Aptitude Software Group (LSE:APTD), the AI-native Finance ERP software provider, reported AI Autonomous Finance annual recurring revenue (ARR) growth of 12% year-on-year to £20.1 million for the six months ended 30 June, driven by its Fynapse platform.
Fynapse contributed £4.9 million of that ARR, up 85% from £2.6 million a year earlier, and now carries £14.2 million of contracted future revenue from 1 July.
Total revenue fell 12%, or £4.0 million, year-on-year, though operating profit held resilient at £5.1 million (H1 2025: £4.9 million), lifting the operating margin to 17.8% from 14.9% as the group's shift to a SaaS model delivered cost efficiencies.
Recurring revenue rose to 88.1% of total revenue, from 81.5% a year earlier, while total ARR of £49.9 million slipped from £50.8 million, largely reflecting a planned reduction in Assure, the group's solution management services.
The company held cash of £21.1 million and net cash of £15.7 million at period end, after returning £5.4 million to shareholders via buybacks over the past 12 months, including £2.6 million in the first half.
On its strategic review, Aptitude confirmed it received multiple non-binding proposals from trade and private equity parties, and is continuing discussions with certain bidders over a potential cash offer for the whole company, with talks "more advanced" with one party.
Separate proposals to acquire its eSuite and IFRS Rules compliance engines are not currently being actively progressed.
Net retention rate fell to 95% from 101%, which the company attributed to elevated churn in the legacy product portfolio during the second half of 2025 and first quarter of 2026.
"H1 2026 marked further progress in Aptitude's transformation, with our largest ever Fynapse win and a pipeline that has strengthened in both quality and quantity," said chief executive Alex Curran, adding that discussions with bidders continue and investors will be updated "in due course".
News Intelligence what this means for the company
Aptitude Software reported 12% growth in AI Autonomous Finance ARR to £20.1m for H1 2026, with Fynapse—its flagship platform—surging 85% to £4.9m ARR and now carrying £14.2m in contracted future revenue. The company is simultaneously in advanced sale discussions with one bidder, creating uncertainty about its independent future even as its core growth engine accelerates. Operating margin improved to 17.8% from 14.9% as the shift to SaaS delivered cost efficiencies, but total revenue fell 12% and net retention slipped to 95% from 101%, signaling churn in legacy products.
Fynapse's trajectory—85% ARR growth and a three-year contract worth £4.2m signed in June—demonstrates the company's ability to win and scale in AI-native finance software. However, the sale process introduces binary risk: a successful exit at a premium would reward shareholders, but ongoing uncertainty may suppress the stock until terms are announced or talks conclude. The deteriorating net retention rate and 12% total revenue decline suggest the legacy portfolio is in structural decline, making Fynapse's growth the only offset.
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