KRM22 annual results 2025: strong ARR growth, cleaner balance sheet, but profits still lag
KRM22 has put out a genuinely important set of full-year results. The headline figures are good: annualised recurring revenue, or ARR, rose to £7.6 million, recognised revenue increased to £7.4 million, and the company finished the year debt-free after a £9.2 million fundraise.
For retail investors, that combination matters. This is a software business selling risk management tools into capital markets firms, so recurring revenue and balance sheet strength are usually more useful markers than reported profit alone. On that basis, 2025 looks like a step forward.
| Key number | 2025 | 2024 |
|---|---|---|
| ARR | £7.6 million | £6.6 million |
| ARR growth at constant FX rates | 18.8% | 22.2% |
| Total revenue recognised | £7.4 million | £6.8 million |
| Adjusted EBITDA | £0.8 million profit | £1.0 million profit |
| Loss before tax | £2.1 million | £1.4 million |
| Gross cash | £5.2 million | £1.0 million |
| Net cash / debt | £5.2 million net cash | £3.5 million net debt |
KRM22 ARR growth is the standout number in these 2025 results
ARR is the annual value of contracted software subscription revenue, normalised to a one-year period. In plain English, it gives you a cleaner read on the predictable part of the business than statutory profit does.
KRM22 grew ARR to £7.6 million from £6.6 million, or from £6.4 million at constant foreign exchange rates. That constant-currency growth rate of 18.8% is strong, especially for a business of this size operating in financial markets where buying decisions can be slow and bureaucratic.
New contracted ARR came in at £1.6 million, only slightly below the £1.7 million delivered in 2024. That is encouraging because it suggests demand has not fallen away. It is also notable that £1.4 million of that came from existing customers, which usually points to decent product stickiness and upsell potential.
The customer base also grew. KRM22 ended 2025 with 51 institutional customers and signed eight new ARR contracts during the year, including three new customers. For a niche B2B software business, that is respectable progress rather than flashy growth, but steady progress is often what matters most.
Why the £9.2 million fundraise changes the KRM22 investment case
The biggest strategic development here is not revenue. It is the fundraise completed in November 2025.
KRM22 raised £9.2 million gross through a subscription and placement at 40 pence per share. The money was used to settle the convertible loan with Trading Technologies International, Inc., leaving the company debt-free and with approximately £3.0 million to fund expansion into multi-asset solutions.
That is a big reset. At the end of 2024, the group had net debt of £3.5 million. By the end of 2025, it had £5.2 million of net cash. Net assets also swung from negative £2.2 million to positive £5.1 million.
In my view, this is the single most important takeaway from the release. A small quoted software company with debt can end up spending too much time managing the lender instead of growing the business. A debt-free software company with cash has far more room to invest, hire and ride out slow sales periods.
KRM22 revenue quality looks solid, with recurring income doing the heavy lifting
Total revenue recognised rose 9.9% to £7.4 million. Better still, 95.0% of that revenue came from recurring customer contracts, up from 92.2% in 2024.
That is exactly what you want to see from a software-as-a-service, or SaaS, business. Non-recurring revenue was just £0.4 million and mainly related to implementation and development work. The core story is subscriptions, not one-off project fees.
Cash flow also deserves credit. Net cash from operating activities was £2.4 million, up from £1.4 million. KRM22 said over 70% of ARR receipts are invoiced annually in advance, which helps explain why cash generation can look healthier than the profit and loss account.
Deferred revenue rose to £5.0 million from £2.8 million. Deferred revenue means customers have already paid for services that will be recognised as revenue later. That is usually a helpful sign of contracted visibility.
The weak spots in KRM22 results: lower EBITDA, wider losses and margin pressure
This was not a spotless update. Adjusted EBITDA, a measure of underlying operating profitability before non-cash and exceptional items, slipped to a profit of £0.8 million from £1.0 million.
Gross margin also fell to 78% from 83%. Management said that was due to higher AWS hosting costs and sales commissions payable to Trading Technologies on new ARR contracts. Neither is fatal, but investors should keep an eye on whether margin pressure settles or becomes a pattern.
The statutory loss before tax widened to £2.1 million from £1.4 million, while the operating loss increased to £1.6 million from £0.9 million. A big part of that came from a £0.9 million unrealised foreign exchange loss, mainly driven by sterling to US dollar movements, plus £0.2 million of fundraise and debt extinguishment costs.
So the ugly bottom-line number does need some context. It is not purely a sign that the core business deteriorated. But it is still a loss, and loss per share worsened to 5.1p from 3.6p.
KRM22 product traction is real, especially with top FCM customers
There are some credible commercial signals inside this statement. KRM22 says its Risk Manager and Limits Manager applications are now used by 18 of the top 60 futures commission merchants, or FCMs. That is a useful proof point in a specialist market where credibility matters.
There is also evidence that existing customers are broadening their usage. Of the £1.4 million of new ARR from existing customers, £0.9 million came from customers purchasing additional applications. That matters because cross-selling is usually cheaper and more profitable than winning brand new clients.
Post year-end, the Limits Manager application also won Risk Management Solution of the Year at the FOW International Awards 2026. Awards do not guarantee revenue, but in enterprise software they can help with sales conversations and market positioning.
2026 outlook for KRM22: better funded, but sales timing is clearly a near-term issue
This is where the update becomes more mixed. Contractual ARR as at the date of the report is still £7.6 million at current exchange rates. In other words, post-year-end contract wins have been offset by unfavourable foreign exchange movements.
More importantly, KRM22 said only £0.1 million of new contractual ARR has been signed since the start of 2026. Management blamed extended vendor onboarding and internal governance processes, linked to heightened volatility and geopolitical uncertainty in the Middle East.
That explanation may be fair, but investors should not ignore it. Slow conversion is a real issue for smaller software companies, especially when they sell high-value, low-volume contracts into big financial institutions. The pipeline may be robust, as management says, but pipeline is not revenue until contracts are signed.
The company also describes 2026 as an “investment year”. That usually means higher spending now in the hope of stronger returns later. So while the balance sheet is stronger, near-term profitability may stay under pressure as KRM22 hires across product, engineering, client services, sales and marketing.
What KRM22 shareholders should take from these audited 2025 results
My read is positive, with a few clear caveats. KRM22 has improved the quality of the business by growing recurring revenue, increasing cash, removing debt and strengthening the balance sheet. For a small AIM software company, that is meaningful progress.
The catch is that it is still not delivering statutory profits, margins went backwards, and 2026 has started slowly in terms of new signed ARR. There was also dilution from the share issue, with 23,112,500 new shares placed at 40 pence.
Even so, these results look better than a simple glance at the loss figure suggests. KRM22 now has more financial breathing room and a clearer path to invest in its multi-asset product strategy. If management can turn that stronger platform into faster contract conversion, the story could get more interesting from here.
For now, I would file this as a solid strategic year rather than a breakout financial one. The business is stronger. The numbers are not perfect. But compared with where KRM22 stood a year ago, this is a much healthier position.
