Pulsar Group Plc (LSE:PULS) has forecast revenue of approximately £65 million for the financial year ending 30 November 2026, compared with £61.2 million in the previous year, while announcing that it is assessing investor demand for a potential fundraising of up to £5 million.
The AIM-listed audience intelligence and Software-as-a-Service (SaaS) provider reported annual recurring revenue (ARR) of £67.7 million at 30 September 2026, representing an increase of £1.7 million, or 2.6%, on a constant currency basis since the beginning of the financial year.
However, investment in infrastructure to support enterprise customers, higher third-party data costs and changes in customer billing arrangements have affected margins and cash generation.
The company has also introduced a Capital Access Window, temporarily pausing trading in its ordinary shares while it assesses the proposed fundraising.
Annual Recurring Revenue Reaches £67.7 Million
Pulsar reported ARR of £67.7 million at 30 September 2026, an increase of £1.7 million on a constant currency basis since 30 November 2025.
The increase represents growth of 2.6% during the financial year to date.
ARR rose by £1.2 million during the first half of FY2026, followed by a further £0.5 million in the four months to 30 September.
The company attributed the growth to new customer contracts and additional sales to existing large enterprise customers.
Pulsar said these contracts contributed to second-half trading activity, although the investment required to support larger customers has affected short-term profitability and cash generation.
FY2026 Revenue Expected to Rise While Adjusted EBITDA Declines
The board expects Pulsar to report approximately £65 million in revenue for FY2026, compared with £61.2 million in FY2025.
This represents an anticipated increase of approximately 6.2%.
Adjusted EBITDA is expected to be approximately £10 million, compared with £10.4 million in the previous financial year.
The projected decline in adjusted EBITDA comes despite the expected increase in revenue.
Pulsar attributed the difference partly to expenditure on infrastructure and operational capacity required to serve larger enterprise customers.
Higher costs associated with third-party data have also affected gross margins.
The company said the necessary infrastructure investment is now in place and that its continuing cost reduction programme is intended to offset some of the additional expenditure.
Gross Margins Affected by Infrastructure and Data Costs
Pulsar expects its gross margin to be lower year on year, reflecting changes in the cost structure of its business.
The company has invested in infrastructure and capacity to support contracts with large enterprise customers.
At the same time, third-party data costs have increased.
These expenses have affected profitability during FY2026, despite growth in annual recurring revenue and anticipated full-year sales.
Management expects its cost reduction programme to help offset the additional costs.
However, the trading update did not provide a specific gross margin forecast or quantify the expected savings from the programme.
Workforce Reduced by 7% During FY2026
Pulsar has continued implementing measures intended to reduce its operating cost base.
The company reported that full-time equivalent headcount declined from 755 at 30 November 2025 to 702 at 30 September 2026.
This represents a reduction of 53 positions, or approximately 7%, during the financial year to date.
The workforce reduction forms part of the group’s wider cost reduction programme.
Pulsar said it has incurred additional one-off restructuring costs associated with these measures, contributing to lower-than-anticipated cash generation.
The company did not disclose the total restructuring expenditure or provide a revised target for future workforce reductions.
Net Debt Increases to £6.4 Million
Pulsar reported net debt of £6.4 million at 30 September 2026, compared with £6.0 million at 31 May 2026 and £5.6 million at 30 November 2025.
Net debt therefore increased by £0.4 million during the four months to September and by £0.8 million since the beginning of the financial year.
The company said operating cash performance had improved significantly compared with the previous year, while investing cash outflows had declined.
Nevertheless, overall cash generation was below management’s expectations.
Pulsar identified additional restructuring expenditure, changes in billing arrangements and slower customer collections as contributing factors.
Enterprise Customer Billing Changes Affect Cash Generation
Pulsar said changes in its customer mix have affected the timing of cash receipts.
As the business has secured additional large enterprise customers, a smaller proportion of contracts has been paid annually in advance.
This shift has reduced the level of upfront cash received from customers compared with previous billing arrangements.
The company also reported slower collections, resulting in an increase in debtor days.
Management expects the collection position to recover, although no specific timetable was provided.
These factors, together with restructuring costs, have contributed to the increase in net debt despite improved operating cash performance.
Pulsar Considers Fundraising of Up to £5 Million
Alongside its trading update, Pulsar announced that it is assessing investor demand for a potential fundraising of up to £5 million.
The company has not yet confirmed whether the fundraising will proceed.
Its final size, structure, issue price and other terms remain undetermined.
Any fundraising would require shareholder approval at a general meeting.
Pulsar said it would provide further details in subsequent announcements, including the full terms and conditions if the transaction proceeds.
The company did not specify the intended allocation of the potential proceeds.
Trading Paused Under AIM Capital Access Window
Pulsar has elected to use a Capital Access Window in connection with the proposed fundraising, following recent changes to the AIM Rules for Companies.
The arrangement provides for a voluntary pause in trading of the company’s ordinary shares while it engages with potential investors.
Pulsar said the measure is intended to facilitate access to a broader range of investors during the fundraising process.
The Capital Access Window commenced at 7:30 a.m. on 28 October 2026.
Trading will remain paused until the company makes a further announcement detailing the outcome of the proposed fundraising.
Pulsar expects to announce the result as soon as practicable.
The introduction of the Capital Access Window does not mean that the fundraising has been completed or that its terms have been agreed.
Outlook for the Remainder of FY2026
Pulsar enters the final part of FY2026 with annual recurring revenue of £67.7 million and a full-year revenue forecast of approximately £65 million.
The company expects adjusted EBITDA of around £10 million, reflecting higher infrastructure and data costs alongside its investment in enterprise customer capacity.
Management continues to implement operating cost reductions, with headcount already reduced by 7% during the financial year.
The board remains confident in the group’s prospects, citing growth in enterprise customer contracts and the infrastructure now available to support additional business.
Near-term financial developments will include the outcome of the proposed fundraising, changes in working capital and customer collections, and the effect of the cost reduction programme on profitability.
The company has not provided further financial guidance beyond its FY2026 revenue and adjusted EBITDA estimates.
More About Pulsar Group
Pulsar Group Plc is an AIM-listed audience intelligence business providing Software-as-a-Service solutions to the global marketing and communications industries.
Its technology supports organisations in analysing audiences and using data to inform marketing and communications activities.
The group serves enterprise customers and generates recurring revenue through its software platforms.
For FY2026, Pulsar expects revenue of approximately £65 million and adjusted EBITDA of approximately £10 million, while assessing a potential fundraising of up to £5 million.
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