Big Technologies’ 2025 results: steady ARR growth, US momentum, and a legal clean‑up
Big Technologies has posted audited results for the year to 31 December 2025. The headline is clear: recurring revenue is growing, the US is finally moving, and the major Buddi Litigation has been settled post year end. Under the bonnet, margins eased and statutory earnings were hit by exceptional costs – but the cash pile remains chunky even after the settlement.
ARR up 12% and NRR 105% – why this matters
Annual Recurring Revenue (ARR – the normalised annual value of recurring contracts) climbed 12% on a constant currency basis to £52.4 million (2024: £46.8 million). Net Revenue Retention (NRR – growth from existing customers after churn) was 105% (2024: 96%), which tells you the existing base bought more than it cancelled. That is exactly what you want to see in a subscription-like model.
Geographically, ARR grew across the board: APAC +10%, EMEA +11%, and the Americas +25%, with the US up a striking 40% after operational changes and investment.
Revenue and margin trends: mix shift doing the heavy lifting
Revenue on a constant currency basis rose 3% to £49.7 million (2024: £48.1 million). On a statutory comparison, revenue dipped 1% versus £50.3 million in 2024 because of FX headwinds, particularly from weaker Australian and New Zealand dollars.
Gross margin eased to 66% (2024: 68%). Management points to mix: the loss of the high-margin Colombia contract in 2024 and the start of the full-service Northern Ireland contract in 2025 lowered the blended margin. Expect a “controlled reduction” in coming years as the competitive US market forms a larger share of the pie.
US expansion: 16 new wins across 10 states and growing capability
The operational reboot in the US looks to be landing. In the last six months of 2025, the Group won 16 new contracts across 10 states, helping US ARR grow 40% year-on-year. Revenue in the USA rose 26% on a constant currency basis, with the average number of individuals monitored rising to 115 (2024: 90).
Big has also opened a US monitoring centre to support growth and intends further targeted investment to increase regional autonomy. This is important: the US is the largest market but fragmented, so local presence and service capability matter for winning and scaling contracts.
Product momentum: AlcoTag adoption and the AlcoBreath launch
The alcohol-monitoring suite is gaining traction. The number of AlcoTags with clients increased by 274% to 1,664 (2024: 445). In December, Big launched AlcoBreath – a remote breath analysis product – and continued upgrading the Eagle monitoring platform, applying AI to sharpen analytics and reporting. A next-generation AlcoTag is expected in 2026.
Litigation settlement: clearing the decks, reducing drag
The big swing factor in the P&L was exceptional costs. The Group booked a £38.5 million provision in 2025 for the Buddi Litigation, which was settled in January 2026 for cash payments of £31.5 million immediately and £7.0 million over 18 months. Legal costs related to litigation were £8.1 million (2024: £9.0 million). There was also a £4.0 million exceptional FX loss on repatriating US dollars that had been held for a potential acquisition.
All in, statutory operating result moved to a £23.0 million loss (2024: £2.2 million profit). Adjusted EBITDA, which strips out exceptional items and share-based charges, was £24.6 million (2024: £27.0 million). Management expects materially lower legal spend in 2026 now the Buddi Litigation is resolved. Separate proceedings involving the Founder remain live, with the Group proposing negotiation or mediation; a £0.5 million provision for related fees is in place.
Cash, balance sheet and capital allocation
Cash and cash equivalents were £93.4 million at year end (2024: £95.7 million). After the initial £31.5 million settlement paid post year end, that would equate to £61.9 million. Net assets stood at £91.3 million (2024: £128.7 million), reflecting the provision. The Group continues to generate good underlying cash: cash from operations adjusted for exceptional items was £23.7 million (2024: £23.9 million).
Notably, Big has implemented FX hedging since the year end covering AUD, NZD and USD on a rolling 12-month basis, which should reduce volatility after 2025’s FX hit. With no debt and cash well above operating needs, management will assess uses of cash once remaining litigation concludes, guided by a “clear capital allocation policy”.
Key numbers at a glance
| Metric | 2025 | 2024 |
|---|---|---|
| ARR (constant currency) | £52.4m | £46.8m |
| NRR | 105% | 96% |
| Revenue (constant currency) | £49.7m | £48.1m |
| Statutory revenue | £49.7m | £50.3m |
| Gross margin | 66% | 68% |
| Adjusted EBITDA | £24.6m | £27.0m |
| Adjusted operating profit | £18.5m | £21.2m |
| Statutory operating (loss)/profit | £(23.0)m | £2.2m |
| Basic (loss)/earnings per share | (8.0p) | 0.8p |
| Adjusted basic EPS | 6.2p | 6.8p |
| Year-end cash | £93.4m | £95.7m |
| Cash after initial settlement payment | £61.9m | n/a |
Contract pipeline: new Chile award and steady international progress
Post period end, Buddi and partner Sonda SA were awarded a 7‑year contract with the Gendarmerie in Chile, with total revenues expected to be approximately $26 million. The incumbent is appealing, but the client has asked Buddi and Sonda to start delivery over the next five months. Elsewhere, 2025 saw the Northern Ireland contract mobilised and agreements secured in the US, Canada, New Zealand, Lithuania, Latvia and Switzerland.
Operational build-out and manufacturing
Operational capability has been strengthened, notably with a new monitoring centre in the US and a dedicated Northern Ireland setup completed in two months. Manufacturing output at the UK facility increased from 24,000 units in 2024 to 37,000 in 2025, with plans to begin manufacturing in America from 2027 to reduce costs and improve service speed.
What I like, and what to watch
Positives
- ARR up 12% and NRR at 105% show a healthier, expanding base.
- US traction is finally visible: 16 wins across 10 states and 26% revenue growth (c/c).
- Litigation settlement removes a major overhang and should cut legal cash burn in 2026.
- Alcohol-monitoring suite gaining real adoption – AlcoTag units up 274% to 1,664.
- Strong cash position even after the initial settlement payment; no debt.
Watch‑outs
- Statutory loss driven by £41.5 million of non-underlying items before tax – recovery depends on these truly being one‑offs.
- Gross margin pressure is structural if the US becomes a larger slice – growth may come at lower margin.
- Customer concentration remains high: three customers make up 56% of revenue.
- Founder-related proceedings are still open, with only £0.5 million provided for fees.
- FX was painful in 2025; hedging now in place should help but execution will matter.
Outlook: guided to be in line with expectations, with 2027+ tailwinds
Management says 2026 performance is expected to be in line with market expectations, with recently won contracts laying groundwork for further growth in 2027 and beyond. With the organisational reset in the US, a clearer legal backdrop, and a product suite hitting demand (notably in alcohol monitoring), the building blocks are in place.
Bottom line: this is a reshaping year. You are paying for cleaner governance, a tidier legal position, and a push into the world’s biggest EM market. If Big converts its pipeline while keeping a grip on costs and margin mix, 2026 should look calmer – and 2027 could show the full benefit.
Quick jargon buster
- ARR: Annual Recurring Revenue – the annualised value of ongoing contracts at a point in time.
- NRR: Net Revenue Retention – growth from existing customers over a year, including expansions minus cancellations.
- Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, excluding exceptional/non-underlying items and share-based charges – used to show underlying performance.
- Constant currency: prior period figures restated at current year exchange rates to remove FX noise.
