FD Technologies plc (LON:FDP) has announced its results for the 12 months ended 28 February 2025.
Strong performance in FY25; prioritising efficient growth in FY26
| Year to February (£m)1 | FY25 | FY24 | YoY (+/-) |
| ACV2 added | 18.0 | 13.5 | +33% |
| ARR3 | 81.8 | 72.5 | +13% |
| Revenue | 80.7 | 79.1 | +2% |
| Loss before tax from continuing operations | (29.1) | (20.3) | NM |
| Net cash/(debt)4 | 55.1 | (18.5) | NM |
| Reported diluted loss per share (p) | (94.2)p | (74.9)p | NM |
| Adjusted performance measures | |||
| Adj. EBITDA5 | 6.5 | 5.1 | +27% |
| Cash EBITDA6 | (14.6) | (18.8) | NM |
| Adj. diluted loss per share (p) | (48.9)p | (39.5)p | NM |
Highlights
| = | KX continued to execute well in the second half of the year, delivering FY bookings growth at the top end of our guidance range and ahead of consensus7 expectations, with £18.0 million annual ACV (FY24: £13.5 million), +33 per cent YoY. |
| = | KX achieved annual recurring revenue +13 per cent to £81.8 million (FY24: £72.5 million), a significant milestone exceeding $100 million8 for the first time. |
| = | As flagged in our March trading update, Cash EBITDA was ahead of previous guidance and above the top end of consensus expectations with a loss of £14.6 million (FY24: loss of £18.8 million). |
| = | Bookings growth during the period was driven by expansion with existing financial services customers, and we expanded our market share in high-tech semiconductor manufacturing. In addition, we secured new business among tier 2 hedge funds and investment banks, as well as in the aerospace and defence sector. |
| = | We divested MRP9 and First Derivative, and subsequently returned £120 million to shareholders, closing the year with £55 million net cash and no debt. |
Recommended cash offer for FD Technologies plc
On 8 May 2025, the Board unanimously recommended TA’s cash offer for the business (under Kairos Bidco), which values FD Technologies at £24.50 per share or £570 million.
Outlook
In FY26, we expect ARR growth of at least 20 per cent and continue to target positive Cash EBITDA in FY27.
Seamus Keating, Group CEO of FD Technologies, commented:
“We made significant strategic and operational progress in FY25. With accelerating ARR growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution. Meanwhile, our strategic repositioning of the Group during the period has unlocked significant shareholder value.
1 All figures are only for KX’s continuing operations and exclude the divested First Derivative business.
2 Annual contract value: the sum of the value of each customer contract signed during the year divided by the number of years in each contract.
3 Annual recurring revenue: the total value of recurring software revenue expected to be recognised over the next 12 months, on the final day of the reporting period.
4 Excluding lease obligations.
5 Earnings before interest, tax, depreciation and amortisation adjusted to exclude share-based payments, capitalised R&D, and exceptional items.
6 Earnings before interest, tax, depreciation and amortisation adjusted to exclude share-based payments and exceptional items.
7 On 28 February 2025, the Company-compiled analyst mean consensus estimates indicated £16.7 million in ACV added during the period (range £16.0-17.0 million), £82.8 million in ARR (range £81.2-84.5 million), and an £18.5 million Cash EBITDA loss (range of £16.3-20.1 million loss). The consensus included estimates from six analysts.
8 £81.8 million ARR translated into US dollars was $103.1 million, using the US$/£ exchange rate of 1.26 on 28 February 2025.
9 The Group retains a 49 per cent associate investment in Pharosiq, which resulted from the subsequent merger of MRP with CONTENTgine.
Results presentation
An analyst and investor briefing to discuss the results will be held at 09:30 BST. This is only accessible via a live webcast and replay facility. To register to access the webcast, please follow the following link:
https://sparklive.lseg.com/FirstDerivatives/events/221e4977-5ef8-4faa-a1da-3a58167a524e/fd-technology-plc-s-fy25-results
Chief Executive’s review
A year of significant strategic progress
In FY25, we separated the Group’s three businesses, divesting MRP and First Derivative. Henceforth, KX is the Group’s sole continuing operation.
KX is a high-growth subscription software business. It operates in advanced data analytics and AI and has an industry-leading technology platform for managing and analysing historical and real-time structured and unstructured data at any scale.
As these results demonstrate, momentum is accelerating in KX bookings and ARR growth, and the business is on course to deliver sustainable operating leverage over the long term, with cash EBITDA reaching breakeven in FY27.
Following the completion of the disposal of First Derivative for an enterprise value of £230 million in December 2024, we returned £120 million to shareholders via a tender offer in January 2025, reflecting our commitment to maintaining an efficient balance sheet and maximising shareholder value.
Recommended cash offer for FD Technologies plc
On 8 May 2025, the Board unanimously recommended TA’s cash offer for the business (under Kairos Bidco), which values FD Technologies at £24.50 per share or £570 million. I believe TA is a valuable partner for the Company with a shared commitment to enhancing KX’s business and capitalising on the longer-term opportunity in the data and analytics software market.
TA has significant experience supporting in high-growth global software businesses, and we believe it is a suitable and appropriate partner for our employees, customers, and other stakeholders.
FY25 business performance
In FY25, KX delivered a strong financial performance, as our strategic focus on delivering advanced data and analytics capabilities into high-growth sectors yielded significant wins across our core verticals. We generated an incremental £18.0 million in annual contract value (ACV) at the top end of our guidance range of £16-18 million. Annual recurring revenue (ARR) increased by 13 per cent to £81.8 million (FY24: £72.5 million); this marks a strategic milestone, with ARR surpassing $100 million* for the first time. Reported revenue increased by 2 per cent to £80.7 million (FY24: £79.1 million). KX reported an operating loss of £(23.4) million (FY24: £(15.6) million, with an adjusted EBITDA of £6.5 million (FY24: £5.1 million).
We continue to see strong interest and adoption of our KX Insights products, and we are continually enhancing platform accessibility for developers and analysts. Momentum is building for our new AI capabilities among existing customers and new logos.
In the year, 35 per cent of ACV bookings came from industries outside financial services, with notable contributions from aerospace and defence, and industrial IoT.
Strategic highlights
Our mission is to transform industries by enabling organisations to harness high-frequency time-series data, unstructured data, and AI-driven models with unparalleled speed, accuracy, and efficiency.
To achieve this ambition, we have a product portfolio strategy that leverages our differentiation by offering a unified, real-time, time-series AI data platform. We also invest in industry-focused product offerings, targeting further growth in financial services and additional opportunities in industries such as aerospace, defence, and industrial IoT.
Furthermore, we prioritise an efficient go-to-market strategy, focusing on repeatable use cases, primarily through a direct sales model, while also collaborating with strategic partners to generate awareness and demand.
Among our key strategic achievements in FY25 were the following:
| = | In financial services, we achieved significant expansion bookings with existing customers. |
| = | We achieved notable wins with cloud service partners, enabling customers to deploy KX solutions seamlessly on leading cloud platforms. |
| = | We participated in several initiatives with NVIDIA to support customers in building their advanced AI capabilities. |
| = | We also secured significant new logos at global semiconductor companies through our collaborative partnerships with Applied Materials and Synopsys. |
Our markets
With a heritage in the financial services industry, the KX time-series AI data platform is trusted by many of the world’s top investment banks and asset managers. We have a significant global market opportunity to expand our presence with existing and new financial services customers. Our software has applications in satellite imagery analysis and signal processing in the aerospace and defence industry. Additionally, we are expanding our presence in the industrial Internet of Things (IoT), specifically for the high-tech semiconductor manufacturing sector, where our software is utilised to enhance machine production lines and improve uptime on the factory floor.
In our assessment of our current serviceable addressable market (SAM), we estimate that the opportunity in our existing markets, utilising our current products, exceeds $8 billion and is growing rapidly.
We focus on several strategic growth opportunities, including:
| = | Expanding further in financial services as customers deploy our platform across new asset classes and divisions. |
| = | Adding new customers in the financial services industry, specifically among tier-2 and tier-3 investment banks, asset managers and hedge funds. |
| = | Other focus markets, for example, the aerospace and defence industry and industrial IoT. |
| = | Through innovation to sustain our industry leadership position, develop new capabilities, and shorten time-to-value through industry accelerators. |
| = | Through building close relationships with key strategic partners. |
Priorities for FY26
We have a robust pipeline of opportunities for FY26, with a healthy mix of expansion and new logo opportunities across financial services, aerospace, defence, and industrial IoT. To execute our growth plans effectively, we prioritise our investment into the following:
| = | Accelerate our go-to-market motion: we aim to optimise our go-to-market efforts and expand customer reach in core sectors. |
| = | Further expansion in financial services: we can leverage our loyal network of evangelical users in financial services to solidify our market position further. |
| = | Innovation, driving flexibility and accessibility: enhanced functionality (PyKX, AI tools) is helping us to unlock new customer opportunities and further accelerate our go-to-market motion. |
| = | Build on the new vertical market opportunities: we continue to evaluate opportunities in regulated sectors, including aerospace and industrial applications. |
This has been a year of significant change and transition. Our business started FY25 with 2,400 employees, and today, that number has decreased to just under 600, following the sale of First Derivative, which resulted in the transfer of 1,523 colleagues to their new home at EPAM Systems Inc. In this year of transition, the Company remains deeply committed to developing a People strategy that aligns closely with that of an independent software business.
Being a responsible business is at the core of our sustainability approach. We ensure that sustainability is at the centre of the decision-making processes. We are committed to fostering a sustainable future through our dedication to the three pillars of sustainability: people, environment, and communities. These three pillars are directly linked to a range of key metrics that we measure across our business and are aligned with specific UN Sustainable Development Goals.
During the year, we successfully supported those employees transferring to new business owners, launched three KX employee resource groups (Pride, Women, and Neurodiversity), and rolled out several employee initiatives, including Culture Champions across all regions to ensure our people feel connected and part of the team.
We also deployed a new employee engagement platform, widely regarded as the industry’s gold standard, to further strengthen our employee brand, attract top talent more effectively, and reinforce our commitment to fostering an exceptional workforce.
We are committed to reducing our carbon emissions in line with the UK government’s targets and have several initiatives underway to embed carbon reduction into all aspects of our business operations, from employee travel to the use of clean energy in our offices and making sustainable choices throughout our supply chain.
Outlook
We made significant strategic and operational progress in FY25. With accelerating ARR growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution.
Our focus for FY26 is to deliver efficient growth and demonstrate progress in delivering the significant operating leverage that is a feature of our business over the long term. We will prioritise our investments to accelerate deployment, time to value and ease of use, further simplifying our product model and enhancing sales productivity.
Consequently, in FY26, we expect ARR growth of at least 20 per cent and continue to target positive Cash EBITDA in FY27.
Seamus Keating
Group Chief Executive Officer, FD Technologies plc
3 June 2025
* £81.8 million ARR restated in US dollars was $103.1 million, using the US$/£ exchange rate of 1.26 on 28 February 2025
