Quartix Forecasts Strong H1 Growth with ARR Reaching £35m

Accelerating Growth and Efficiency

Quartix Technologies has dropped a notably upbeat trading statement ahead of its interim results later this month. For a company specialising in subscription-based vehicle tracking, this update reads like a roadmap to scaling efficiently – and shareholders should be leaning in.

The Financial Headlines: Strong Momentum

For H1 2025 (period ending 30 June), management estimates:

• Revenue: £17.5m (up 8.7% from £16.1m in H1 2024)
• EBITDA & Profit Before Tax: Both around £3.6m/£3.5m (surpassing last year’s £2.7m despite a £400k reorganisation hit)
• Free Cash Flow: £2.6m (more than double H1 2024’s £1.1m), lifting cash reserves to £4.1m

Critically, they’re confident in hitting full-year market expectations (£36m revenue, £7m EBITDA) with free cash flow likely to nudge ahead of forecasts. The icing? A proposed interim dividend leap to 2.5p per share (from 1.5p).

ARR: The Engine Room

Here’s where Quartix truly shines. Annualised Recurring Revenue (ARR) – their lifeblood subscription revenue – hit £35m, up £2.7m in just six months. Zoom out, and trailing-twelve-month (TTM) growth hit £4.1m (13%), accelerating from £3.1m last year.

Two subtle wins underpin this:

• Net Revenue Retention (NRR) improved to 97.3% (from 95.7%) – meaning existing customers are spending more.
• New customer acquisition jumped 13% year-on-year to 3,962, driving 40,698 new subscriptions.

This isn’t just growth; it’s efficient growth.

Geographical Pulse Check

The regional breakdown reveals fascinating drivers:

• UK/Ireland (55% of ARR): Steady 10% ARR growth, reinforcing core market strength.
• France (26.5% of ARR): 14% TTM growth despite a £500k 4G upgrade drag – a strategic bet on future efficiency.
• USA: New customer surge (+52%) signals serious traction.
• Italy, Spain & Germany: Blistering >35% ARR growth – smaller bases, but explosive potential.

Diversification isn’t just a buzzword here; it’s a growth multiplier.

Restructuring for the Long Game

June’s reorganisation (£400k cost) merged backend teams and created a dedicated front-end unit focused purely on user experience. The payoff? From July, this slashes £500k annually from overheads – even after new senior hires. This isn’t cost-cutting for its own sake; it’s freeing up fuel for R&D and sales firepower.

Outlook: Confidence with Capital Discipline

Executive Chairman Andy Walters’ summary says it all: record ARR growth, a fat installation backlog, and “confidence” for 2025-2026. The real story? Quartix is demonstrating how to scale subscription models – balancing reinvestment (tech, geographies), retention (rising NRR), and ruthless operational efficiency. That £35m ARR milestone isn’t just a number; it’s a springboard.

Mark your diaries: Full interim results land 24 July. If this teaser’s anything to go by, they’ll be worth the wait.