FD Technologies Delivers Strong FY25 Performance, Exceeding Guidance
Why we think this is very good
The trading update from FD Technologies plc indicates a strong performance in FY25, with the company exceeding expectations on key metrics. The KX business delivered robust annual recurring revenue (ARR) growth of 13% to £81.8 million, and the company achieved a significant milestone with ARR exceeding $100 million. Cash EBITDA also came in ahead of guidance and consensus expectations, with a loss of £14.6 million compared to a loss of £18.8 million in the prior year. The company's focus on KX, return of £120 million to shareholders, and strong net cash position of £56 million further reinforce the positive sentiment.
Key Points
- KX delivered FY25 bookings growth at the top end of guidance range, with £18.0 million in annual ACV added (+33% YoY)
- KX achieved a significant milestone, with annual recurring revenue exceeding $100 million for the first time
- Cash EBITDA loss of £14.6 million was ahead of guidance and above the top end of consensus expectations
- Company returned £120 million to shareholders and closed the year with £56 million net cash and no debt
- Enters FY26 with a strong and growing pipeline, confident of achieving at least 20% ARR growth
Summary
FD Technologies plc delivered a strong performance in FY25, with the KX business achieving £18.0 million in annual contract value (ACV) added, up 33% year-over-year, and annual recurring revenue (ARR) exceeding $100 million for the first time. The company's cash EBITDA loss of £14.6 million was ahead of guidance and above the top end of consensus expectations. FD Technologies also returned £120 million to shareholders and closed the year with £56 million in net cash and no debt. The company enters FY26 with a strong and growing pipeline of expansion and new opportunities across capital markets, aerospace and defence, and industrial IoT, and expects to achieve at least 20% ARR growth in FY26.