar Hamdi, Founder and Chief Executive Officer, commented:

"H1 2026 has been a period of strong delivery for Pathos with revenue, profits and cash receipts all increasing while we continued to invest the proceeds of our successful IPO behind the next phase of growth. The period saw us broaden our product offering, secure strategic publisher partnerships, strengthen our sales organisation and continue to advance Pressella, our proprietary AI platform, which we believe has the potential to transform both our operations and customer acquisition capabilities."

Investor Presentation

Omar Hamdi, Chief Executive Officer, and Adam Hurst, Chief Financial Officer, will host a live presentation and Q&A via Investor Meet today, 9 September 2026, at 10:00am BST. The presentation can be accessed via: https://www.investormeetcompany.com/pathos-communications-plc/register-investor

Notes:

¹ Earnings before Interest, Tax, Depreciation and Amortisation adjusted for share-based payments and, in the prior year, one-off non-recurring costs incurred in the lead up to the IPO

² Market expectations for FY 2026: Revenue of US$14.0 million and Adjusted EBITDA of US$4.0 million; 2027: Revenue of US$15.3 million.

For additional information, please contact:

Pathos Communications plc Omar Hamdi - CEO Adam Hurst - CFO Mark James - Investor relations	[e-mail]
Strand Hanson Limited (Nominated & Financial Adviser) James Harris Rob Patrick Edward Foulkes	[phone]
Cavendish Capital Markets Limited (Broker) Stephen Keys / George Lawson / Elysia Bough - Corporate Finance Michael Johnson / Sunila de Silva - Sales and ECM		[phone]

About Pathos

Pathos Communications is a technology-enabled, human-led PR company that was established to democratise SMEs' access to established news publications to fuel their business growth. The Company operates a differentiated approach to the traditional PR model of long-term subscription fees, by offering a "pay-on-results" model, thereby providing an opportunity for the over 400 million SMEs globally, which typically have lower PR budgets.

Business and Financial Review

Pathos is pleased to report a strong first six months as a public company.

Double digit percentage revenue growth with new products and broader distribution

Revenue for H1 2026 was $7.3 million, an increase of 14% on the prior year (H1 2025: $6.4 million) reflecting ongoing product innovation and scaling of the Company's sales channels.  Gross margin in H1 2026 of 71% was ahead of H2 2025 of 69% (H1 2025 81%) and on an improving trajectory following refocus in H2 2025 to increase weighting of placements in premium media outlets to drive client retention.

	H1 2026 $m	H1 2025  $m
Revenue	7.33	6.42
Gross profit	5.21	5.20
Gross margin (%)	71%	81%
Administrative expenses (underlying)	(3.20)	(2.38)
Bad debt expense	(0.28)	(1.55)
Adjusted EBITDA 1	1.73	1.27

¹ The Company reports both statutory (reported) and adjusted profitability measures as the Board considers adjusted metrics to provide a more useful indication of underlying operational performance.

Growth in profits and margins

Adjusted EBITDA increased by 36% compared to the same period in 2025, up to $1.7 million (H1 2025: $1.3 million). This was delivered despite investments made in growth initiatives during H1 2026, and also the increased head office cost base following the IPO in December 2025.  The expansion in adjusted EBITDA margin from 20% in H1 2025 to 24% in H1 2026 reflects both the ongoing effects of operational gearing as the Company continues to grow revenues, the greater opportunities being driven by the Company's ongoing technological innovation and significantly reduced bad debt write offs following the introduction of new processes in H1 2025.

Product innovation

During H1 2026, Pathos continued to diversify its offering, including the introduction of podcast services, book publishing and access to TV slots on a number of well-known business channels.  Pathos also entered into a strategic 24-month agreement with one of the "Big Three" US news periodicals, establishing a new relationship with a tier-one publisher and continuing to increase the range and quality of publications available to our customers.

Scaling the Company's sales channels and geographic spread

During H1 2026 Pathos invested in new sales managers, creating more focused teams to support the continued scaling of operations. This is already producing results with new client sign-ups rising by approximately 30% following inception.  In addition the recent annualised run rate of new contracts in the repeats business are tracking at over 75% of the current 2027 revenue market expectation, underpinning Directors' confidence in the business.

Pathos also continues to invest in geographic growth with a dedicated APAC operation launched in the period which, although at an early stage, is showing positive signs.  

Technological innovation

Testing of Pressella (Pathos's AI 'virtual publicist') indicates that it has at least 7x the success rate of human colleagues in sales development activities. Following the appointment of Scott Feltham as CTO, the Company has expanded both the scope of Pressella's training and the areas of the business in which it operates. The Company remains confident in Pressella and PathosMind achieving general availability in H1 2027.

Pathos is also exploring providing Generative Engine Optimisation (GEO) solutions to its customers. This involves structuring customer publications so that AI search tools such as ChatGPT can identify customer articles as primary sources as they process, summarise and cite information.

Outlook

The second half of the year has started well, including record revenues in July, and trading to the end of August also significantly ahead of the prior year.  The Board remains confident in performance for the rest of the year and very optimistic about the future.

Additional financial information

	H1 2026 $m	H1 2025  $m
Adjusted EBITDA	1.73	1.27
Depreciation and amortisation	(0.50)	(0.35)
Net finance charges	(0.06)	(0.08)
Adjusted profit before tax	1.17	0.84
Adjusting items	-	(0.08)
Share-based payment charge	(0.21)	-
Profit before tax (reported)	0.96	0.76

Depreciation, amortisation and finance charges include the Company's office and customer databases, which increased over the prior period due to the impact of the growing investment to underpin future growth.  

Adjusted pre-tax profit of $1.2 million was consequently 39% ahead of prior year (H1 2025: $0.8 million).

Adjusting items in the prior year comprise initial costs incurred in preparation for admission to the AIM market that subsequently took place in December 2025.

The reported profit after tax was $0.9 million (H1 2025: $0.8 million).  Tax charges are low in both years due to the structure of the Group's activities.

The Group ended H1 2026  with net cash of $5.9 million at 30 June 2026 (30 June 2025: $0.8 million; 31 December 2025:  $6.2 million).  A summary of the Group's cash flows was as follows:

	H1 2026 $m	H1 2025 $m
Profit for the period	0.93	0.74
Add back:
Amortisation & Depreciation	0.49	0.35
Share-based payments	0.21	-
Finance and tax expenses	0.10	0.09
	1.73	1.18
Net change in working capital	0.01	(0.04)
Cash generated from operations	1.74	1.14
Purchase of intangible assets	(1.71)	(0.15)
Lease payments	(0.33)	(0.30)
Tax	-	(0.07)
Movement in cash	(0.30)	0.62
Effect of exchange rate changes	(0.02)	(0.03)
Cash at start of the period	6.24	0.22
Cash at end of period	5.92	0.81

Capital expenditure mainly comprises investment in intangible assets, including development of the Group's AI platform and purchase of customer databases.

Lease payments arise on the Group's main office.

Net assets at 30 June 2026 were $7.1 million (30 June 2025: $1.0 million; 31 December 2025: $5.9 million), principally comprising cash balances as the funds raised at IPO are being spent and replaced with strong cash generation in the business.  Other than the office lease the Company has no external debt.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Unaudited		Unaudited
		Six months		Six months	Year ended
		to 30 June		to 30 June	31 December
		2026		2025	2025
	Note	$000		$000	$000
Revenue		7,339		6,420	13,083
Cost of sales		(2,132)		(1,224)	(3,299)
Gross profit		5,207		5,196	9,784
Administrative expenses		(4,181)		(4,359)	(10,165)
Operating profit/(loss)		1,026		837	(381)
Adjusted EBITDA	4	1,732		1,271	2,871
Depreciation and Amortisation		(496)		(349)	(707)
Adjusting items		-		(85)	(2,259)
Share-based payments		(210)		-	(286)
Operating profit/(loss)		1,026		837	(381)
Net finance expense		(62)		(78)	(145)
Profit/(loss) before tax		964		759	(526)
Tax expense		(39)		(15)	(104)
Profit/(loss) for the period		925		744	(630)
Other comprehensive income/(loss):
Exchange arising on translation on foreign operations (net of tax)		3		(27)	(61)
Total comprehensive income/(loss)		928		717	(691)

Earnings/(loss) per share attributable to the ordinary equity holders of the parent (cents)

Basic	5	1.39	37,200,000	(7.79)
Diluted	5	1.25	37,200,000	(7.79)
Adjusted Basic	5	1.70	1.24	2.92
Adjusted Diluted	5	1.53	1.12	2.63

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			Unaudited 30 June  2026		Unaudited 30 June  2025	31 December 2025
		Note	$000		$000	$000
Assets
Non‑current assets
Property, plant and equipment			1,446		2,006	1,725
Other intangible assets		6	1,970		266	471
Other non‑current investments			17		18	17
			3,433		2,290	2,213
Current assets
Trade and other receivables		8	1,329		1,193	934
Cash and cash equivalents			5,916		808	6,241
			7,245		2,001	7,175
Total assets			10,678		4,291	9,388
Liabilities
Non-current liabilities
Lease liabilities			1,053		1,510	1,351
			1,053		1.510	1,351
Current liabilities
Trade and other payables		9	1,986		1,141	1,585
Lease liabilities			589		623	540
			2,575		1,764	2,125
Total liabilities			3,628		3,274	3,476
Net assets			7,050		1,017	5,912
Share capital			88		-	88
Share premium			5,983		-	5,983
Foreign exchange reserve			(123)		(91)	(126)
Share-based payment reserve			496		-	286
Retained earnings			606		1,108	(319)
Total equity			7,050		1,017	5,912
Total equity and liabilities			10,678		4,291	9,388

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share Capital		Share premium		Foreign Exchange reserve		Share- based payment reserve		Retained earnings		Total attributable to equity holder of parent
	$000		$000		$000		$000		$000		$000
At 1 January 2025	-		-		(65)		-		364		299
Profit for the period	-		-		-		-		744		744
Other comprehensive loss	-		-		(26)		-		-		(26)
Balance at 30 June 2025	-		-		(91)		-		1,108		1,107
(Unaudited)
At 1 January 2025	-		-		(65)		-		364		299
Loss for the year	-		-		-		-		(630)		(630)
Other comprehensive loss	-		-		(61)		-		-		(61)
Issue of share capital	88		5,983		-		-		-		6,071
Capitalisation/bonus issue	-		-		-		-		(53)		(53)
Share-based payments	-		-		-		286		-		286
At 31 December 2025	88		5,983		(126)		286		(319)		5,912
Profit for the period									925		925
Other comprehensive income	-		-		3		-		-		3
Share-based payments	-		-		-		210		-		210
At 30 June 2026	88		5,983		(123)		496		606		7,050
(Unaudited)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		Unaudited 6 months to 30 June  2026		Unaudited 6 months to 30 June 2025	Year ended 31 December 2025
		$000		$000	$000
Cash flows from operating activities
Profit/(loss) for the period		925		744	(630)
Adjustments for:
Depreciation of property, plant and equipment		279		276	556
Amortisation of intangible fixed assets		217		73	152
Share-based payments		210		-	286
Finance expense		62		78	145
Income tax expense		39		15	104
		1,732		1,186	613
Increase in trade and other receivables		(395)		(788)	(530)
Increase in trade and other payables		401		739	1,189
Cash generated from operations		1,738		1,137	1,272
Income taxes paid		-		(71)	(176)
Net cash from operating activities		1,738		1,066	1,096
Cash flows from investing activities
Purchase of property, plant, and equipment		-		(9)	(9)
Purchase of intangibles		(1,716)		(140)	(426)
Net cash used in investing activities		(1,716)		(149)	(435)
Cash flows from financing activities
Issue of ordinary shares, net of costs		-		-	6,018
Net interest income/(charge) excluding lease charges		1		-	(11)
Payment of lease liabilities		(326)		(301)	(596)
Net cash from financing activities		(325)		(301)	5,411
Change in cash and cash equivalents in the period		(303)		616	6,072
Effect of exchange rate changes on cash and cash equivalents		(22)		(27)	(50)
Cash and cash equivalents at the beginning of year		6,241		219	219
Cash and cash equivalents at the end of the period		5,916		808	6,241

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.     Basis of preparation and approval of interim statements

The financial information for the six months ended 30 June 2026 and for the six months ended 30 June 2025 is unaudited.  The interim financial statements for the six months to 30 June 2026 do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended 31 December 2025.

The financial information has been prepared on the basis of UK adopted international accounting standards (IFRS) that the Directors expect to be applicable as at 31 December 2026.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2025 ('Annual Report'), which were prepared in accordance with IFRS.

This interim financial statement does not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2025 were approved by the Board on 4 May 2026 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

AIM-quoted companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has not applied this standard in preparing this report.

The interim financial statement was approved by the Board of Directors on 8 September 2026.

2.     International Financial Reporting Standards

The Group follows the standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee of the IASB and endorsed by the UK that are relevant to its operations.

3.     Going concern

The Group's business activities together with factors likely to affect its future development, performance, position  and principal risks and uncertainties were set out in the Strategic Report section of the Annual Report. The Directors have reviewed the cash flow forecasts for the period up to and including 31 December 2027. Based on the above, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for at least twelve months from the publication date of these interim financial statements. For this reason the Directors continue to adopt the going concern basis in preparing the interim financial statements.

4.     Measures of profit

To provide shareholders with a better understanding of the trading performance of the Group, alternative performance measures (APMs) are included to adjust for items which can distort the underlying performance of the Group.  A reconciliation of reported items to the adjusted items is set out below:

	Unaudited Six months to 30 June 2026	Unaudited Six months to 30 June 2025	Year ended 31 December 2025
	$000	$000	$000
Profit/(loss) before tax	964	759	(526)
Adjusting items	-	85	2,259
Share-based payments	210	-	286
Adjusted profit before tax	1,174	844	2,019
Depreciation and amortisation	496	349	707
Net finance costs	62	78	145
Adjusted EBITDA	1,732	1,271	2,871

Adjusting items in 2025 comprise initial costs incurred in preparation for admission to the AIM market that subsequently took place in December 2025.

Adjustments to earnings/(loss) per share calculations are set out in Note 5.

5.     Earnings/(loss) per share

Earnings/(loss) per share is calculated based on the information set out below. The adjusted weighted average shares in 2025 is based on assuming the same number of shares were in issue for the entire year.  Diluted basic loss per share in 2025 is the same as Reported loss per share as, under IAS 33 Earnings per share, conversion of shares is not considered dilutive as it would not increase the loss per share.

Earnings	Unaudited Six months to 30 June 2026	Unaudited Six months to 30 June 2025	Year ended  31 December 2025
	$000	$000	$000
Profit/(loss) for the period	925	744	(630)
Adjusting items, including share-based payments	210	85	2,546
Tax on Adjusting items	-	(1)	28
Adjusted Earnings	1,135	828	1,944

Weighted Average Shares (Number)
Basic	Reported	66,666,666				2		8,083,712
	Adjustments	-				66,666,664		58,582,954
	Adjusted	66,666,666				66,666,666		66,666,666
Diluted	Reported	74,046,662				2		15,463,708
	Adjustments	-				74,046,660		58,582,954
	Adjusted	74,046,662				74,046,662		74,046,662

Earnings/(loss) per share (Cents)
Reported	Basic		1.39			37,200,000	(7.79)
	Diluted		1.25			37,200,000	(7.79)
Adjusted	Basic		1.70			1.24	2.92
	Diluted		1.53			1.12	2.63

6.     Intangible assets

	Contact databases		Computer Software		Total
	$000		$000		$000
Cost
At 31 December 2024	223		72		295
Additions in year to 31 December 2025	149		277		426
At 31 December 2025	372		349		721
Additions in period	832		884		1,716
At 30 June 2026	1,204		1,233		2,437
Accumulated amortisation and impairment
At 31 December 2024	74		24		98
Charge for year to 31 December 2025	92		60		152
At 31 December 2025	166		84		250
Charge for the period	155		62		217
At 30 June 2026	321		146		467
Net book value
At 30 June 2025	151		115		266
At 31 December 2025	206		265		471
At 30 June 2026	883		1,087		1,970

Computer software comprises amounts relating to the development of the Group's proprietary AI tools.

7.     Right of use assets

The right of use asset is in respect of the Group's office lease.

8.     Trade and other receivables

	Unaudited 30 June 2026 $000	Unaudited 30 June 2025 $000	31 December 2025 $000
Current
Trade receivables	955	4,875	2,897
Less: provision for impairment of trade receivables	(626)	(4,040)	(2,644)
Trade receivables - net	329	835	253
Prepayments and accrued income	723	196	338
Other receivables	277	162	343
Total current trade and other receivables	1,329	1,193	934

Taking account of the profile and age of the 30 June 2026 receivables, the Group has applied the following average provisions to each age group, which are based on the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision, grouping receivables based on similar credit risk:

$000	0-3 months	4-6 months	7-9        months	> 9 months	Total
Gross receivables	415	181	199	160	955
Provision %	25%	91%	99%	100%
Provision	104	165	197	160	626
Net receivables	311	16	2	-	329

In the 6 months to 30 June 2026 the charge to the P&L account for bad debts was $0.3 million (6 months to 30 June 2025 $1.6 million).  The significant reduction follows the embedding of a comprehensive programme of process and governance enhancements from April 2025.

At 31 December 2025, the Group provided 100% on balances > 9 months old, 99% on balances 7-9 months old, 85% on balances 4-6 months old and 27% on balances 0-3 months old.

9.     Trade and other payables

	Unaudited 30 June  2026	Unaudited 30 June  2025	31 December 2025
	$000	$000	$000
Current
Trade payables	337	201	773
Other payables	488	802	296
Accruals & deferred income	1,013	9	397
Corporation tax payable	148	129	119
Total current trade and other payables	1,986	1,141	1,585

10.    Lease liabilities

Lease liabilities at 30 June 2026, 30 June 2025 and 31 December 2025 relate entirely to the Group's main office.

 

END