Diaceutics (AIM:DXRX), the AIM-listed technology and data provider to the pharma and biotech industry, reported revenue of £17.5 million for the first half of 2026, up 22% at constant currency from £14.6 million a year earlier.
It comes alongside a sharp rise in recurring revenue that gives the company greater confidence in its full-year outlook.
The company also highlighted that Annual Recurring Revenue (ARR) climbed 75% to £28.8 million, while net revenue retention rose to 146% and gross churn fell from 19% to 9%. The contracted order book grew 38% to £43.7 million, with £15.7 million already contracted for delivery in the second half, giving what the company called 91% visibility on hitting median analyst consensus revenue estimates of £46.7 million for the full year.
Gross margin is expected to reach 87%, up from 83% a year earlier, with Adjusted EBITDA expected at £1.1 million, against £0.1 million in the prior first half.
"We are growing revenues, increasing recurring revenue, retaining and expanding customers, and building our order book to record levels. That combination gives me strong confidence in delivery for FY 2026 and in our continued ability to create significant long-term shareholder value," said chief executive Ryan Keeling.
Diaceutics now supports 99 therapeutic brands across 54 customers, up from 95 brands and 53 customers at the end of December, and works with 18 of the top 20 global pharma companies.
Cash stood at £8.1 million at 30 June, up from £7.3 million at the end of December, with no debt and an undrawn £2 million facility.
The company expects to announce interim results in late September.
News Intelligence what this means for the company
Diaceutics reported H1 2026 revenue of £17.5m (up 22% at constant currency) with ARR surging 75% to £28.8m and gross churn halving to 9%, underpinned by net revenue retention of 146%. The company now has £15.7m of the £43.7m order book already contracted for H2 delivery, giving it 91% visibility to its full-year £46.7m consensus target—a material shift from the prior year's ARR of £20m, signalling both customer stickiness and accelerating expansion within existing accounts.
The 75% ARR growth and 146% net revenue retention demonstrate strong product-market fit and upsell momentum within a recurring-revenue model, materially improving earnings visibility. However, the company remains pre-profitability on a statutory basis (£0.3m PBT in FY 2025), and while H1 Adjusted EBITDA is expected at £1.1m, cash generation remains modest relative to the £8.1m balance—execution risk on margin expansion and customer concentration warrant monitoring.
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