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As trailed in their April trading update, ActiveOps delivered robust FY25 results (FYE 31st March), with revenue growing 14% to £30.5m and ARR increasing 13% to £28.4m. The results emphasise how the company's Decision Intelligence platform resonates in an increasingly complex business environment. Organisational nervousness is creating significant opportunities for the software company.
Speaking to Chair Richard Jeffery this morning, he noted, "Significant growth across all regions against the backdrop of general nervousness about the world; ActiveOps can be positioned as a control system, and at certain times, people get more paranoid about control." Growth was strong across regions, with the UK market—representing an estimated 25% of total revenues—growing its ARR by an estimated 8%. Meanwhile, North America's revenues surged 22% and other regions also posted strong gains.
The company's value proposition addresses several critical barriers facing enterprises, as highlighted in TechMarketView's research: a lack of confidence in the accuracy and timeliness of data to make key strategic decisions, as well as in their ability to extract value from AI and other emerging technology investments, and the challenge of leveraging fragmented data across systems. Jeffery stated: "Customers' confidence in extracting benefit from robotics, workflow, AI—it's shocking. ActiveOps helps improve confidence to invest in those things."
Central to this is ActiveOps' ability to bridge enterprise workflow systems (like Pega) and human capital management (like Workday or Salesforce) platforms. By joining these data sources, the company is also able to provide the foundational intelligence needed for effective AI and agentic AI deployment. This capability is becoming increasingly sophisticated, where ActiveOps can "attach an ROI to most features," making upgrade decisions straightforward for customers despite long enterprise sales cycles. The result in this period was that 34% of customers increased ARR by 20% or more.
The company's growth trajectory reflects strategic investments in sales and marketing, which increased to 21% of revenue from 18% previously. This has driven new logo wins to nine customers versus three in FY24, with three additional wins already secured in Q1 FY26. However, margins remained flat (EBITDA of £2.5m) as management prioritises growth over profitability. Jeffery emphasises that ActiveOps is still primarily a growth stock and will be targeting 30% growth with a 10% margin over the medium term.
The acquisition of Enlighten (announced earlier this week) for up to £15.9m represents a significant strategic move, adding approximately $11m ARR, 24 blue chip customers, and 90 employees, and strengthening positions in Asia Pac and North America. Beyond scale benefits, the deal brings complementary capabilities in operational excellence and creates significant cross-selling opportunities. Management expects 15%+ EPS accretion by FY27, with operational efficiencies emerging as the companies integrate. ActiveOps' strong cash position of £20.6m (up 17%) provides flexibility for continued investment while maintaining a debt-free balance sheet.
Looking ahead, the convergence of enterprise anxiety around technology adoption and ActiveOps' proven ability to provide measurable ROI from data intelligence positions the company well. As Jeffery concluded, "The world of work is becoming increasingly complex—your resilience and agility are hugely dependent on the quality of decision intelligence." This suggests considerable runway ahead.
Posted by: Georgina O'Toole at 09:59
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