KRM22 (AIM:KRM), the AIM-listed technology and software investment company focused on risk management for capital markets, said annual recurring revenue (ARR) rose to £7.9m at the end of June, up from £7.6m at the end of 2025.
The Company expects to report interim results in September showing total revenue of £3.8m for the six months to 30 June, against £3.7m a year earlier, with adjusted EBITDA of £0.2m, down from £0.3m in the prior-year period. Cash stood at £4.7m at the half-year end, down from £5.2m at the close of 2025.
Net new ARR of £0.3m included the first sale of its Margin-as-a-Service module, generating £0.1m, alongside £0.1m from its Trading Technologies surveillance partnership, partially offset by £0.1m of churn after a single institutional client cancelled its Surveillance Manager subscription.
KRM22 said sales pipeline conversion had slowed due to increased market volatility, extended vendor onboarding and internal governance processes, though demand and pipeline quality remained strong.
The company also flagged a new partnership with Sigma AI to add news sentiment analytics to its risk platform, and eight new hires across revenue, technology, product and client services teams, with further recruitment planned for the second half.
"With continued growth in ARR, both through direct sales and the partnership with Trading Technologies, a strong sales pipeline and investment across our people, applications and market presence, we look forward to the second half of the year with a clear focus and confidence on achieving market forecasts," said chief executive Dan Carter.
News Intelligence what this means for the company
KRM22 grew ARR to £7.9m in H1 despite acknowledging slower sales pipeline conversion from market volatility and internal process delays, and management reaffirmed full-year guidance. The company added new revenue streams (Margin-as-a-Service, Trading Technologies partnership) but offset gains with £0.1m churn from a single client cancellation, while cash declined £0.5m to £4.7m and adjusted EBITDA halved year-on-year to £0.2m.
ARR growth of 3.9% (£0.3m net new) is modest relative to the £0.5m cash burn in the half, and the 50% drop in adjusted EBITDA signals margin pressure despite revenue stability. Management's confidence in hitting full-year forecasts rests on pipeline conversion accelerating in H2, but it also noted headwinds including vendor onboarding and governance delays.
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