Eagle Eye (LSE:EYE) delivered better-than-expected results for the 2026 financial year, supported by strong growth in recurring revenue, expanding adoption of its AI-powered platform and continued operational efficiency.
Annual recurring revenue increased 31% to £44.5 million, while underlying revenue excluding National Retail Solutions (NRS) rose 21%. Recurring revenue accounted for 87% of total group revenue, highlighting the strength and scalability of the company’s software-as-a-service (SaaS) business model.
Adjusted EBITDA reached £9.8 million, representing a margin of 21% and exceeding market expectations as cost discipline and efficiency initiatives continued to support profitability. Eagle Eye also strengthened its balance sheet, with net cash increasing 31% to £16.1 million, providing additional capacity to invest in sales, product innovation and artificial intelligence capabilities.
The company secured a number of significant commercial agreements during the year, including new multi-year contracts with easyJet, Subway, a leading UK health and beauty retailer and several European original equipment manufacturer (OEM) customers. Existing partnerships were also extended through renewals with Woolworths and Auchan, while relationships with Carrefour, Asda and Morrisons continued to expand, helping net revenue retention remain at 111%.
Revenue generated by the EagleAI platform grew 34% during the year. Management believes the combination of growing recurring revenue, an expanding partner ecosystem and continued customer wins positions the business to return to double-digit revenue and EBITDA growth in FY27 while progressing towards its medium-term targets of more than £100 million in annual revenue and an EBITDA margin exceeding 30%.
Although Eagle Eye continues to benefit from strong financial performance, improving margins and positive technical momentum, its valuation remains elevated with a high price-to-earnings ratio. Technical indicators also suggest the shares are in overbought territory, which could increase the potential for short-term volatility despite the company’s positive long-term outlook.
More about Eagle Eye Solutions
Eagle Eye Solutions Group PLC develops AI-powered loyalty and promotional technology that enables consumer-facing businesses to deliver personalised offers and customer engagement across digital channels. Its cloud-based platform serves major retailers, quick-service restaurants, airlines and health and beauty brands through a recurring SaaS revenue model.
The company’s EagleAI and AIR platforms help businesses manage loyalty programmes, digital promotions and customer data at scale. Through partnerships with global systems integrators, OEMs and technology providers, including Deloitte Digital Central Europe, Commerce Architects and Equal Experts, Eagle Eye continues to expand its international reach and strengthen its position in the growing digital loyalty market.
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