Gfinity half-year results: revenue up 8%, losses narrow, cash rebuilt
Gfinity has posted a steadier first half, with revenue up 8% to £421,381 and a slimmer operating loss of £220,082 for the six months to 31 December 2025. Gross profit rose to £161,940 and gross margin improved to 38.4% (from 33.3%). Cash climbed to £430,788 after a November equity raise of £355,000 net.
The message: the turnaround is edging forward. Gfinity Digital Media (GDM) is back to profitability, Connected IQ (CIQ) is commercialising its ad-tech, and Yentra.AI has launched a product into the fast-emerging sovereign AI niche. Still loss-making, but trending in the right direction.
Key numbers at a glance
| Metric | H1 FY26 (to 31 Dec 2025) | H1 FY25 (to 31 Dec 2024) |
|---|---|---|
| Revenue | £421,381 | £390,099 |
| Gross profit | £161,940 | £129,935 |
| Gross margin | 38.4% | 33.3% |
| Administrative expenses | £382,022 | £401,220 |
| Operating loss | £220,082 | £271,285 |
| Loss before tax | £233,944 | £271,284 |
| Finance costs | £13,862 | £nil |
| Net operating cash flow | £75,082 outflow | £162,060 outflow |
| Cash at period end | £430,788 | £60,602 |
Geographically, North America led with £237,728 of revenue, followed by Rest of World at £129,283 and the UK at £54,370. All revenue in the period was recognised at a point in time.
What’s driving the recovery: GDM, Connected IQ and Yentra.AI
Management frames the plan around three growth pillars. Here’s how each performed and why it matters.
Gfinity Digital Media back to profit
After a bruising FY25 for digital ad-funded media, GDM has stabilised. The division returned to profitability, helped by a pivot to higher-value direct sponsorships and social revenue. A freelance-heavy operating model kept cost of sales broadly flat while revenue increased – the textbook way to expand margin.
The company notes that Q4 FY25 saw a step-up (up to 60% versus Q1 FY25) and that momentum continued into this half. In plain English: audience and monetisation have improved despite headwinds from search algorithm changes and a flood of AI-generated content. The team is adapting to the evolving search and discovery landscape – essential for a media portfolio in gaming and esports.
Connected IQ begins to commercialise contextual ads
CIQ is the licensed AI-driven contextual advertising platform aimed at the connected video market. Contextual advertising places ads based on the content of what you’re watching rather than personal data – a privacy-friendly route that fits the cookie-less future of adtech.
CIQ generated campaign revenue in the period and is in active discussions with major agencies for broader deployment. The company is also exploring white-label licensing, which would let partners use the tech under their own brand. White-label deals are attractive because they can scale without heavy capital spend.
Product wise, CIQ integrated AI “agentic” software to automate parts of media planning for agencies, upgraded emotion detection to analyse the mood of video content, and built a self-serve interface aimed at US customers. Those features broaden the addressable market and – if adoption follows – should support more frequent, repeatable sales.
Yentra.AI targets sovereign AI with Evolve
Yentra.AI (51% owned) formally launched Evolve. “Sovereign AI” here means AI systems that customers own and operate themselves, keeping their data and IP out of third-party large language models. With data sovereignty becoming both a compliance requirement and a competitive advantage, this is a timely space to target.
Yentra.AI is onboarding initial partners in education and enterprise. If these pilots convert, Gfinity gains a new, differentiated revenue stream adjacent to media and adtech – useful diversification for a small-cap platform.
Margins, costs and cash: the quality is improving
Gross margin expanded to 38.4% from 33.3%, helped by a richer revenue mix (more direct sales and tech-led streams). Admin expenses fell 5% to £382,022, showing that cost discipline is sticking even as the company invests in growth initiatives.
Operating loss narrowed by £51,203 to £220,082. Finance costs of £13,862 relate to the convertible loan note, nudging the loss before tax to £233,944. Cash ended at £430,788, up from £137,878 at 30 June 2025 and £60,602 a year earlier, supported by the £355,000 net equity raise. Operating cash outflow improved to £75,082 as collections strengthened and trade receivables reduced by £180,085.
Going concern: progress, but targets still matter
The 2025 Annual Report flagged a material uncertainty around going concern, contingent on hitting growth targets within 12 months. That caveat remains relevant. The Board says progress across GDM, CIQ and Yentra.AI supports those targets, and they continue to prepare accounts on a going concern basis.
Translation: the trajectory is better, cash has improved, but execution in H2 and into 2026 is key to fully removing that uncertainty.
Outlook and my take for retail investors
The CEO expects “strong revenue growth in the coming months and thereafter into 2026,” citing broader CIQ deployments and momentum across all three pillars. The ambition is a more scalable, capital-light model built on adtech licensing and AI services, with GDM providing profitable media reach.
Bull points
- GDM back to profitability with higher-quality revenue mix and lean cost base.
- CIQ generating revenue, enhancing product features, and courting major agencies plus white-label partners.
- Yentra.AI’s Evolve taps a fast-growing sovereign AI market focused on data protection and IP control.
- Gross margin up to 38.4% and operating loss reduced to £220,082.
- Cash rebuilt to £430,788 following a successful £355,000 net fundraise; operating cash burn improved.
Bear points
- Still loss-making with finance costs now present due to the convertible loan.
- Going concern uncertainty in the prior audit highlights the need to deliver near-term growth.
- Digital media remains exposed to algorithm shifts and AI-driven content competition.
- CIQ and Yentra.AI are early-stage; revenue traction must scale beyond pilot campaigns and onboarding.
What could move the share price next
- Signed, scaled CIQ deployments with major agencies, or a first white-label licensing deal.
- Contract wins or paid roll-outs for Yentra.AI’s Evolve in education or enterprise.
- Proof that GDM’s profitability is durable through H2, with continued direct sponsorship growth.
- Further improvements in operating cash flow and clarity on the going concern position in the FY26 results.
Jargon buster
- Contextual advertising: matching ads to the content being viewed, not to personal data.
- Connected video market: streaming and connected TV environments where ads run on internet-delivered video.
- Gross margin: gross profit divided by revenue – a measure of how efficiently revenue turns into profit after direct costs.
- White-label licensing: letting partners sell your technology under their brand, typically a capital-light scaling model.
- Sovereign AI: AI systems run and owned by the customer so their data and IP are not absorbed into third-party models.
Bottom line: Gfinity’s half-year shows meaningful operational progress – better margins, leaner costs, and more cash – with three shots on goal in media, adtech and sovereign AI. Delivery against the H2 pipeline will determine whether this recovery translates into sustained revenue growth and, ultimately, profitability.
