US Contract Update

Eagle Eye, a leading SaaS and AI technology company that creates digital connections enabling personalised, real-time marketing at scale, announces that the Company has been notified by Neptune Retail Solutions ("NRS") of the termination of a contract with an annual value of between £9m and £10m in revenue, for the provision of digital promotional services to a national US grocer, with effect from 2 August 2025. This follows NRS's acquisition of Quotient Technology Inc, a digital promotions and content provider, in 2023. Eagle Eye does not have any further customers that are contracted through NRS.

The contract was high margin in nature, due to its incorporation of CPG funded offers. Cost reduction programmes to mitigate the impact of the contract loss are now underway, in parallel with the Group's previously stated drive towards greater efficiency, scalability and margin expansion, as part of its SaaS transition.

The Board is confident that this change has no impact on the Group's growth opportunities, which remain strong. The Board's vision to significantly grow the business and deliver enhanced EBITDA margins is unchanged and it remains committed to investing in key areas to fuel growth. These include the ongoing acceleration of the Group's SaaS transition, business readiness for the OEM partnership and Sales and Marketing in the US.

The strength of recent renewals means that 83% of revenue from the remaining top 10 customers is under contract to at least FY27. NRR excluding the NRS contract remains strong at 117%, as at 30 April 2025.

The contract loss is not expected to meaningfully impact the Company's financial performance in the financial year to 30 June 2025 ("FY25") and the Board expects to report results for FY25 in line with current market expectations*. The Group's balance sheet remains robust, with a strong net cash position of £12.5m as at 30 April 2025 and £20m of undrawn facilities. Further details on trading and the outturn for FY25 will be included in the Company's FY25 full year trading update, expected to be announced in mid-July 2025.

While the impact on FY26 performance will be material, the Board anticipates maintaining a double digit adjusted EBITDA margin. The positive progress with the global OEM agreement, strength of the sales pipeline, new Wins in Australia and the UK alongside ongoing expansion with existing customers, and cost reduction actions are expected to support a return to double digit revenue growth and a 20% adjusted EBITDA margin in FY27.

Global OEM agreement progressing well

The Group continues to make good progress with the transformational global OEM agreement with one of the world's largest enterprise software vendors. The product has been successfully launched by the OEM at two global customer events, pilot customers are now engaged in the early adoption programme and Eagle Eye's product development has progressed well. The Board therefore continues to expect the first contracts to be signed in H1 FY26, providing confidence in the Group's long-term prospects.

Tim Mason, CEO of Eagle Eye, commented, "While the news of this contract termination is clearly disappointing, it reflects commercial changes at NRS, outside of our control, and we are taking measures to mitigate the financial impact of the loss. This is a short-term set back and the fundamentals of the business are strong. We have the industry-leading loyalty and promotions capability globally, with attractive growth prospects and an unchanged opportunity.

"The transformational global OEM agreement is progressing well, which alongside our increased focus on the US market and growing customer adoption of our powerful AI-powered offerings, provides confidence in the return to double digit growth and 20% adjusted EBITDA margin in FY27, and the achievement of our medium-term milestones of £100m revenue and at least 30% adjusted EBITDA margin."

* Prior to this announcement, the Board understands market expectations for FY25 to be Revenue of £47.7m with an Adjusted EBITDA margin of 23.8%.