Fadel Partners (LSE:FADL), a global provider of AI-driven brand compliance and licensing software, reported revenue of $4.8 million for the six months ended 30 June, up 4% from $4.7 million a year earlier.
License and support revenue rose 25% to $3.1 million, reflecting new customer wins and expansions secured in the second half of 2025.
Annual Recurring Revenue increased 11% year-on-year to $9.4 million, with net revenue retention of 104% over the 12 months to 30 June.
Services revenue fell 19% to $1.8 million, an anticipated decline that the license growth more than offset.
Gross margin improved 12 percentage points to 61%, up from 49%, as the revenue mix shifted toward higher-margin licensing and the Group cut services delivery costs.
Operating expenses fell 15% to $4.1 million, narrowing the adjusted EBITDA loss by 53% to $1.1 million from $2.4 million.
"These results demonstrate the benefits of the actions taken during 2025 to simplify the Group's operating structure, reduce its cost base and focus resources on higher-quality recurring software revenue," said chief executive Tarek Fadel.
Cash and cash equivalents stood at $1.9 million at period end, up from $1.6 million a year earlier, with an undrawn $1 million Bank of America credit facility renewed through 31 May 2027.
Fadel added five new customers in the period, including Wilson Sports, The Royal Mint and Bleacher Report, and expanded relationships with L'Oréal, Philip Morris and The Coca-Cola Company.
Management expects full-year revenue, adjusted EBITDA loss and cash to be in line with market expectations.
