FD Technologies flags solid full-year performance

The AIM-traded company said its KX division, which provides real-time data and AI solutions, recorded annual contract value (ACV) additions of £18m, up 33% from the prior year.

Annual recurring revenue grew 13% to £81.8m, aligning with guidance and pushing KX past the $100m annual recurring revenue threshold for the first time.

Cash EBITDA losses narrowed to £14.6m, an improvement on last year’s £18.8m loss and ahead of consensus expectations.

The firm said the performance was driven by continued adoption of KX’s data platform, particularly KDB.AI, which had gained traction in capital markets, aerospace, defence, and industrial internet-of-things (IoT) sectors.

Use cases included anomaly detection, predictive analytics, and AI-powered signal processing, with growing market demand for real-time, context-aware AI solutions.

The company highlighted the successful divestment of MRP and First Derivative, which generated £120m in proceeds returned to shareholders.

FD Technologies now held a 49% stake in the resulting merged entity, PharosIQ.

The group ended the year with £56m in net cash and no debt.

Looking ahead, the firm said it expected to grow annual recurring revenue by at least 20% in the 2026 financial year, supported by a strong pipeline of new and expansion opportunities across its key end markets.

“We made significant strategic and operational progress in the 2025 financial year,” said group chief executive officer Seamus Keating.

“With accelerating annual recurring revenue growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution.

“We restructured our business to focus solely on KX, returned £120m of value to shareholders, and ensured that KX is well capitalised to execute its strategy for growth and profitability.”

At 1057 GMT, shares in FD Technologies were up 12.39% at 1,868p.

Reporting by Josh White for Sharecast.com.