Big Technologies lifts first-half EBITDA 14% as cash generation strengthens

A solid first half with profitability outpacing revenue

Big Technologies has reported a positive first-half trading update, with revenue returning to growth and adjusted profitability increasing at a faster rate.

For the six months ended 30 June 2026, revenue rose 6% on a constant currency basis to £26.9 million. Adjusted EBITDA increased 14% to £14.2 million, while the adjusted EBITDA margin improved from 50% to 53%.

Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, excluding items such as share-based payments and certain legal costs. It is intended to show the underlying operating performance of the business, although investors should remember that it is not the same as statutory profit.

The update is based on unaudited management accounts, so all the figures remain provisional ahead of the interim results scheduled for 14 September 2026.

Big Technologies H1 2026 key figures

Metric	H1 2026	H1 2025	Change
Annual recurring revenue	£53.2 million	£50.9 million	5%
Revenue	£26.9 million	£25.4 million	6%
Gross profit margin	67%	68%	Down 1 percentage point
Adjusted EBITDA	£14.2 million	£12.5 million	14%
Adjusted EBITDA margin	53%	50%	Up 3 percentage points
Adjusted free cash flow	£9.6 million	£6.7 million	42%
Cash at bank	£67.1 million	£96.7 million	Down 31%

Revenue and annual recurring revenue growth rates are presented on a constant currency basis. This strips out the effect of changing foreign exchange rates to give investors a clearer view of underlying trading.

New contracts are feeding into revenue

Annual recurring revenue, or ARR, reached £53.2 million, up from £50.9 million. ARR represents the annualised value of continuing revenue from recurring customer accounts at a specific point in time.

Big Technologies said growth was supported by new business secured during 2025 and the first half of 2026 moving into implementation and delivery. That matters because contract wins only become financially meaningful once services are deployed and revenue starts to be recognised.

The 6% increase in revenue also represents an acceleration following the group's return to growth in the second half of 2025.

Management pointed to several potential sources of further growth, including a contract win in Chile, a three-year renewal in Guatemala and six new wins in the US. New products AlcoTag and AlcoBreath were also highlighted as supporting the outlook.

The announcement does not disclose the individual values, expected margins or implementation schedules for these contracts. Investors will therefore need more detail before judging how much each win could contribute.

Operational leverage is the standout feature

The most encouraging part of the update is the gap between revenue growth and adjusted EBITDA growth.

Revenue increased 6%, while adjusted EBITDA rose 14%. This lifted the adjusted EBITDA margin by 3 percentage points to 53%, indicating that a greater proportion of additional revenue flowed through to underlying earnings.

Big Technologies attributed this to operational leverage and a disciplined, cost-neutral approach to investment during 2025. Operational leverage means that revenue can grow faster than the underlying cost base, allowing profit margins to expand.

Acting chief executive Charles Lewinton said the group had strengthened its leadership team and operational structure over the past year without increasing overall costs. According to management, this supported improved operational performance and profitability.

There is one point of tension within the margin picture. The gross profit margin declined from 68% to 67%, reflecting a change in the mix of work across the group, including the full-service Northern Ireland contract.

For now, stronger cost control below the gross profit line more than offset that pressure. However, investors should watch whether the gross margin stabilises as newer contracts scale up.

Cash flow improved despite continuing legal costs

Adjusted free cash flow rose 42% to £9.6 million, compared with £6.7 million in the prior-year period.

Big Technologies defines adjusted free cash flow as operating cash flow minus capital expenditure, excluding exceptional cash movements. The figure therefore aims to show the cash generated by normal operations, but it does not include every cash cost faced by the business.

Exceptional legal fee outflows fell from £5.3 million in H1 2025 to £2.6 million in H1 2026. That remains a meaningful expense, but the reduction helped improve the overall cash-flow picture.

The £9.6 million of adjusted free cash flow represents around 68% of adjusted EBITDA. That suggests the group converted a substantial proportion of its underlying earnings into cash during the period.

Why the cash balance fell 31%

Cash at bank declined from £96.7 million to £67.1 million, despite the stronger underlying cash generation.

The main reason was £33.4 million of initial settlement payments relating to the Buddi litigation during H1 2026. This is an important distinction: the lower cash balance did not result from weaker trading, although the settlement has clearly absorbed a significant amount of capital.

Management described the balance sheet as strong following these payments. A £67.1 million cash position still gives the company a substantial financial cushion based on the figures disclosed, but the announcement does not provide details of any remaining settlement payments or other future litigation-related cash requirements.

That missing information is one of the main areas investors may want clarified when the full interim results arrive.

What looks positive and what needs watching

The positives

• Revenue and ARR both grew on a constant currency basis.
• Adjusted EBITDA increased more than twice as quickly as revenue.
• The adjusted EBITDA margin expanded to 53%.
• Adjusted free cash flow rose 42% to £9.6 million.
• Legal fee cash outflows reduced compared with H1 2025.
• Contract wins and renewals provide potential support for future growth.

The watch points

• The gross profit margin declined by 1 percentage point.
• Cash fell 31% following £33.4 million of litigation settlement payments.
• The value and expected timing of revenue from recent contract wins were not disclosed.
• The update does not disclose statutory profit, earnings per share or detailed working-capital movements.
• All figures are unaudited and remain subject to review.

The key question for the September results

Big Technologies has delivered a constructive first half: growth has resumed, operating margins have strengthened and adjusted cash generation has improved.

The immediate investor focus is likely to be whether management can maintain its 53% adjusted EBITDA margin while implementing newer contracts with different service and margin profiles. Further clarity on litigation-related cash commitments would also help investors assess how much of the £67.1 million cash balance is available to support the business.

The interim results on 14 September 2026 should provide a fuller view of statutory profitability, contract delivery and the group's financial position after the Buddi litigation settlement payments.