Quartix Technologies (LSE:QTX) said revenue and adjusted EBITDA for 2025 are now expected to exceed market forecasts, supported by continued momentum in recurring income and cash flow. Annualised recurring revenue increased by 14% to £37m, alongside a 9% rise in customer numbers and 11% growth in subscriptions. Despite significant investment in 4G network upgrades, restructuring initiatives and higher tax prepayments, the group generated strong free cash flow of £5.1m and ended the year with £5.6m in cash.
The company also announced plans to simplify and consolidate its dividend structure, with a target total ordinary dividend of 10p per share. Operationally, growth has been broad-based across its core regions, with particularly strong performance reported in Italy and Spain. Ongoing investment is focused on next-generation telematics hardware, a unified web and mobile user interface, and the continued roll-out of connected dashcam solutions.
Alongside growth initiatives, Quartix is managing several transitional programmes, including large-scale 4G network upgrades and a review of accounting treatment with the UK Financial Reporting Council. While the review may result in changes to how certain tracking system costs are classified, management does not expect any impact on reported revenue or free cash flow. Overall, the group enters 2026 with a constructive outlook and a platform positioned for continued expansion.
From a market perspective, Quartix Holdings benefits from strong underlying financial performance and recent positive corporate developments, although short-term technical indicators point to a degree of caution. Valuation metrics appear reasonable, offering a relatively balanced investment profile.
More about Quartix Holdings
Quartix Technologies is a UK-based provider of subscription-led vehicle tracking systems, telematics hardware and fleet management software. The group serves commercial fleets across six core markets—the UK and Ireland, France, the US, Italy, Spain and Germany—delivering GPS tracking, data analytics and integrated connected dashcam solutions designed to improve fleet efficiency, driver safety, insurance outcomes and fraud prevention. Its business model is largely underpinned by recurring software subscription revenues.
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