Eagle Eye Solutions FY26 Results

Financial Performance

• Accelerated ARR Growth: Annual Recurring Revenue (ARR) grew 31% to £44.5m (FY25: £34.0m).
• Strong Revenue Growth: Underlying Group Revenue (excluding NRS) increased 21% to £46.1m (SaaS revenue up 26% to £39.3m).
• Material EBITDA Outperformance: Adjusted EBITDA reached £9.8m, significantly beating recently upgraded market consensus and achieving an H2 run-rate margin over 20%.
• Robust Balance Sheet: Closed the year with £16.1m in net cash with zero debt, providing strong flexibility for organic growth investments.
• High Customer Retention: Net Retention Rate (NRR) remained strong at 111%.

Strategic & Commercial Progress

• New Industry Vertical: Signed easyJet, marking Eagle Eye's entry into the airline loyalty sector.
• Global Enterprise Wins: Secured 13 major customer wins, including a global contract with Subway, expansion with Central Group (Thailand), and a proof-of-concept with a leading French grocery retailer.
• EagleAI Adoption: Growing traction for real-time 1:1 personalized promotions over traditional batch offers.
• OEM Partner Channels: Signed the first customer contracts originating directly from global system integrators and OEM routes to market.

Outlook & Guidance

• FY27 Growth: Reassuring pipeline supports a planned return to double-digit revenue and EBITDA growth in FY27.
• Medium-Term Target: On track toward achieving £100m in revenue with >30% Adjusted EBITDA margins.

Operator & Introduction

Operator: Good afternoon and welcome to the Eagle Eye Solutions Group PLC full year 2026 results presentation. Throughout this recorded meeting, investors will be in listen-only mode. Questions are encouraged and can be submitted anytime via the Q&A tab situated in the right-hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself; however, they can review all questions submitted there and publish responses where appropriate to do so. I'd now like to hand you over to the management team of Eagle Eye Solutions. Good afternoon.

Tim Mason (Chief Executive Officer): Thank you very much indeed. Good afternoon everybody and thank you very much for joining us. We're going to run you through our results for full year '26 today, and what I hope we will leave you with is an impression of increasing commercial momentum, strategic progress, and operational clarity.

Joining me today as usual is Lucy Sharman-Munday, our CFO, who will talk through the detailed financials shortly.

Executive Summary & Overview

Tim Mason (CEO): To summarize the year: FY26 has been a year of significant delivery, recovery, and accelerated commercial momentum. At the start of the financial year, we managed the exit of the NRS (Neptune Retail Solutions) contract. In response, we set ourselves clear, challenging targets: to maintain financial discipline, optimize our platform costs, and accelerate our pipeline of new enterprise business.

I am pleased to report that we have not only met those targets, but materially exceeded them.

• ARR Growth: Our Annual Recurring Revenue (ARR) grew by 31% to £44.5 million.
• Underlying Revenue: Group Revenue excluding NRS grew by 21% to £46.1 million.
• EBITDA: Adjusted EBITDA reached £9.8 million, significantly ahead of recently upgraded market consensus, delivering a strong second-half run-rate margin over 20%.
• Cash Generation: We closed the year with £16.1 million in net cash, giving us a very healthy balance sheet to continue investing in sales, marketing, and product development.

This performance demonstrates the resilience of our business model, the strong product-market fit of our AIR platform, and the growing demand for real-time personalization at scale.

Commercial Momentum & Enterprise Wins

Tim Mason (CEO): We secured 13 major enterprise customer wins during the year across multiple geographies and verticals.

Key highlights include:

1. Vertical Expansion: We signed easyJet, marking our entry into the airline loyalty sector. This opens up a major new industry vertical for Eagle Eye alongside our core strength in retail and grocery.
2. Quick Service Restaurants (QSR): We secured a global deal with Subway, expanding our footprint significantly in North America and internationally.
3. European & Asian Expansion: We secured a proof-of-concept with a leading French grocery retailer, expanded with Central Group in Thailand, and signed a major UK health and beauty retailer.
4. EagleAI: Adoption of our AI product, EagleAI, continues to gain traction. Retailers are recognizing that standard batch-processed promotions no longer drive the incremental margin they need—1:1 real-time personalized offers do.
5. Partner Channels & OEMs: Our global OEM partnerships and system integrator relationships—including Deloitte Digital Central Europe and Equal Experts—are beginning to yield direct results. We signed our first customer contracts originating directly from these OEM routes to market during the second half.

Now, let me hand over to Lucy to take you through the financial details.

Financial Deep Dive

Lucy Sharman-Munday (Chief Financial Officer): Thank you, Tim, and good afternoon everyone.

I’ll walk through the key financial results for FY26:

• Revenue Analysis:
  • Total reported Group Revenue was £46.7 million (FY25: £48.2m). The slight 3% drop reflects the planned exit of NRS.
  • Excluding NRS, underlying Group Revenue grew 21% to £46.1 million (FY25: £38.1m).
  • SaaS Revenue (excluding NRS) grew 26% to £39.3 million (FY25: £31.3m), driven by full-year contributions from FY25 wins and new contract rollouts in FY26.
• Recurring Revenue & Retention:
  • Annual Recurring Revenue (ARR) ended the year at £44.5 million, up 31% from £34.0 million in FY25.
  • Net Retention Rate (NRR) remained strong at 111%. This reflects the continued expansion of transaction volumes and module upsells across our existing customer base.
• Profitability & Margins:
  • Adjusted EBITDA for the full year was £9.8 million.
  • Following the NRS exit, we targeted an H2 EBITDA margin run rate of 20%. Through strict cost management and platform optimization—including recurring cloud cost savings via AI-driven engineering—we achieved an H2 run rate above 20%, bringing full-year adjusted EBITDA significantly ahead of expectations.
• Cash Flow & Balance Sheet:
  • Free cash flow generation in the second half was strong, supported by high collection rates.
  • We ended the year with £16.1 million in net cash (FY25: £11.5m), with zero debt.
  • This strong net cash position gives us full financial flexibility to fund our organic growth strategy and recruitment programs in sales and data engineering.

Outlook & Summary

Tim Mason (CEO): Thank you, Lucy.

Looking ahead to FY27 and beyond:

• We enter FY27 with substantial ARR momentum and a strong, high-quality pipeline across North America, Europe, and APAC.
• We are confident in reiterating our guidance for a return to double-digit revenue and EBITDA growth in FY27.
• Furthermore, our medium-term targets remain unchanged: to scale Eagle Eye to £100 million in revenue with Adjusted EBITDA margins exceeding 30%.

Our OEM partner relationships are set to become an increasingly significant contributor to growth from FY27 onward. With a market-leading platform, a proven land-and-expand strategy, and a strong balance sheet, Eagle Eye is positioned exceptionally well.

Thank you very much. We will now take your questions.

Q&A Session (Summary)

• Q: On the OEM partnership, when do you expect significant financial contributions?
  • Tim Mason: We signed our first contract through the OEM route in H2 FY26. We expect OEM partner channels to build momentum during FY27 and become a material contributor to new ARR from FY27 onwards as implementations go live.
• Q: How is the expansion into airlines progressing following the easyJet contract?
  • Tim Mason: The easyJet win proves the versatility of the AIR platform outside traditional grocery/retail. Travel and airlines share similar requirements for real-time, personalized customer engagement, and this serves as a strong reference client for further opportunities in the travel sector.
• Q: Can you elaborate on cloud optimization cost savings?
  • Lucy Sharman-Munday: By re-engineering workflows and utilizing internal AI tools for cloud database management, we lowered the cost-per-transaction on AWS/cloud infrastructure. This permanently improved gross SaaS margins and supported our H2 EBITDA recovery.