Quartix’s 2025 trading update: growth beats, cashflow strength and a cleaner dividend policy
Quartix Technologies has served up a confident trading statement for the year to 31 December 2025. The headline: revenue and adjusted EBITDA are expected to come in ahead of market expectations, with free cashflow at £5.1 million and year-end cash of £5.6 million.
On the subscription engine that drives this business, ARR rose 14% to £37.0 million, with net revenue retention stepping up to 98.1% from 95.7% in 2024. Management is also simplifying the dividend approach and signalling more investment in growth for 2026. A couple of caveats are worth noting – an ongoing accounting review with the FRC and some uneven regional performance – but the tone is positive.
Note: these are management estimates and may be revised after final December numbers and the audit.
Key numbers at a glance
| Metric | 2025 trading update | Context |
|---|---|---|
| Revenue | Ahead of expectations | Market expectation: £36.2m (not disclosed by Quartix) |
| Adjusted EBITDA | Ahead of expectations | Market expectation: £7.7m (not disclosed by Quartix) |
| Free cashflow | £5.1m | Ahead of £4.4m expectation |
| Year-end cash | £5.6m | After outflows for 4G upgrades, restructuring and tax |
| ARR (Annualised Recurring Revenue) | £37.0m (+14%) | +£4.5m growth, on a constant-currency basis |
| NRR (Net Revenue Retention) | 98.1% | Up from 95.7% in 2024 |
| Subscription base | 333,922 (+11%) | Installed units on subscription |
| Customer base | 32,942 (+9%) | New customers acquired: 7,501 (+9%) |
| New subscriptions | 79,576 (+7%) | Growth across core markets |
| Dividend | Final 7.5p proposed | Total ordinary dividend 10p (subject to approval) |
Definitions: ARR is the annualised value of subscription contracts and is a key forward-looking indicator for SaaS-like businesses. NRR measures how revenue from existing customers changes over a year, factoring in upgrades and churn. Free cashflow is cash generated after operating and capital expenditures. Adjusted EBITDA is profit before interest, tax, depreciation and amortisation, adjusted for items management deems non-core.
Why this beat matters
Beating revenue and EBITDA expectations without giving up cash generation is exactly what investors want to see from a subscription model. Free cashflow of £5.1 million was delivered despite heavy outflows for the French 4G upgrade (about £1.0 million), restructuring (about £0.4 million) and an extra £0.7 million tax prepayment. That suggests good unit economics and operating discipline.
ARR growth accelerated to £4.5 million, a 25% improvement on 2024’s £3.6 million (constant currency). NRR of 98.1% shows customers are sticking around and upselling – helped by the connected dashcam option – which is typically a leading indicator for future revenue growth.
Regional performance: solid in the UK and France, acceleration in Italy and Spain
UK and Ireland: record ARR growth
ARR rose by £1.9 million to £19.65 million (+11%). New subscriptions grew by 2% to 31,125, and new customer adds were stable at 1,599. The upsell programme for connected dashcams contributed meaningfully – a healthy sign that product extensions are landing well.
France: installations sustained, strong ARR
ARR reached £9.94 million (+15%), with subscription and customer bases up 14% and 7% respectively. The French business has held onto the elevated installation pace from 2024 while progressing the 4G upgrade programme.
USA: incremental, but more to do
ARR increased to £3.28 million (+6%), with customer numbers up 4% and new customers up 17%. Management says further improvement is targeted for 2026. The subscription base was flat (+0%), so conversion and retention gains are the obvious levers.
Italy and Spain: the growth standouts
Italy posted ARR of £1.96 million (+43%), with subscriptions up 42% and new customers up 44%. Spain delivered ARR of £1.27 million (+35%) and 21% growth in new subscriptions. These are smaller bases but the momentum is excellent.
Germany: mixed signals
ARR of £0.86 million grew 26% and the customer base increased 24%, but new subscriptions fell 10% to 2,808. Quartix plans to invest in indirect channels across Italy, Spain and Germany in 2026 – sensible given the divergence in performance.
Product progress: new hardware, faster software, and camera integration
Technically, 2025 was busy. The new TCSV17 telematics core has fully replaced the previous generation. The plug-in, user-installed TCSV18 for UK/Europe has completed type approval and is entering production; a US derivative is at prototype stage with type testing anticipated in Q1 2026.
On software, Quartix has standardised its web and mobile code base and will release a beta of the new web UI at the end of January, with the next-gen mobile app planned for this year. The connected dashcam – launched in 2024 – is fully integrated into reporting, capturing footage automatically via accelerometer triggers or user requests to aid training and insurance claims.
Opinion: these steps should reduce unit cost, improve performance and increase the scope for upsell – all tailwinds for ARR and NRR in 2026.
4G upgrades and the UK 2G sunset: manageable and on track
France’s 4G upgrade is well advanced: about 18,000 of the original 50,000 units remain, with completion targeted by end-2026. Two-thirds of the remaining units are user-installed and were deliberately deferred pending TCSV18 availability and network timing.
In the UK, a key supplier now expects the 2G sunset to start in 2029 (previously not before 2030). Thanks to contractual support and plans to accelerate natural replacements, Quartix does not anticipate a material or exceptional impact on reported results. That should reassure investors about upgrade cost risk.
Dividend simplification and cash discipline
Quartix intends to consolidate its ordinary and supplementary dividends into a single ordinary dividend. It expects to recommend a final dividend of 7.5 pence, taking the total ordinary dividend for the year to 10 pence per share, subject to approval at the AGM and adoption of the new policy.
Opinion: a single-stream dividend is cleaner and aligns with a predictable, cash-generative subscription model. The cash balance of £5.6 million, delivered alongside the upgrade spend and tax prepayment, underpins this confidence.
FRC reporting review: optics, not cash
The Financial Reporting Council is reviewing Quartix’s treatment of tracking systems and associated costs. Currently, these are capitalised under IFRS 15 as contract cost assets and amortised over the initial contract period (about 20 months). The discussion is whether they should instead be treated under IAS 16 and depreciated over the longer useful life.
Crucially, Quartix says there would be no impact on revenue or free cashflow. However, adjusted EBITDA could be affected if accounting policies change. Investors should be prepared for potential restatements that alter the P&L profile without touching cash.
What I’m watching in 2026
- ARR and NRR momentum – can the dashcam upsell and new UI sustain the 2025 step-up?
- US execution – moving beyond incremental growth to broaden the subscription base.
- Italy and Spain – maintaining high growth while building out indirect channels.
- Germany – reversing the dip in new subscriptions.
- FRC outcome – clarity on accounting treatment and any non-cash P&L impacts.
- 4G/2G transitions – continued on-time delivery with no material surprises.
Bottom line
This is a strong update: a beat on revenue and EBITDA, cashflow ahead of expectations, faster ARR growth, and improved retention. Product and platform upgrades look commercially relevant, not just cosmetic. The FRC review is a watch item for reported EBITDA, but not for cash.
Overall, Quartix exits 2025 with momentum and a cleaner dividend policy, setting the stage for further growth in 2026.
