Trading Update
KRM22 plc reported a strong trading update for the 12-month period ending December 31, 2025, with Annual Recurring Revenue (ARR) growing 19% to £7.6 million, driven by £1.6 million in new contracted ARR and £1.2 million net ARR increase at constant FX rates, partially offset by £0.4 million in churn. Total revenue recognised increased 11% to approximately £7.5 million, though Adjusted EBITDA decreased to £0.7 million from £1.0 million in the prior year. The company successfully completed a £9.2 million fundraise in November 2025, resulting in a robust gross cash position of £5.2 million and eliminating net debt, which will fund growth initiatives in sales, marketing, and development.
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KRM22 plc, (AIM: KRM) the technology and software investment company, with a particular focus on risk management in capital markets, today issues the following trading update for the 12-month period ended 31 December 2025 ("FY2025").
The Company expects to report audited results for FY2025 in May 2026, and is pleased to report the following financial highlights*:
- ARR at 31 December 2025 of £7.6m (FY2024: £6.6m, £6.4m at constant FX rates) - growth of 19% at constant FX rates
o New contracted ARR in the year of £1.6m (FY2024: £1.7m)
- Total revenue recognised of approximately £7.5m (FY2024: £6.8m) - growth of 11%
- Adjusted EBITDA: £0.7m (FY2024: £1.0m)
- Gross cash as of 31 December 2025 of £5.2m with net cash of £5.2m (FY2024: gross cash of £1.0m, net debt of £3.5m)
- Successful £9.2m fundraise completed in November 2025
As reported in the trading update on 7th August 2025, approximately 50% of Group ARR is derived from USD denominated contracts and, with a 7 per cent change in GBP:USD FX rates in FY2025, ARR at the start of FY2025 restated using a constant FX rate as at the end of FY2025 was £6.4m (£6.6m as previously reported using 31 December 2024 FX rates).
Using constant exchange rates, the change in ARR during FY2025 was a net increase of £1.2m. This was driven by £1.6m from cross-sales to existing customers and contractual price increases. Specifically, cross-sales of the Risk Manager, Limits Manager, and Market Surveillance applications generated £1.1m, while contractual price increases across the same applications added another £0.5m. This growth was partially offset by a churn of £0.4m, which was mainly attributed to two institutional customers who cancelled their license of the Market Surveillance application whilst, in both cases, singing new multi-year contracts to license other KRM22 applications.
With the successful fundraise completed in November 2025 raising £9.2m, KRM22 is now debt free and, following receipt of a three-year license fee payment from one its customers, the Company had a strong cash position at 31 December 2025 of £5.2m. This cash will be utilised to support the growth strategy presented to investors, namely investment in additional sales, marketing and development resource to allow KRM22 to expand its existing suite of risk management applications to offer multi-asset solutions to the capital markets industry. Importantly, post the fund raising, management is able to focus on growing the business and delivering on the Company's strategy, without the distraction of managing a complex balance sheet and operating within restrictive financial covenants.
Dan Carter, CEO commented: "KRM22 delivered a solid performance in 2025, with ARR growing 19% to £7.6m with new contracted ARR of £1.6m reflecting the continued demand for our applications. With our year‑end cash position strengthened significantly to £5.2m, we enter 2026 with a strong sales pipeline, a robust balance sheet, and clear strategic priorities, positioning the business for continued growth."
*The financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.
See more about KRM22 at KRM22.com
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.