Netcall (LSE:NET) reported a solid performance for the six months to 31 December 2025, with revenue rising 15% to £26.5 million. Growth was supported by 11% organic expansion and an initial contribution from the December acquisition of digital experience platform provider Jadu.
Cloud services were the main driver of growth during the period. Cloud revenue increased 34%, while cloud annual contract value (ACV) climbed 42% to £42.6 million. Overall ACV across the business reached £50.5 million, and recurring revenue accounted for 83% of total income. Adjusted EBITDA rose 13% to £6.5 million, although statutory pre-tax profit declined compared with the previous year.
The company also highlighted growing adoption of artificial intelligence capabilities within its Liberty platform. Bookings linked to AI functionality more than tripled during the period, while continued customer expansion delivered a cloud net retention rate of 115%.
Netcall said the acquisition of Jadu strengthens its digital experience and AI capabilities while extending its presence in UK local government and opening further opportunities in the United States through partner networks. The company ended the period debt-free with £14.8 million in cash and a record contracted order book valued at £92.4 million, alongside a strong pipeline that management believes will support continued growth in the 2026 financial year.
Overall, the company’s outlook is supported by solid operational performance, high recurring revenue and minimal leverage. However, growth in net income and free cash flow has slowed. From a technical perspective, the share price remains in a strong upward trend but appears heavily overbought, which could increase near-term volatility. Valuation metrics also represent a potential headwind due to a high price-to-earnings ratio and relatively low dividend yield.
More about Netcall
Netcall is a UK-based enterprise software company listed on AIM that provides automation and customer engagement technology through its AI-powered Liberty platform. The platform helps organisations digitise processes and improve customer interactions, serving around 700 clients across sectors including healthcare, government and financial services. Its customers include approximately two-thirds of NHS acute trusts, half of UK local authorities and major financial institutions such as Legal & General, Baloise and Santander.
Leave a Reply