Shearwater revenue jumps 31% as services growth and major contract wins drive performance

Shearwater Group (LSE:SWG) reported interim revenue of £14.0m for the six months to 31 December 2025, representing a 31% increase year on year. The growth was largely driven by its Services division, where revenue rose 37% and accounted for 92% of total group sales. Adjusted EBITDA remained at breakeven, while administrative costs declined 6% following restructuring and cost-cutting measures implemented in the previous year. Cash stood at £2.2m at period-end, temporarily lower due to the timing of project-related payments.

Operational momentum remained strong, with the group securing several significant contract awards and extensions with major telecom operators, financial institutions and UK government departments. These included a £7.3m extension with a mobile operator and, after the reporting period, a £9m contract renewal with a global bank. With a new chair recently appointed, a robust sales pipeline and new solutions expected to support margin improvement during the typically stronger second half, the board reiterated its confidence in meeting full-year market expectations against the backdrop of growing demand in the global cybersecurity sector.

Despite strong revenue growth, the company’s outlook remains constrained by weaker financial quality, including ongoing losses and pressure on free cash flow. Short-term technical indicators provide some support, with the share price trading above key 20-day and 50-day moving averages and showing positive MACD momentum. However, valuation remains limited by the company’s loss-making profile, reflected in a negative P/E ratio and the absence of dividend yield data.

More about Shearwater

Shearwater Group plc is a UK-based cybersecurity provider offering a broad range of cyber defence, managed security and advisory services to organisations worldwide. Its capabilities span identity and access management, data protection, cybersecurity technologies, managed security operations and governance, risk and compliance services. The company primarily serves large enterprises and highly regulated sectors, including financial services, telecommunications and government.