Dianomi FY25 trading update: margins up, H2 back to profit, AI bets building
Dianomi has issued a trading and publisher expansion update for the 12 months to 31 December 2025. Revenues came in broadly in line with expectations, gross profit improved, and the business returned to growth and profitability in the second half of FY25. There is also fresh momentum on the publisher side, plus a new AI partnership aimed squarely at premium finance audiences.
All FY25 figures are subject to audit.
Key numbers vs last year and market expectations
| Metric | FY25 (unaudited) | FY24 | Market expectations for FY25* |
|---|---|---|---|
| Revenue | £27.4 million | £28.0 million | £27.5 million |
| Gross profit | £7.5 million | £7.3 million | £7.0 million |
| EBITDA | Loss of approximately £0.3 million | Loss of £0.3 million | Loss of £1.1 million |
| Year end cash | £5.8 million | £8.8 million | Not disclosed |
*The Company believes market expectations for FY25 to be revenues of £27.5 million, gross profit of £7.0 million and EBITDA loss of £1.1 million.
Revenues were essentially in line, just £0.1 million below expectations. The standout is margin: gross profit beat expectations by £0.5 million and EBITDA loss was substantially better than forecast by £0.8 million. On simple maths, gross margin improved to roughly 27.4% (FY24: ~26.1%), which is a meaningful uptick for an adtech platform.
Quick definitions: gross margin is gross profit divided by revenue, a proxy for take-rate and efficiency. EBITDA is earnings before interest, tax, depreciation and amortisation – a cash flow proxy before capital items.
Why margins improved despite a subdued ad market
Dianomi says the market was subdued, reflecting wider macro conditions. That is consistent with what we have seen across digital advertising, especially in finance-heavy verticals. Even so, the Group delivered year-on-year growth in gross profit thanks to ongoing operational optimisations and product development.
In plain English, that usually means better yield management, improved traffic quality, and a tighter focus on profitable formats and campaigns. Dianomi’s niche – premium Business, Finance and Lifestyle content – tends to be more resilient and commands higher advertiser trust, which helps sustain take-rates.
Premium publisher expansion: more CNN and Associated Press inventory
Post year end, Dianomi has expanded its relationships with CNN News and Associated Press. This involves onboarding additional ad units on new pages across both publishers’ wider sites, building on existing integrations. The benefits are expected to flow from Q2 FY26 onwards.
Why it matters:
- More inventory with tier-one publishers is valuable, particularly in finance and business contexts where advertisers like Charles Schwab, Invesco and Bank of America are active.
- It strengthens Dianomi’s distribution moat, which already reaches around 500 million digital devices each month across more than 250 premium publishers, including Reuters, CNN Business, the Times and the WSJ.
- Given the H2 return to growth and profitability, incremental high-quality supply could underpin further margin improvement if demand continues to stabilise.
AI partnership with Dappier: an answers engine for finance publishers
Dianomi has partnered with Dappier, an AI media infrastructure company, to launch an advertising-monetised, AI-powered financial answers engine for premium publisher websites. The proposition blends Dappier’s conversational AI and monetisation tech with Dianomi’s scaled distribution and finance-focused ad marketplace.
What to take from this:
- It is a logical move to embed monetised, contextually relevant answers within premium finance content. That should play well with Dianomi’s audience and advertiser base.
- Execution will matter. Publisher adoption, user engagement quality and advertiser demand will determine whether this becomes a meaningful revenue stream.
- This sits neatly alongside Dianomi’s contextual ethos – adverts that mirror the look and feel of the page – which historically drives better engagement and yield.
Cash, profitability and the FY26 setup
Year end cash was £5.8 million, down from £8.8 million at the end of FY24. The Company notes a return to profitability in H2 FY25, which should help cash dynamics if sustained. There is no guidance on FY26 today, but the CNN and AP expansions are expected to contribute from Q2 FY26, providing a potential tailwind into the mid-year run-rate.
Headline takeaways for the model:
- H2 profitability is a positive inflection. If margins hold and revenue growth resumes, breakeven-to-positive EBITDA in FY26 looks more achievable, though this is not guided.
- Cash provides a buffer while new partnerships ramp, but year-on-year reduction underlines the need for continued operating discipline.
- All FY25 figures are subject to audit, with full results due in May 2026.
Positives and watch-outs for investors
What looks good
- Beat on gross profit and EBITDA vs market expectations, driven by better margins.
- Return to growth and profitability in H2 FY25 after a tough first half.
- Deeper integrations with CNN News and Associated Press, with incremental units slated to benefit from Q2 FY26.
- Clear strategic alignment with premium finance advertisers and publishers, supporting pricing power and engagement.
- AI partnership with Dappier adds an innovative, finance-specific product that could open new monetisation lanes.
What to keep an eye on
- Macroeconomic sensitivity in digital advertising – a weak environment can cap top-line growth.
- Ramp timing for new publisher units – benefits are expected from Q2 FY26 rather than immediately.
- AI monetisation is promising but not yet proven at scale – adoption and unit economics will be key.
- Cash reduced to £5.8 million at year end – continued operating discipline remains important.
My take: quietly confident, with catalysts in H2 FY26
This update reads positively. While revenue was flat year on year and broadly in line with expectations, the quality of revenue improved, as evidenced by the stronger gross margin and a better-than-expected EBITDA outcome. That, combined with H2 profitability, suggests operational improvements are sticking.
The expanded CNN and AP partnerships are tangible and should support both scale and yield once live across more pages. The Dappier tie-up is a smart, targeted bet on AI where Dianomi already has an edge: premium finance content and advertisers. Execution risks remain, but the direction of travel is encouraging.
Next milestones: audited FY25 results in May 2026 and evidence of revenue acceleration as the new publisher units and AI product roll out from Q2 FY26. For now, this is a margin-led recovery story with credible catalysts on the horizon.
