Netcall FY26 growth accelerates as cloud and AI demand builds

What has Netcall announced?

Netcall has delivered a strong FY26 trading update, with revenue, adjusted earnings and net cash all expected to come in slightly ahead of stated market consensus.

For the year ended 30 June 2026, the enterprise software group expects revenue to rise by 20% to £57.7 million. That includes organic growth of 12%, which excludes revenue from the acquisitions of Jadu Holdings, Smart and Easy, and Govtech Holdings.

Adjusted EBITDA is expected to increase by 23% to £12.1 million. EBITDA means earnings before interest, tax, depreciation and amortisation. Netcall's adjusted measure also excludes items including share-based payments, transaction costs and contingent consideration.

The update remains subject to audit, but it gives investors a fairly clear view of how FY26 has progressed.

Netcall's key FY26 figures

Metric	FY26 expected	FY25	Change
Revenue	£57.7 million	£48.0 million	20%
Organic revenue growth	12%	Not disclosed	Not disclosed
Adjusted EBITDA	£12.1 million	£9.8 million	23%
Adjusted EBITDA margin	21%	20%	1 percentage point
Cloud ACV	£46.3 million	£33.9 million	37%
Underlying organic Cloud ACV growth	24%	Not disclosed	Not disclosed
Total ACV	£53.7 million	£42.2 million	27%
Year-end net cash	£21.0 million	£27.2 million	Down £6.2 million

The company's stated consensus expectations were revenue of £57.6 million, adjusted EBITDA of £12.0 million and net cash of £20.4 million. Netcall's estimates are therefore modestly ahead on all three measures, although the differences are small.

Cloud growth is the standout feature

Cloud Annual Contract Value, or Cloud ACV, increased by 37% to £46.3 million. ACV is broadly the annualised value of Netcall's cloud and support contracts, together with annualised recurring Intelligent Document Processing revenue.

This measure matters because it provides an indication of the scale of contracted recurring business. A larger recurring revenue base can improve future revenue visibility, although ACV is not the same thing as recognised revenue in a set period.

Underlying organic Cloud ACV growth was 24%. This excludes acquired ACV and the effect of a previously announced contract win and its renewal, making it a useful view of growth from the underlying cloud operation.

Total ACV rose by 27% to £53.7 million. Netcall said this reflected both new customer wins and existing customers purchasing additional Liberty subscriptions and modules.

That combination is encouraging. Winning new customers expands the base, while selling more products to existing users can deepen relationships and improve the economics of customer acquisition.

Profit growth is running ahead of revenue

Adjusted EBITDA grew faster than revenue, rising by an expected 23% against revenue growth of 20%.

The adjusted EBITDA margin improved from 20% to 21%. Netcall also said approximately 30% of incremental organic revenue converted into adjusted EBITDA. In plain English, around 30p of additional organic revenue flowed through to adjusted EBITDA for every extra £1 generated.

Management attributes this operating leverage to growth in subscription revenue. Software businesses can potentially expand margins as recurring sales increase because the cost base does not always need to grow at the same rate as revenue.

The one percentage point margin improvement is not dramatic, but it supports the description of FY26 as a year of profitable growth rather than growth achieved at the expense of earnings.

AI products are moving into live customer use

Sales of Netcall's AI-related products reached almost three times the prior-year level. More than 40% of new cloud sales orders included these products.

Chief executive James Ormondroyd said customers were moving from experimentation to live use across customer interactions and workflows. That is strategically important because practical deployment is more valuable than general interest in AI technology.

However, investors should keep the figures in context. Netcall has disclosed the rate of growth and the proportion of new orders containing AI products, but it has not disclosed the absolute value of AI-related sales or their contribution to group revenue and profit.

It is therefore clear that adoption is accelerating, but the precise financial significance of AI products is not yet disclosed.

Jadu integration brings early benefits

Netcall acquired Jadu in December 2025, and the organisational integration is now complete.

Annualised cost synergies of close to £1.0 million have been achieved. Annualised means the savings are expressed as the amount they would represent over a full year, rather than necessarily the amount recognised during FY26.

The group has also secured initial cross-sales. This suggests that Netcall has started selling products across the combined customer bases, although the value of those sales was not disclosed.

Jadu broadens Netcall's digital experience and AI capabilities. The next test will be whether the group can turn the initial cross-selling activity into a meaningful and repeatable source of growth.

Why did net cash fall?

Netcall ended FY26 with net cash of £21.0 million, down from £27.2 million a year earlier. Net cash is cash less borrowings.

At first glance, that decline could look at odds with management's statement that cash generation increased. The main explanation is acquisition activity: Netcall made acquisition-related payments of £13.4 million during the year, net of cash acquired.

The company therefore remained in a net cash position after funding those payments. Management believes the balance sheet gives it capacity to continue investing in the Liberty platform and pursue further acquisitions that are intended to enhance earnings.

Further dealmaking could add capabilities and customers, but it also brings integration, valuation and execution risks. Jadu's early integration progress is positive, though it does not remove those wider risks.

What should investors watch in FY27?

Netcall enters FY27 with what management describes as a record sales pipeline, supported by demand for cloud-based automation and AI-enabled products.

A pipeline represents potential business rather than contracted revenue, so conversion will be crucial. Investors will want to see whether this demand translates into continued organic revenue growth, new cloud contracts and further margin progress.

Other points to monitor include the absolute contribution from AI-related products, the pace of Jadu cross-sales and any additional acquisitions. Cash generation will also matter if Netcall continues to use its balance sheet for M&A.

Overall, the FY26 update shows broad-based progress. Revenue and adjusted EBITDA are growing at double-digit rates, margins have edged higher, Cloud ACV has expanded strongly and the Jadu integration has delivered close to £1.0 million of annualised cost synergies.

The main qualifications are that the figures remain unaudited, AI's financial contribution is not disclosed and the record pipeline still needs to convert into orders. Even so, Netcall is entering FY27 with a larger recurring revenue base, net cash and clear momentum across cloud and AI products.