Quartix Technologies (AIM:QTX) said full-year revenue is expected to be in line with current market expectations, with adjusted profit before tax for the year set to come in modestly ahead, in a trading statement covering the nine months to 30 September.
The subscription-based vehicle-tracking software provider attributed the profit upgrade to cost savings identified at the time of its interim results, with reinvestment of £0.2m now deferred into 2027. Annualised recurring revenue (ARR), the company's principal forward-looking growth measure, rose £3m during the period to £39.7m, up 11% on a trailing 12-month basis from £35.8m a year earlier.
Quartix flagged particularly strong momentum in the third quarter alone, with £0.9m of ARR added in the three months to 30 September.
Net revenue retention held flat at 97.3% on a trailing 12-month basis, a metric the company called a priority to improve across all territories.
The customer base grew 6% to 33,873 and the total subscription base rose 7% to 347,702 on a trailing 12-month basis, with Italy, Spain and Germany posting the fastest ARR growth of 31%, 26% and 22% respectively, while the US was flat.
Following dividend payments totalling £4.9m during the period, Quartix held cash of £5.3m at 30 September and no debt, with free cash flow of approximately £4.7m after tax payments of £2.3m, including £1.1m paid to HMRC tied to the accounting policy change detailed in its 2025 annual report.
"This sustained double-digit growth, when combined with very strong cash generation, is particularly encouraging," said Andy Walters, Executive Chairman, adding that the company's new video telematics product is gaining traction in the UK ahead of a planned launch in Continental Europe.