PCI-PAL PLC Reports Strong FY2025 Results with 25% Revenue Growth and Profit Turnaround

PCI Pal delivers record ARR, strong revenue growth, and a clean move into adjusted profit

PCI-PAL PLC has posted a very tidy set of FY2025 numbers. Revenue rose 25% to £22.48 million, Annual Recurring Revenue (ARR) climbed 25% to £19.26 million, and the company swung to an adjusted profit before tax of £0.81 million from a £0.57 million loss last year. Statutory loss before tax narrowed to £0.17 million, with a small profit after tax of £0.04 million thanks to a £0.21 million tax credit.

The story is classic SaaS: high gross margin, high recurrence, and improving operating leverage. With Net Revenue Retention up to 104% and Contracted ARR (CARR) at £22.20 million, the revenue base looks broader, stickier, and better primed for FY26.

Key numbers at a glance

Metric	FY25	FY24	Change
Revenue	£22.48m	£17.96m	+25%
Gross margin	90%	89%	+1ppt
Recurring revenue	£20.49m (91%)	£16.06m (89%)	+27%
ARR	£19.26m	£15.45m	+25%
CARR	£22.20m	£19.21m	+16%
NRR	104%	102%	+2ppts
GRR	95%	97%	-2ppts
Adjusted EBITDA	£2.32m	£0.87m	+167%
Adjusted PBT	£0.81m	£(0.57)m	n/a
Statutory LBT	£(0.17)m	£(1.71)m	+90%
Profit after tax	£0.04m	£(1.18)m	n/a
Cash	£3.92m	£4.33m	-£0.41m

What drove the improvement

The engine room is working. ARR rose by a record £3.8 million, helped by 91% of revenue coming from recurring contracts. Net Revenue Retention of 104% means existing customers are expanding faster than any shrinkage from churn, which is what you want to see in a scaled SaaS model.

• Channel-first wins: 82% of contracts were signed via partners, accounting for 68% by value. RingCentral joined the ecosystem in the year and is already live in Europe and North America.
• Flagship renewal: a three-year renewal with the UK Department for Work and Pensions worth over £5.0 million TCV, with an option to renew for a further three years.
• Geography: new hires on the ground in mainland Europe are already paying off, including displacing a competitor at a top-50 global hotel chain.
• Platform reliability: uptime exceeded 99.999% across a 700+ customer base, with Q4 NPS at a perfect 100 for go-lives and CSAT at 91%.

Recurring visibility and why it matters

Quick jargon check:

• ARR is the annualised value of live subscriptions at period end.
• CARR is the annualised value of all signed contracts, including those not yet live. It gives line-of-sight to future ARR.
• NRR shows how revenue from existing customers changes over a year after churn and upsells. Above 100% is expansion.
• GRR is pure retention without upsells. Higher is better.

With ARR at £19.26 million and CARR at £22.20 million, PCI Pal enters FY26 with meaningful visibility. The high proportion of revenue recognised over time, and sizable deferred income balances, support predictability. The step up in NRR to 104% hints that cross-sell into the installed base is improving, which should compound as new adjacent products arrive.

Regional performance and platform metrics

Revenue grew across the board: EMEA £13.94 million (+24%), North America £8.01 million (+27%), and ANZ £0.53 million (+26%). Gross margin held at 90%, consistent with a pure-play SaaS platform and the cost profile of resale via partners.

Importantly, 100% of secure payments revenue now comes from PCI Pal’s multi-tenanted global cloud platform on AWS. That standardisation supports uptime, scalability, and feature velocity. It also underpins the customer satisfaction scores and the Group’s 95% GRR, which remains excellent even if down 2 points year on year.

Cash, investment, and firepower

Operating cash flow was £1.21 million. Cash ended the year at £3.92 million, down modestly from £4.33 million after £1.77 million of capitalised development spend and £0.51 million of non-operational costs. The Group remains debt free and has an undrawn £3.0 million revolving credit facility with HSBC, extended post year end to 31 July 2027.

In short: enough headroom to keep investing in product, marketing, and international reach, while staying disciplined on costs. Underlying admin expenses rose 17% but fell to 86% of revenue, showing operating leverage.

Product roadmap and AI positioning

PCI Pal launched the first solution in its fraud management suite after year end: an AI-powered Fraud Risk Scoring product. Data analytics enhancements for reporting are also out, giving customers better insight into usage and optimisation opportunities.

The company is deliberately positioning at the intersection of payments, security, and conversational AI. Integrations span the major contact centre-as-a-service platforms and several voicebot and chatbot vendors. Notably, recent wins include the Group’s largest Conversational AI deal to date. This is a sensible way to capture rising interaction volumes as agent and bot flows blend.

Current trading and outlook

• Trading at the start of FY26 is in line with management expectations.
• New business highlights include the largest Canadian deal to date via a partner for a top 10 insurer, and the largest Conversational AI deal so far.
• A new US-based CMO has been hired to scale marketing and support ARR growth.

Management is guiding to continued investment to sustain organic ARR growth in the 18-20% range through FY27 and beyond. With NRR trending up and a broader product suite, that looks achievable, albeit execution will matter.

Watch-outs worth noting

• GRR dipped to 95% from 97%. Still strong, but worth monitoring in case macro pressure creeps into renewals.
• Customer concentration: the largest customer represented 17% of FY25 revenue, which adds some key-account risk.
• Cash was lower year on year. Not alarming given positive operating cash and the undrawn facility, but the increased investment plan will need to translate into sustained ARR growth.
• Non-operational costs of £0.51 million were expensed in the year. These are excluded from adjusted metrics, so keep an eye on how such items trend.

My take for investors

This is a high-quality SaaS print: double-digit top-line growth, record ARR additions, rising NRR, expanding partner leverage, and a clean step into adjusted profitability. The platform’s reliability and the DWP renewal validate enterprise-grade credentials, and the RingCentral integration opens a big new route to market.

On the flip side, retention softened slightly and cash ticked down, so FY26 execution on marketing and product cross-sell becomes important. If PCI Pal can keep NRR at or above 104% and convert CARR efficiently, the runway to sustained profitability and cash build looks good.

Overall, a confident set of results that support the investment case for a scalable, partner-led, cloud payments platform benefiting from the shift toward AI-enabled contact centres.