A flat finish to FY25 for Eagle Eye

London-HQ’d digital promotions and loyalty specialist, Eagle Eye saw its FY25 revenue increase by just 1% yoy to £48.2m (FY24: 11%). The slowdown in top line growth, which started during the second half of the prior year (see here), continued through latest fiscal with hoh sales remaining largely flat. Tight cost discipline during the twelve months ended 30th June, however, lifted the company’s adjusted EBITDA by 9% yoy to £12.2m generating a margin of 25% (FY24: 24%).

The placid surface of the results belies the extent of changes afoot at Eagle Eye as it transitions to a platform-centric business. The company’s strategic shift to a Systems Integrator model led to 27% fall in its professional services turnover to c.£8m in FY25. This was, however, fully offset by an 11% increase in SaaS and transaction revenues to £40.2m with six new blue-chip customers won in H2 including Galeries Lafayette in France, Viva Energy Australia and Metro Singapore.

Eagle Eye’s prospects were, however, dealt a significant blow in the final month of the financial year when it received notification by Neptune Retail Solutions (NRS) of the termination of a contract with an annual value of between £9m and £10m in revenue with effect from 2 August 2025. Cost reduction initiatives in response to the lost contract have been launched and the company is confident in maintaining a double-digit adjusted EBITDA margin for FY26.

The impact of the NRS loss will be further softened by the company’s acquisition at the end of June of Promotional Payments Solutions Limited. The Dublin-based SaaS provider specialises in digital promotions and loyalty solutions for enterprise retailers and consumer packaged goods companies. In 2024 it generated turnover of €3.96m and EBITA of €0.9m. Eagle Eye also believes that the OEM agreement signed in January with one of the world's largest enterprise software vendors (see here) will both begin to bear fruit in H126 and drive substantial revenue generation expected from FY27.

The company’s optimism in its outlook is yet to be shared by investors. Over the last twelve months, Eagle’s stock price has more than halved. This divergence in views has led the company to announce the commencement of a share buyback programme to repurchase ordinary shares for up to a maximum amount of £1.0 million. As we have noted before, the company has a clear set of focus areas to scale the business. What is now needed is more tangible evidence of Eagle Eye’s ability to execute successfully its strategy at pace.

Posted by: Duncan Aitchison at 09:41

Tags: results   saas   software   ecommerce   acquistion   customer+experience