Blackbird’s 2025 audited results: topline takeaways investors should know
Blackbird plc has published its audited results for the year to 31 December 2025. The story is one of tightening costs, a profitable core Blackbird division, and a big strategic bet on elevate.io – the browser-based, multiplayer video editor aimed at professional creators and in-house brand teams.
Revenue fell 14% to £1.38 million, reflecting lost Blackbird deals and the absence of one-off 2024 “summer games” income. Despite that, operating costs were cut and the Blackbird division posted improved profitability. The overall Group loss widened as elevate.io amortisation kicked in from February 2025 following the payment gateway launch.
elevate.io: product-market fit first, monetisation next
Management’s confidence is clearly pinned to elevate.io. The platform added key collaboration features and first-wave AI tools in 2025 (OpenAI speech, image and subtitle integrations; stock video via Pexels; looks, transitions and more). The strategy is a freemium funnel: build usage, learn, then scale paid conversion.
- Registered users: over 138,000 as at 16 March 2026.
- Conversion since late September 2025: 1.1% to paid.
- Paying subscribers: 388 as at 16 March 2026.
- Monthly returning active users: circa 1,400 in February 2026.
- Annualised recurring revenue: approximately $52k as they near the end of product-market fit.
- Post year end pricing refresh aligned to target users (marketing teams and creators).
Why this matters: Blackbird is not trying to outgun Adobe or DaVinci on traditional desktop editing. It is going after the “workflow tax” – the time lost to file transfers, email chains and single-seat bottlenecks. If elevate.io proves it can remove those frictions in any browser, it can carve out a valuable niche.
The Blackbird division: steady, profitable engine
Amid the pivot to elevate.io, the legacy Blackbird platform remains important. It renewed key customers (CBS Sports, NCSA, CBS19, IMG and the global Winter games in early 2026) and signed a new deal with the Buffalo Bills. Tight cost control and previous restructuring helped lift divisional performance.
- Blackbird division Adjusted EBITDA (pre LTIP and share option costs): £0.71 million (2024: £0.49 million).
- Blackbird division net profit: £0.38 million (2024: £0.02 million).
Contracted but unrecognised revenue across the Group was £1.22 million at year end, down 33% year-on-year, mainly because there is one fewer year remaining on the largest contracts. Of that, £0.87 million is due to be recognised in 2026 and £0.35 million in 2027.
Group financials: cost discipline vs lower revenue
Adjusted EBITDA loss (pre LTIP and share option costs) improved to £1.68 million (2024: £2.14 million) as operating costs fell to £2.95 million from £3.60 million. Capitalised development spend was £1.55 million (2024: £1.70 million), mostly lower Blackbird capitalisation.
The net loss widened to £2.61 million (2024: £2.35 million), driven by higher amortisation from elevate.io starting February 2025, lower finance income and a smaller tax credit.
- Net cash outflow excluding share issues and transfers into short-term deposits: £3.00 million (2024: £3.75 million).
- Cash and short-term deposits at 31 December 2025: £2.72 million. No debt.
Jargon decoder:
- Adjusted EBITDA (pre LTIP and share option costs) is a profitability proxy that strips out non-cash items and long-term incentives to show core operating performance.
- Contracted but unrecognised revenue is signed business scheduled to be recognised in future periods under accounting rules.
- Product-market fit is the stage where a product reliably solves a target customer’s problem, evidenced by repeatable usage and willingness to pay.
Early 2026 signals: bookings, subscribers and cash
Post year end, Blackbird raised a measured £0.5 million before expenses on 19 January 2026 to support elevate.io marketing as product-market fit firms up. The company reports £0.97 million revenue already secured for 2026 at end-February 2026 (up marginally year on year) and £1.18 million of contracted but unrecognised revenue at that point, of which £0.77 million is to be recognised in 2026 and £0.38 million in 2027. These figures are unaudited and subject to exchange rates.
The Board expects the Blackbird division to be profitable again in 2026, backed by customer retention and success initiatives.
My read: positives, pressure points and why it matters
Positives:
- Clear strategy and differentiation: multiplayer, browser-native editing focused on collaboration is a credible wedge into a crowded market.
- Proof of discipline: operating costs down, cash burn reduced 20%, and the Blackbird division posting a solid profit.
- Early traction: 138,000 sign-ups, 388 paying subscribers, and accelerating feature velocity, including integrated AI and Digital Asset Management building blocks.
Pressure points:
- Top-line still small and declined in 2025; contracted revenue backlog fell 33% at year end.
- Group still loss-making, now with higher amortisation from elevate.io.
- Cash is finite. With £2.72 million at year end and net proceeds of about £0.47 million after the January 2026 raise, unchanged cash burn would cover less than a year. Management will need conversion, ARPU growth and/or further funding to scale marketing and development.
Why it matters: if elevate.io can meaningfully cut approval cycle times and remove workstation bottlenecks for brand and creator teams, it earns the right to exist alongside the big incumbents. Evidence of rising monthly returning actives, higher conversion from free to paid and increasing annualised recurring revenue would validate that path.
Key numbers from the RNS
| Revenue (2025) | £1.38 million (down 14%) |
| Adjusted EBITDA loss (pre LTIP and share option costs) | £1.68 million |
| Blackbird division Adjusted EBITDA (pre LTIP/share options) | £0.71 million |
| Blackbird division net profit | £0.38 million |
| Net loss (2025) | £2.61 million |
| Operating costs | £2.95 million (2024: £3.60 million) |
| Capitalised development | £1.55 million |
| Cash and short-term deposits (31 Dec 2025) | £2.72 million; no debt |
| Contracted but unrecognised revenue (31 Dec 2025) | £1.22 million |
| 2026 revenue secured at end-Feb 2026 | £0.97 million* (unaudited) |
| Contracted but unrecognised revenue at end-Feb 2026 | £1.18 million* (unaudited) |
| elevate.io registered users | 138,000+ |
| Paying subscribers (16 Mar 2026) | 388 |
| ARR for elevate.io | ~$52k |
*Unaudited and subject to exchange rate fluctuations.
What to watch next
- Paid conversion and ARPU: does 1.1% move higher as pricing tiers bed in?
- Monthly returning active users: sustained growth from ~1,400 will be a strong leading indicator.
- Backlog rebuild: watch contracted but unrecognised revenue in H1/H2 2026.
- Cash runway: marketing spend vs subscriber growth, and any further funding steps.
- Enterprise validation: further renewals/new logos for the Blackbird division and elevate.io case studies with brand teams.
Bottom line
Blackbird has tightened the belt, kept its core division profitable and pushed elevate.io to a credible early footing. 2026 is framed as the year to prove product-market fit and start a meaningful monetisation curve. If conversion, ARR and user engagement step up while costs remain in check, the investment case strengthens. If not, expect a longer path and possible funding needs. For now, the direction of travel is clear – and execution over the next two quarters will tell us how steep that curve can be.
