PCI Pal reports 25% ARR growth, plans increased investment for FY26

Published 29/07/2025, 07:04
PCI Pal reports 25% ARR growth, plans increased investment for FY26

LONDON - PCI-PAL PLC (LON:PCIPP) (AIM:PCIP), a cloud provider of secure payment solutions for business communications, reported a 25% increase in Annual Recurring Revenue (ARR) to £19.3 million for fiscal year 2025, according to a press release statement issued Tuesday.

The company stated that revenue and adjusted profit before tax are in line with market expectations, with revenue reaching £22.5 million, representing a 25% year-over-year increase from £18.0 million in FY24.

PCI Pal reported its Contracted Annual Recurring Revenue (CARR) grew 16% to £22.2 million, while Net Revenue Retention improved to 104%, up from 102% the previous year. The company’s cash position stood at £3.9 million at year-end, down 9% from £4.3 million a year earlier.

For fiscal year 2026, PCI Pal projects revenue between £23.5 million and £24 million, below current market consensus of approximately £25.5 million. The company attributed this outlook to the weakening U.S. dollar and timing of new business wins.

The firm announced it has expanded its partner relationships, including a previously disclosed partnership with RingCentral (NYSE:RNG) and a new agreement with an unnamed billion-dollar business communications company.

As part of its strategic plan, PCI Pal intends to increase investment in marketing, product marketing, and engineering by approximately £1.5 million, primarily in FY26, to support long-term organic growth targets of 18-20% in ARR through FY27 and beyond.

The company also announced the launch of a new AI-powered fraud risk scoring product, marking its first step into expanding its product portfolio.

PCI Pal recently appointed a new U.S.-based Chief Marketing Officer and completed a review of its three-year plan following the resolution of patent litigation with a competitor in June 2024 and the appointment of a new CFO in October 2024.

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