Big Technologies (LSE:BIG) delivered a stronger first half of 2026, with growth in recurring revenue, earnings and cash generation driven by the rollout of contracts secured during 2025 and the opening months of 2026. Annual recurring revenue increased 5% to £53.2 million, while revenue rose 6% on a constant currency basis to £26.9 million. Gross profit margin edged down by one percentage point to 67%, although adjusted EBITDA advanced 14% to £14.2 million, lifting the adjusted EBITDA margin to 53% as the business benefited from operating leverage and a cost-neutral expansion of its leadership and operational capabilities.
The group also reported a significant improvement in cash generation, with adjusted free cash flow climbing 42% to £9.6 million. This reflected robust underlying operating performance alongside a reduction in exceptional legal cash payments. Cash at bank totalled £67.1 million after the company made £33.4 million in settlement payments relating to the Buddi litigation, leaving Big Technologies with what it described as a strong financial position. New contract awards in Chile, Guatemala and across six U.S. agreements, together with the commercial rollout of AlcoTag and AlcoBreath, provide management with confidence that growth will continue through the second half of 2026 and into the future, strengthening the company’s position in the global electronic monitoring market.
Despite the encouraging operational performance, the investment outlook remains tempered by the sharp deterioration in profitability and free cash flow experienced during 2025. Market indicators also continue to reflect subdued momentum, with the shares trading below key moving averages and the MACD remaining negative. In addition, valuation support is limited because the company is currently reporting negative earnings and does not offer a dividend yield.
More about Big Technologies PLC
Big Technologies PLC, traded on AIM under the ticker BIG, is a specialist provider of electronic monitoring technology for the criminal justice sector, operating internationally through its Buddi brand. The company supplies integrated hardware and software solutions via a scalable, subscription-based platform that enables governments and justice agencies to deploy monitoring services across a broad range of jurisdictions and operational requirements.
The business is focused on delivering advanced monitoring technology and data-driven services designed to improve the management of individuals within criminal justice systems. By prioritising long-term recurring revenue contracts and continually expanding its product portfolio, Big Technologies has established itself as a leading supplier of electronic monitoring infrastructure within its specialist market.
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