Quartix 2025 results: record ARR growth, fatter margins and a sharply higher dividend
Quartix Technologies has delivered a punchy set of full-year numbers for 2025. Revenue rose 12% to £35.7 million, profit before tax jumped 34% to £8.7 million and free cash flow more than doubled to £5.2 million. The headline for me is annualised recurring revenue (ARR) up 14% to £37.0 million – a record year of subscription growth that sets the tone for 2026.
The Board has proposed a final dividend of 7.50p per share, taking the total for the year to 10.0p (2024: 4.50p). Ex-dividend is 2 April 2026, with payment due on 30 April 2026.
Key numbers investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £35.7m | £31.8m | +12% |
| EBITDA | £13.2m | £10.7m | +23% |
| Adjusted EBIT | £8.8m | £6.4m | +38% |
| Profit before tax | £8.7m | £6.5m | +34% |
| Profit for the year | £6.4m | £5.1m | +25% |
| Diluted EPS | 13.17p | 10.51p | +25% |
| Free cash flow | £5.2m | £2.6m | +102% |
| ARR (constant currency) | £37.0m | £32.5m | +14% |
| Net cash | £5.6m | £3.1m | n/a |
| Final dividend | 7.50p | 3.00p | +150% |
Why ARR and NRR matter here
ARR is the annualised value of contracted subscription revenue at year end. It is the best forward indicator for future revenue in a subscription model. Quartix’s ARR rose by £4.5 million to £37.0 million, with growth accelerating by 25% versus 2024’s increase.
Net Revenue Retention (NRR) of 98.1% (2024: 95.7%) shows the existing customer base is holding up better. NRR tracks what you keep from last year’s subscriptions after churn and downgrades, plus any upsells or price rises. Around 4.2% price indexation helped, and management is targeting 100%+ over time. Sub-100% means there is still some attrition to claw back, but the direction is clearly improving.
Subscription engine still humming
- New fleet subscriptions: 79,576, up 7%.
- Total subscription base: 333,922 vehicles, up 11%.
- Customer base: 32,942, up 9%, with 7,501 new customers acquired.
- Fleet invoiced recurring revenue: £34.4 million, up 13%.
Gross margin expanded to 73.2% (2024: 71.6%) as newer 4G-capable devices became cheaper to manufacture. That, plus overhead discipline, lifted operating margin to 24.3%.
Where growth came from: UK strong, Southern Europe accelerating
Geographically, the mix is getting healthier. 50% of the subscription base is now outside the UK, and 44% of Group revenue is generated overseas.
- UK and Ireland: ARR £19.65 million, up 11%. The connected dashboard camera upsell made a notable contribution.
- France: ARR £9.94 million, up 15%, with high installation volumes maintained.
- Italy and Spain: standouts, with ARR up 43% to £1.96 million in Italy and up 35% to £1.27 million in Spain. New customer acquisition here rose 44% and 13% respectively.
- Germany: ARR up 26% to £0.86 million, but new subscriptions fell 10% – execution needs tightening.
- USA: ARR up 6% to £3.28 million and customer base up 4%. Management says further improvement is necessary in 2026.
Cash, dividend and balance sheet: reassuringly solid
Cash generated from operations rose 23% to £12.6 million, with EBITDA-to-cash conversion of 104.6%. Despite £1.0 million of French 4G upgrade spend, £0.4 million of restructuring costs and a £0.7 million corporation tax prepayment, free cash flow still hit £5.2 million. Net cash ended the year at £5.6 million.
The dividend has been hiked to 10.0p for 2025. The company quotes a yield of 3.6% based on the 2025 closing share price, or 4.4% on the average price for the year. The stated policy is progressive, balanced against investment needs and a strong balance sheet.
Accounting policy change: what shifted and why it matters
Quartix has adopted IAS 16 for tracking units, installation and carriage costs, retrospectively restating 2024. In plain English: hardware placed with customers, which Quartix still owns and controls, is now treated as property, plant and equipment and depreciated over its life, rather than being treated mainly as a contract cost under IFRS 15.
Key takeaways:
- PPE increased to £17.0 million (2024: £15.5m) and contract cost assets reduced.
- Some revenue previously recognised as lost unit fees is now shown as gains on disposal, trimming 2024 revenue by £0.6 million in the restatement.
- Free cash flow is unchanged by the reclassification, but tax timing shifts. The 2025 effective tax rate was 26.4% and the underlying rate was 22.9%.
My view: the switch better reflects the economic reality of a device-led subscription model and improves comparability. It does not alter the cash picture.
Product and network updates: dashcams, 4G, and the 2G sunset
Product momentum continues. The TCSV17 4G tracker is in full production and the plug-in TCSV18 has completed type approval in Europe, with a US variant entering testing in Q1 2026. Dashcams – fully integrated with the web app – are proving a useful upsell driver. R&D spend was £0.8 million, all expensed.
France’s 4G upgrade is well advanced. 17,000 legacy 2G units remain at year end 2025, with an estimated remaining cost of 1.3 million Euros to complete by end-2026. In the UK, the 2G shutdown is expected to begin in 2029. Quartix plans to minimise impact by accelerating natural replacement and leveraging network partner support.
Positives, watch-outs and my take
- Positives: record ARR growth to £37.0 million; margin expansion to 73.2%; cash conversion above 100%; net cash up to £5.6 million; dividend lifted to 10.0p; NRR improved to 98.1% with 4.2% price indexation support.
- Watch-outs: NRR still below the 100% long-term goal; US and Germany need better execution; effective tax rate rose due to policy changes; 2G replacement remains an operational task, though the remaining French cost looks manageable.
Overall, this is a high-quality print. Quartix is growing subscriptions at pace, monetising add-ons like dashcams, and converting profit into cash. With ARR now ahead of 2025 revenue and half the fleet outside the UK, the setup for 2026 looks encouraging.
Outlook for 2026: what to look for next
Management describes the 2026 outlook as very encouraging. What I will track:
- ARR growth versus 2025’s £4.5 million step-up.
- NRR progress toward 100% through upgrades, price control and retention.
- US and Germany improvement in new installs and customer wins.
- Execution on the French 4G finish and early planning for the UK 2G sunset in 2029.
- Cash generation after higher marketing investment and any channel expansion.
On balance, the 2025 results support the investment case: a subscription-led, capital-light telematics business with rising margins, growing international reach and disciplined cash generation. One to keep on the watchlist for 2026 execution.
