Intercede (LSE:IGP) said it expects annual recurring revenue to continue rising in the year to 31 March 2026 as the company pushes ahead with its transition from perpetual software licences to subscription-based digital identity solutions. The shift is intended to improve the quality and predictability of revenue streams. The group also highlighted a strong balance sheet position, remaining debt-free with year-end cash ahead of expectations.
Despite the positive progress on subscriptions, Intercede warned that full-year FY26 revenue is likely to be around 8–9% below market forecasts, while adjusted EBITDA could come in 15–18% lower. The shortfall reflects procurement delays—particularly in the United States—and increased caution among customers amid geopolitical uncertainty, including the conflict in the Middle East. Management emphasised that these orders have largely been deferred rather than lost. The company reaffirmed its FY27 revenue target of £21m, pointing to a healthy pipeline, improved order intake in the second half and continued growth in subscription adoption, suggesting that near-term pressures are largely timing-related rather than indicative of weaker underlying demand.
Intercede’s outlook is supported by positive corporate developments and relatively stable financial performance, although technical indicators point to some market weakness. The company’s ability to secure significant contracts and the presence of insider confidence are constructive factors, but current technical trends suggest investors may remain cautious in the near term.
More about Intercede
Intercede Group is a UK-based cybersecurity software company focused on digital identity technologies that help organisations guard against breaches caused by compromised user credentials. Its product portfolio includes secure user registration, identity verification, password security management, one-time passwords, FIDO authentication and PKI solutions. These offerings are supported by professional services and a large database tracking compromised passwords, with customers spanning government, defence, financial services and other high-security industries worldwide.
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