Pulsar Group Plc Reports 10% Revenue Increase and 39% Boost in Adjusted EBITDA in H1 2026 Interim Results

Enterprise Segment Drives Record Revenue and Margin Growth

Pulsar Group reported total revenue of a333.0 million for H1 2026, a 10% increase from a330.1 million in the same period the previous year. Recurring revenue accounted for 97% of total revenue, up from 95% in H1 2025, underscoring revenue stability. On a constant currency basis, revenue grew by a32.1 million, with a a31.5 million positive foreign exchange impact mainly from stronger Australian and US dollars.

Adjusted EBITDA surged 39% to a35.1 million compared to a33.6 million in H1 2025, with margins improving from 12% to 15%. This margin expansion resulted from revenue growth and cost-cutting measures implemented in fiscal 2025, which reduced the annualised cost base by over a37.0 million. Recurring administrative expenses decreased year-on-year to a316.4 million from a317.1 million, reflecting enhanced operating leverage from the restructured cost base.

ARR Growth Strong in EMEA & North America; APAC Stable

ARR increased by a31.2 million on a constant currency basis to a367.2 million as of 31 May 2026. Reported ARR growth was a32.7 million, boosted by a a31.5 million foreign exchange tailwind. The EMEA and North America regions, identified as the main growth drivers, saw ARR rise by a31.4 million constant currency to a335.5 million, supported by strong demand from large organisations adopting Pulsar’s platforms for critical marketing and communications intelligence.

In APAC, ARR remained largely flat on a constant currency basis, declining slightly by a30.2 million to a331.7 million, although reported ARR benefited from a a31.4 million favourable AUD:GBP exchange rate movement. Despite macroeconomic uncertainties impacting the mid-market, APAC showed continued strong demand for Pulsar’s AI-enhanced capabilities. The company secured 15 new named clients in APAC during the period, including Gilead Sciences, Westpac New Zealand, Nine Entertainment, and Paramount Pictures Australia, demonstrating ongoing market penetration despite currency headwinds.

Significant Enterprise Client Wins Bolster Growth

Pulsar Group achieved notable new client acquisitions in both regions during H1 2026, with enterprise-weighted growth especially prominent in EMEA and North America. New clients include multinational and publicly listed companies such as Coca-Cola, Diageo, H&M, International Airlines Group (IAG), Investec, Manchester United Football Club, Omnicom, and Urban Outfitters. These acquisitions reflect increasing adoption of Pulsar’s platforms among Fortune 500 and FTSE-listed firms seeking real-time audience intelligence for strategic decision-making.

Additionally, the company expanded its client base in the non-profit and public sectors, adding organisations like the Samaritans, Food Standards Agency, Greenpeace, and Greene King. This diverse client mix highlights the broad applicability of Pulsar’s audience intelligence solutions. The company emphasized a strategic focus on enterprise clients where differentiation, revenue quality, and longevity are strongest, shifting away from broader mid-market pursuits amid challenging macroeconomic conditions.

Launch of AI-Native Products Enhances Market Position

During H1 2026, Pulsar accelerated the rollout of Lumina, its AI-native product suite designed specifically for PR and communications professionals. Lumina offers narrative intelligence, real-time monitoring, and automated media analysis workflows. Built on AI foundations rather than retrofitted to legacy systems, Lumina prioritizes utility, explainability, and accountability to empower users with confident analysis.

Following the period end, Pulsar introduced Saga, described as the first autonomous research agent for social intelligence. Saga continuously analyzes client data to proactively deliver completed research, complementing Pulsar’s existing video intelligence and insights capabilities. These AI-driven product launches underscore the company’s belief that future marketing and communications success will depend on strategic AI adoption. Early market traction has been reported, although specific uptake figures were not disclosed.

Cost Base Reduction and Operating Model Transformation Continue

Pulsar Group progressed its operating model transformation in H1 2026, building on prior cost reduction efforts from fiscal 2025. Recurring administrative expenses declined by a30.7 million reported to a316.4 million, with a a31.1 million reduction on a constant currency basis. Non-recurring restructuring costs fell by a30.9 million to a32.7 million, reflecting timing differences from prior-year exit-related expenses.

The company anticipates further cost base reductions by fiscal year-end 2026, primarily through automation initiatives. The Board expects these savings to enhance operating leverage and support sustainable margin growth. Capitalized development costs dropped to a32.7 million from a33.0 million in H1 2025. Improved Adjusted EBITDA combined with lower non-recurring and capitalized development expenses resulted in a a32.7 million improvement in Adjusted EBITDA net of these items, reaching a3(0.3) million compared to a3(3.0) million the previous year.

Improved Cash Generation and Long-Term Refinancing Secured

Pulsar Group’s operating cash flow strengthened significantly in H1 2026, with net cash inflow from operations rising to a33.3 million from a31.8 million in H1 2025, an 83% increase year-on-year. Operating cash inflow before working capital changes increased to a32.5 million from near breakeven in H1 2025, reflecting improved profitability. The net debt position at period end was a36.0 million, broadly stable versus a35.6 million at 30 November 2025, excluding one-off refinancing fees paid during the half.

On 30 April 2026, Pulsar completed a long-term refinancing arrangement, securing a38.0 million in three-year facilities from HSBC Innovation Banking. This comprised a a36.0 million amortizing and non-amortizing loan plus a a32.0 million revolving credit facility, replacing the previous a33.0 million loan and a33.0 million overdraft. These facilities provide greater financial flexibility and headroom to support the company’s next growth phase. The Board expects improved cash generation to enable net debt reduction in H2 2026.

Working Capital and Deferred Revenue Growth Indicate Strong Momentum

Contract liabilities, representing invoiced but unrecognized revenue, stood at a321.1 million as of 31 May 2026, up from a317.6 million at 30 November 2025, reflecting robust invoicing activity. Trade receivables increased to a313.7 million from a310.6 million. This working capital timing effect indicates strong commercial momentum, though cash collections and revenue recognition were not fully aligned at period end. The Board expects further cash generation in H2 as invoiced amounts are collected and recognized.

The rise in contract liabilities signals strong client commitments to multi-period subscription contracts, enhancing forward revenue visibility and underscoring the structural strength of the SaaS model. Investors will likely monitor the conversion of this deferred revenue into cash collections and cash conversion rates in future periods, critical for assessing profitability sustainability and shareholder returns.

Macroeconomic Challenges and Mid-Market Demand Softness

The company acknowledged ongoing macroeconomic challenges, including geopolitical uncertainty, constrained marketing budgets, and cautious customer spending. The Chairman noted strong enterprise demand but softer mid-market activity in H1 2026. In response, Pulsar has focused commercial efforts on enterprise clients where differentiation, revenue quality, and retention are strongest, shifting away from mid-market volume growth amid economic pressures.

This strategic focus reflects a deliberate emphasis on higher-quality enterprise opportunities that are more resilient to budget cuts. The company’s assertion that enterprise clients increasingly standardize on its platforms for mission-critical intelligence suggests the offering’s differentiation withstands top-level budget scrutiny even as smaller departments reduce spending. Investors should watch whether this approach sustains ARR growth and margin expansion or conceals broader market softness.

Foreign Exchange Impact and Constant Currency Analysis

Currency fluctuations materially influenced Pulsar Group’s reported H1 2026 results. The AUD:GBP exchange rate shifted from 2.0213 to 1.8728, strengthening the Australian dollar against sterling. Along with US dollar strength, this generated a a31.5 million positive foreign exchange benefit on reported ARR. On a constant currency basis, ARR growth was a31.2 million, significantly lower than the reported a32.7 million, highlighting the importance of currency tailwinds.

Both reported revenue and costs benefited from favorable exchange rates, with underlying cost reductions more pronounced when adjusted for currency. Recurring staff and operating expenses fell by around a31.1 million constant currency. For investors evaluating growth, the distinction between reported and constant currency figures is significant; reported results appear stronger, but underlying operational growth is more modest, raising questions about growth sustainability absent currency benefits.

Board Outlook and Strategic Priorities

The Board expressed confidence in Pulsar Group’s prospects for the remainder of 2026 and beyond, noting trading remains in line with expectations. The Chairman highlighted the mission-critical nature of the company’s intelligence solutions, leadership in AI-driven products, and improved operating leverage from cost restructuring as key strengths for navigating ongoing macroeconomic uncertainty. The Board outlined three strategic priorities: accelerating enterprise-led ARR growth, further cost base reduction, and continued delivery of differentiated AI products.

However, the company did not provide specific quantitative guidance for H2 2026 or full-year results. The Board’s qualitative confidence and expectation alignment indicate cautious forward visibility consistent with the macroeconomic environment. Investors should note the absence of formal guidance, mid-market softness, and foreign exchange dependency in H1 results, suggesting limited predictability. Nonetheless, improved cash generation and refinancing provide operational flexibility and potential for debt reduction, supporting future growth investments or shareholder returns.