Beeks FY26 trading update: record second half supports growth as cash investment rises

The key points

Beeks Financial Cloud Group has closed its 2026 financial year with a record second half and performance in line with market expectations.

The financial markets cloud computing provider expects FY26 revenue to rise by 11% to approximately £40.0 million. Underlying EBITDA, which is earnings before interest, tax, depreciation and amortisation, is expected to increase by 18% to approximately £16.0 million.

Underlying profit before tax is forecast to reach approximately £6.2 million, up 13% from £5.5 million in FY25.

The faster growth in underlying EBITDA compared with revenue is encouraging. It suggests that Beeks generated better operational returns as the business expanded, although investors will need to wait for the audited results in October 2026 for the full cost and margin detail.

FY26 expected performance	FY26	FY25	Growth
Revenue	Approximately £40.0 million	£35.9 million	11%
Underlying EBITDA	Approximately £16.0 million	£13.6 million	18%
Underlying profit before tax	Approximately £6.2 million	£5.5 million	13%
ACMRR at year end, constant currency	£34.0 million	£29.5 million	Approximately 15%
Gross cash	£5.37 million	£7.36 million	Not disclosed
Net cash	Approximately £0.63 million	£6.96 million	Not disclosed

Currency movements held back reported growth

Beeks also provided figures on a constant currency basis, removing the effect of exchange-rate movements.

On that basis, revenue growth was 12%, taking revenue to £40.7 million. Underlying profit before tax increased by 18% to £6.5 million.

That comparison shows that currency movements reduced the reported figures. The underlying direction remains positive, but foreign exchange is an external factor that can create differences between operational growth and the numbers ultimately reported in sterling.

Recurring revenue provides support for FY27

Beeks exited FY26 with ACMRR of £34.0 million on a constant currency basis, up approximately 15% from £29.5 million a year earlier. ACMRR is the company's measure of committed recurring revenue on an annualised basis.

The increase reflects growth in Private Cloud and the contribution from Exchange Cloud revenue-sharing contracts. This is important because recurring and contracted revenue can give a technology infrastructure provider greater visibility over future trading.

Management said the ACMRR performance provides a strong underpinning for FY27. That does not amount to formal financial guidance, but it suggests Beeks is entering the new year with a larger recurring revenue base.

The group also reported encouraging momentum across all four product lines and described its pipeline of commercial opportunities as healthy. The value, timing and probability of converting that pipeline were not disclosed.

Exchange Cloud is starting to demonstrate its potential

Exchange Cloud allows trading venues to offer Beeks infrastructure to their customers, with revenue shared between the parties.

Two further deployments were announced during FY26: TMX in Canada and nuam in South America. Kraken, Beeks' first crypto exchange customer, also moved to its second deployment phase after selling out phase one.

Kraken and ASX have now transitioned to monthly profitability under the revenue-share model. This is a meaningful development because Beeks has had to invest upfront in the infrastructure required for these deployments.

Reaching monthly profitability does not reveal the total return on that investment, and contract-level revenue or profit figures were not disclosed. Even so, it provides evidence that deployed capacity can move from an initial investment phase into profitable recurring operation.

Early demand for Market Edge Intelligence

Beeks secured three customers for its newly launched Market Edge Intelligence product within months of launch.

The wins were with one of the world's largest banks, a leading North American exchange operator and a leading global financial services provider. Customer names and contract values were not disclosed.

Market Edge Intelligence is described as an artificial intelligence analytics offering. Early adoption by large financial market participants is encouraging, particularly because it broadens Beeks beyond its established cloud and connectivity services.

It is still early, however. Three wins demonstrate interest rather than the eventual scale or profitability of the platform. Investors will want to see whether Beeks can convert its pipeline into repeatable revenue growth across a wider customer base.

Why has the cash position fallen?

The main point of caution is the balance sheet movement.

Gross cash declined from £7.36 million to £5.37 million, while net cash fell more sharply from £6.96 million to approximately £0.63 million.

Beeks attributed this to significant upfront infrastructure investment, particularly towards the end of FY26. Spending supported new Exchange Cloud revenue-share deployments as well as additional capacity across Proximity Cloud and Private Cloud.

This is not necessarily a negative if the infrastructure generates attractive recurring revenue and cash flow over time. Several Exchange Cloud deployments are already cash-flow positive, according to the company.

Nevertheless, the reduced net cash cushion matters. Revenue-share contracts require Beeks to commit capital before their full financial benefits emerge, creating execution and timing risk. The announcement did not disclose FY26 free cash flow, capital expenditure, total debt or expected FY27 investment requirements.

What investors should watch next

The trading update presents a business growing across revenue, underlying EBITDA, profit and recurring revenue. The record second half, early Market Edge Intelligence wins and progress towards profitability at Kraken and ASX are all positive indicators.

The trade-off is that growth is capital intensive. Beeks has invested ahead of revenue, leaving it with substantially less net cash than a year earlier. Future returns will depend on deployments attracting customers, generating recurring revenue and converting accounting profit into cash.

The audited FY26 results are expected in October 2026. Key areas to examine will include cash generation, infrastructure spending, the profitability of revenue-share deployments and any more detailed outlook for FY27.

For now, Beeks has delivered the expected FY26 performance and enters the new year with momentum. The next test is proving that its expanding recurring revenue base can produce sustainable cash returns alongside continued growth.