Beeks Financial Cloud Reports 26% Revenue Growth and Record Contracts in FY25 Final Results

Beeks FY25 results: 26% revenue growth, record Exchange Cloud contracts, and a confident FY26 outlook

Beeks Financial Cloud has delivered another strong year. Revenue rose 26% to £35.9m, profitability improved on both an underlying and statutory basis, and the Group signed a record haul of big-ticket Exchange Cloud and Proximity Cloud deals with Tier 1 names. The pipeline is described as “at record strength”, with early FY26 trading lifting recurring revenue and giving the Board confidence in meeting expectations.

In plain English: the growth engines Beeks has been investing in are now doing the heavy lifting, and the sales funnel looks busy.

Key numbers at a glance

Revenue	£35.9m (up 26%)
ACMRR (recurring run rate)	£29.5m at June, £31.5m by September
Gross profit	£14.7m (up 30%), margin 40.9%
Underlying EBITDA	£13.6m (up 27%), margin 37.9%
Underlying profit before tax	£5.49m (up 41%)
Statutory profit before tax	£2.79m
Underlying EPS	8.47p basic, 7.60p diluted
Basic EPS (statutory)	4.43p
Net cash	£7.0m
Proximity + Exchange Cloud revenue	£10.3m (2024: £3.5m)

What drove the step-up: Exchange Cloud and Proximity Cloud land-and-expand

The standout driver is the surge in Proximity Cloud and Exchange Cloud revenue to £10.3m, from £3.5m last year. These are Beeks’ flagship, low-latency, on-premise cloud stacks for exchanges and trading venues, and they are gaining traction with Tier 1 customers.

Beeks signed a record Total Contract Value of over £19m across these products. New Exchange Cloud deals include the Australian Securities Exchange, Grupo Bolsa Mexicana de Valores, and Kraken, with TMX Datalinx signing post period. The Johannesburg Stock Exchange extended again, now across two data centres. Management also flagged that one large exchange contract from FY24 has been put on notice, but the financial impact is described as immaterial.

There is a strategic shift worth noting: Beeks has introduced a revenue share model on certain Exchange Cloud contracts. This has shortened sales cycles and should, over time, improve margin quality as client usage ramps. Three exchanges are now under this model, with one already recognising revenue and operating profitably. For investors, this typically means a slower initial build, then higher ARR as customer adoption climbs.

Recurring revenue, product innovation and the Private Cloud wobble

Annualised Committed Monthly Recurring Revenue (ACMRR) rose 5% to £29.5m at June, and then to £31.5m by September. Recurring revenue represented 71% of total revenue, lower than last year’s 84% because the mix included more upfront elements from Proximity and Exchange Cloud. The recurring base remains robust, and the uptick in early FY26 is encouraging.

Private Cloud saw higher churn during Beeks’ transition from VMWare to OpenNebula, which moderated ACMRR growth. That looks to be behind them: in August 2025, Beeks secured over $7m of new Private Cloud contracts set to land in FY26. This sits alongside a healthy Proximity pipeline, including a record June for contracts.

On innovation, Beeks launched Market Edge Intelligence after year end. It is billed as a first-of-its-kind AI and machine learning solution for passive monitoring of capital markets data at the network edge, with use cases in predictive alerts, anomaly detection and capacity forecasting. Early feedback is positive, and it adds a new recurring revenue stream. Security remains a focus, with SOC 2 compliance in place and SOC 2 Type 2 accreditation achieved.

Margins, cash and the balance sheet: investment now, payback ahead

Gross margin ticked up to 40.9% and underlying EBITDA margin held at 37.9%. Underlying profit before tax rose 41% to £5.49m, showing operating leverage as scale builds. Statutory PBT was £2.79m, reflecting non-cash items such as share based payments and amortisation. Basic EPS rose to 4.43p, while underlying diluted EPS increased to 7.60p.

Operating cash inflow was £9.4m, with investing outflows of £7.0m as Beeks added data centre capacity and continued development spend. Net cash finished at £7.0m, gross cash at £7.4m. There is no bank debt and just £0.4m of asset finance. The revolving credit facility was closed during the year.

One item to understand is contract assets, which rose to £11.6m. This reflects revenue recognised upfront on certain Proximity and Exchange Cloud components, with cash collected over time. It is common in these multi-element contracts, but investors should track how quickly these unwind to cash. There was a specific £0.5m contract asset derecognition, leading to a small net impairment charge of £0.1m.

Lease liabilities increased to £5.9m as Beeks locked in discounted data centre leases. That supports capacity for the pipeline and helps hedge inflation in colocation costs. It does, however, add fixed commitments that require continued utilisation and contract conversion.

Why this update matters for investors

• Tier 1 validation and pipeline depth: Wins with ASX, BMV, Kraken and TMX, alongside a JSE extension, signal product-market fit in exchanges and trading venues. The pipeline is said to be at record strength, including late-stage discussions with additional Top 30 exchanges.
• Improving quality of earnings: The revenue share model should increase the proportion of high-margin recurring revenue over time as client usage scales, even if it smooths out upfront recognition.
• Operational leverage showing through: Underlying PBT up 41% outpacing revenue growth suggests the model scales, with room for further margin progress as deployments mature.
• New AI-led growth vector: Market Edge Intelligence adds an analytics ARR stream and upsell potential across the installed base, broadening Beeks beyond infrastructure.

Balanced view: positives, risks and what to watch in FY26

Positives

• 26% revenue growth with gross margin improvement to 40.9%.
• Record Proximity and Exchange Cloud contract wins driving £10.3m segment revenue.
• ACMRR momentum into the new year, reaching £31.5m by September.
• Strong cash discipline, £7.0m net cash, and no bank debt.
• Security and compliance credentials strengthened with SOC 2 Type 2.

Risks and watch points

• Contract execution and ramp: Revenue share deals and new exchanges need to scale usage to deliver the full ARR potential.
• Cash conversion optics: Elevated contract assets are normal for this model, but investors will watch the pace of conversion to billings and cash.
• Recurring mix: Recurring revenue fell to 71% on mix. Expect volatility here depending on the split between upfront and recurring elements, with a medium-term tilt back to ARR as revenue share matures.
• Customer concentration: One customer represented £10.9m of revenue. Diversification from the growing exchange roster should help over time.
• Fixed commitments: Lease liabilities rose to £5.9m to support growth. Keeping utilisation high and conversion brisk is key.

Outlook: guidance intact, early wins banked

Post period, Beeks signed several significant Private Cloud contracts and reports late-stage contracting with an additional four of the Top 30 exchanges. The Board is confident FY26 will be in line with expectations. Given the early uplift in ACMRR to £31.5m, the step change in Tier 1 logos, and the revenue share model gaining traction, that confidence looks grounded.

Bottom line: Beeks is moving from market education to market adoption. If the company converts its record pipeline and ramps usage on revenue share deployments, FY26 could be another year of double digit growth with improving earnings quality.