PCI-PAL PLC H1 Trading Update: Record ARR, Strong Pipeline, and 100% Uptime
PCI-PAL PLC (AIM: PCIP) has posted a punchy first half to 31 December 2025, with record gains in recurring revenue and a solid step-up in customer expansion. If you care about SaaS-style metrics, this update ticks the right boxes: double-digit ARR growth, improving net retention, and flawless platform reliability.
Below I break down what was reported, why it matters, and what to watch as we head into H2 FY26.
Key Numbers at a Glance
| Metric | H1 (to 31 Dec 2025) | Year-on-year | Notes |
|---|---|---|---|
| ARR (Annual Recurring Revenue) | £20.3m | +21% (+25% constant currency) | Record real-term increase in a six month period |
| CARR (Contracted ARR, leading indicator) | £24.0m | +18% (+21% constant currency) | Points to future ARR growth |
| Revenue | £11.3m | +7% | +14% on a normalised basis |
| GRR (Gross Revenue Retention) | 95% | Flat (95% in 2024) | Retention before upsell/cross-sell |
| NRR (Net Revenue Retention) | 105% | Up from 103% | Includes expansion from existing customers |
| Cloud platform uptime | 100% | — | Across the half year |
| Cash | £2.6m | — | No bank debt; reflects additional cash investment in Sept 2025 |
Record ARR and CARR: Why Recurring Revenue Is Moving Up
ARR rose to £20.3m, up 21% year on year (25% on a constant currency basis). ARR is the annualised value of recurring contracts – the lifeblood of a SaaS business. A record real-term increase over a six month stretch signals that new wins and faster deployments are flowing through more efficiently than before.
CARR reached £24.0m, up 18% (21% constant currency). CARR is PCI Pal’s leading indicator of future ARR – think of it as contracted business that has not yet fully translated into recognised recurring revenue. The gap between CARR and ARR offers a helpful buffer for future growth as deployments go live.
Revenue Growth and the “Normalised” Comparison Explained
Revenue for the half was £11.3m, up 7% year on year, or 14% on a normalised basis. Normalised here means adjusting for revenues deferred from FY24 and recognised in FY25, which makes last year’s comparator a bit lumpy. Stripping that out gives a cleaner view of underlying growth.
In short: headline growth looks modest at 7%, but the normalised +14% better reflects the momentum we’re seeing in ARR and CARR.
Retention Metrics: GRR 95%, NRR 105% and Why They Matter
Gross Revenue Retention (GRR) stayed firm at 95%. GRR measures the percentage of recurring revenue retained from existing customers before upsell or cross-sell – stability here is a good sign for customer satisfaction and product stickiness.
Net Revenue Retention (NRR) improved to 105% from 103%. NRR includes expansion within the customer base. Rising NRR suggests PCI Pal is increasing wallet share through additional seats, products, or usage, which compounds ARR growth without relying solely on new logos.
Operational Reliability: 100% Uptime Underpins Confidence
PCI Pal delivered 100% platform uptime in H1. For a global provider of secure payment solutions embedded in business communications – voice, chat, social, email, and contact centre – reliability is not a nice-to-have. It is central to win rates, retention, and partner trust.
The company deploys from AWS with regional instances across EMEA, North America, and ANZ. That footprint matters for latency, compliance, and resilience in regulated industries.
Go-to-Market Momentum: Partners, SMB and Enterprise, and US Healthcare
Management highlights “the highest levels of demand” for PCI Pal’s core secure payments products and says H1 delivered the strongest first-half for new business on record. The integrated partner ecosystem remains a strategic focus, and the update points to deepening relationships with key partners.
There is also planned growth across both SMB and enterprise segments, plus “further penetration” of the US healthcare sector – a target vertical. Healthcare tends to value compliance and data security, so this is a logical fit for PCI Pal’s proposition.
Cash and Balance Sheet: £2.6m Cash, No Bank Debt
Cash at 31 December 2025 was £2.6m. The company notes this reflects additional cash investment outlined in September 2025. There is no bank debt.
While debt-free is a plus, the cash balance is modest for a global SaaS provider, so investors will want to see continued efficient deployments (to convert CARR into ARR and then revenue) and prudent cost control. No profitability metrics were disclosed in this update.
Outlook: Strong Momentum Into H2 and Board Expectations for FY26
The CEO cites a “highly encouraging sales pipeline” and confidence in meeting the Board’s expectations for FY26. The combination of record H1 new business, solid retention, and 100% uptime supports that stance.
Key leading indicators – CARR at £24.0m and NRR at 105% – point to ongoing growth if deployments remain efficient and churn stays low.
My Take: What’s Positive, What to Watch, and Why It Matters
Positives
- Record ARR build (+21% reported, +25% constant currency) with CARR out in front at £24.0m.
- Improving NRR at 105% shows healthy expansion within the base.
- 100% uptime underlines platform quality – critical for payments embedded in contact centre workflows.
- Partner ecosystem traction and targeted US healthcare expansion broaden the growth runway.
Watch-outs
- Cash of £2.6m is lean; no debt helps, but execution needs to stay tight. Further funding is not indicated in this RNS, but the balance bears monitoring.
- Headline revenue growth of 7% is softer than ARR growth; the normalised +14% is more encouraging, but conversion from CARR to ARR to revenue is the hinge.
- No margin or profitability disclosure in this update – those details will matter for valuation as scale builds.
Why it matters
For a SaaS payments security business, the trifecta is growth, retention, and resilience. PCI Pal’s H1 shows progress on all three. If the company keeps turning contracted work into live ARR while maintaining 95%+ GRR and 100% uptime, the model should continue to compound.
The next catalysts are likely to be H2 conversion of CARR, further partner wins, and any colour on profitability or cash trajectory in the next update. For now, the direction of travel looks positive.
