SKILLCAST GROUP PLC - Final results for the year ended 31 December 2025

Skillcast Group plc’s FY2025 investor update highlights strong company performance, with double-digit revenue growth, expanding margins, and a step change in profitability driven by its scalable SaaS model. Annual recurring revenue (ARR) 19% to £13.8 million, while total revenue rose 16% to £15.3 million, supported by 21% growth in high-margin subscription revenues, now representing 87% of total sales. Gross margins improved to 75.7%, and EBITDA surged than 200% to £1.5 million, reflecting operational leverage, disciplined cost control, and limited headcount growth. The group generated £3.7 million in free cash flow and ended the year with a strong net cash position of £30 million, underpinning a progressive dividend policy. Growth was driven by increased client numbers, higher average contract values, and successful upselling to enhanced and premium plans, while net revenue retention remained above 100%. Strategically, Skillcast is focused on sustaining ~20% ARR growth and improving EBITDA margins towards 20% through organic expansion, EU market penetration, product innovation, and AI integration. Management emphasised resilience in demand for compliance solutions, continued investment in AI-driven features, and a robust sales pipeline. Despite a modest slowdown in new client acquisition early in 2026, trading remains in line with expectations, supported by a growing order book, strong retention, and ongoing productivity gains, positioning the company for continued profitable growth and long-term shareholder value creation.