Fintel half-year trading update: EBITDA rises 11.2% as margins improve

Fintel's first-half numbers at a glance

Fintel PLC has reported a solid first half of 2026, with profit growth comfortably ahead of revenue growth and trading remaining in line with the Board's expectations.

The provider of software, data and support services to the UK retail financial services sector delivered organic adjusted EBITDA growth of 11.2%, taking the figure to £11.8 million. Organic revenue increased by a more modest 2.0% to £37.4 million.

That gap matters. It indicates that Fintel generated more earnings from each pound of revenue, helped by what management described as improved performance and efficiency.

Key measure	H1 2026	H1 2025	Change
Organic continuing revenue	£37.4 million	£36.7 million	2.0%
Organic adjusted EBITDA	£11.8 million	£10.6 million	11.2%
Continuing revenue	£38.6 million	£36.7 million	5.3%
Continuing adjusted EBITDA	£12.4 million	£10.6 million	16.6%
SaaS and subscription revenue	£26.1 million	£24.2 million	7.9%
Statutory revenue	£42.1 million	£42.4 million	-0.6%
Net debt	£38.2 million	Not disclosed	Not disclosed

Adjusted EBITDA means earnings before interest, tax, depreciation, amortisation, share option charges and exceptional operating costs. It is intended to show underlying operating performance, although investors should remember that it excludes several genuine expenses.

Margin improvement is the standout feature

Fintel described the update as showing "strong trading plus margin accretion". Margin accretion simply means the profit margin has increased.

Based on the disclosed organic figures, adjusted EBITDA represented approximately 31.6% of organic continuing revenue in H1 2026. That compares with approximately 28.9% in H1 2025, an improvement of roughly 2.7 percentage points.

This is arguably the strongest part of the announcement. Organic revenue growth of 2.0% is positive rather than spectacular, but converting that into double-digit adjusted EBITDA growth shows the benefit of operating efficiency and a greater focus on higher-margin activities.

The disposal of Gateway Surveying Services and APS Legal & Associates in April 2026 forms part of that strategy. Fintel said the transactions would allow the Group to concentrate on higher-margin software, data and services activities.

However, investors will need the full half-year results before assessing the complete earnings picture. Statutory operating profit, profit before tax, earnings per share and cash conversion were not disclosed in this trading update.

Recurring revenue continues to strengthen

SaaS and subscription revenue from the continuing business rose by 7.9% to £26.1 million, compared with £24.2 million in the prior-year period.

SaaS stands for software as a service, where customers typically pay regularly to access software rather than purchasing it outright. Subscription income can provide greater revenue visibility because payments repeat over an agreed period, although retention rates and contract terms were not disclosed here.

SaaS and subscription revenue accounted for around two-thirds of Fintel's £38.6 million of total continuing revenue during the period. That recurring element should help reduce reliance on one-off sales and support management's confidence in the outlook.

Within the organic business, Software and Data revenue increased by 2.9%, from £18.4 million to £18.9 million. Services revenue rose by 1.1%, from £18.3 million to £18.5 million.

The growth was therefore spread across both divisions, although Software and Data delivered the faster rate.

Acquisitions and disposals complicate the headline figures

Investors need to distinguish between Fintel's organic, continuing and statutory numbers.

Organic performance excludes the businesses sold during the period and the contribution from Pearson Ham's market pricing business, known as MPN, which Fintel acquired in January 2026.

Including MPN, continuing revenue rose by 5.3% to £38.6 million, while continuing adjusted EBITDA increased by 16.6% to £12.4 million. MPN contributed £1.2 million of revenue and £0.6 million of adjusted EBITDA during the period.

Statutory revenue, however, declined by 0.6% to £42.1 million. This includes £3.5 million from discontinued operations, down from £5.7 million in H1 2025.

The statutory decline is therefore not evidence that the continuing business contracted. It mainly reflects the reduced contribution from operations Fintel has disposed of. The organic and continuing figures provide a clearer indication of current trading momentum.

Product launches support the growth strategy

Fintel also highlighted progress across its technology and data portfolio.

The Group launched Omnicore, a whole-of-market distribution platform designed to broaden access to mortgage and protection markets. It also launched Trust, an artificial intelligence-enabled compliance and oversight product for intermediary customers.

Meanwhile, Defaqto Matrix360 now serves 26 institutional insurance customers. Comparative customer numbers were not disclosed, so the rate of growth cannot be established from this update alone.

These launches support Fintel's aim of increasing technology penetration across its customer base. The key test will be whether adoption translates into sustained organic revenue growth and further recurring income.

The Pearson Ham acquisition also expanded Fintel's proprietary data and market intelligence capabilities. The initial contribution appears profitable at the adjusted EBITDA level, but acquisition costs, integration expenses and longer-term returns were not disclosed.

Balance sheet investment needs watching

Fintel ended the period with £7.3 million of cash and £38.2 million of net debt. Net debt includes lease liabilities and prepaid bank fees and represented leverage of 1.4 times adjusted EBITDA.

The Group also reported £76.5 million of headroom within its £120 million revolving credit facility. A revolving credit facility is a flexible borrowing arrangement that allows a company to draw and repay funds within an agreed limit.

The available headroom provides financial flexibility, while leverage of 1.4 times does not appear excessive in isolation. Still, debt deserves attention because Fintel has been investing in acquisitions, people, products and services.

The update did not disclose interest costs, free cash flow or a prior-year net debt comparison. Those details will be important when judging whether earnings growth is translating into cash and reducing financial risk.

What investors should watch in September

Management said current trading for the year ending 31 December 2026 remains in line with the Board's expectations. The company cited growing demand for technology, data and regulatory support as positive structural drivers.

The immediate positives are improved margins, double-digit organic adjusted EBITDA growth and a 7.9% increase in recurring SaaS and subscription revenue. The main reservations are relatively modest organic revenue growth and the limited cash flow and statutory profit detail in this update.

Fintel plans to publish its full half-year results on 15 September 2026. Investors can read the original company announcement and should look for more detail on cash conversion, integration costs, underlying earnings and progress in reducing or managing net debt.

For now, the update shows a business becoming more profitable even though top-line organic growth remains measured. Whether that combination can be sustained will be the central question when the fuller numbers arrive.