H1 Trading Update
Pebble Beach Systems Group plc reported an encouraging first half of 2026, with revenue expected to increase by 10% to approximately £6.5 million, driven by a 19% rise in project revenue to £3.1 million due to favourable software licence deliveries. Recurring revenue grew 6% to £3.4 million, and adjusted EBITDA is projected to be £2.4 million, with an improved margin of 37%. The company significantly reduced its net debt to £0.8 million as of June 30, 2026, and is on track to achieve net cash by year-end. The Board remains confident in the outlook, citing a solid order book and growing recurring revenue.
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Pebble, the global software provider of specialist automation solutions for the broadcast and streaming markets, is pleased to provide the following trading update for the half-year ended 30 June 2026.
Trading over the first six months of the financial year has been encouraging and in line with the Board's expectations. Revenue is expected to be up by 10% to c.£6.5m (H1 2025: £5.9m), with a strong contribution from project revenue1, up 19% to c.£3.1m (H1 2025: £2.6m), reflecting the favourable timing of software licence deliveries in the period. Recurring revenue, which is derived almost entirely from support and maintenance contracts ("SLAs"), continued to increase and contributed c.£3.4m (H1 2025: £3.3m), up 6% year-on-year.
Adjusted EBITDA2 in the first half is expected to be c.£2.4m (H1 2025: £2.0m), and the adjusted EBITDA margin is expected to be higher at c.37% (H1 2025: 34%). This mainly reflects the project revenue mix in the period, which included a higher proportion of software licence sales.
First-half profitability reflected the phasing of these software licence sales, which carry high gross margins and are recognised on delivery. The Board currently expects that software licence revenue will represent a lower proportion of total revenue in the second half.
The Company continued to generate strong operating cash flows, strengthening the balance sheet and enabling further bank debt repayment, in line with the Board's focus on debt reduction. Accordingly, net debt decreased significantly to c.£0.8m at 30 June 2026 (30 June 2025: net debt of £3.3m), and Pebble remains on track to move into net cash by the end of 2026.
The Board remains confident in the outlook for the year. The Company is well-positioned with a solid order book and a growing recurring revenue base. Pebble's half-year results are expected to be published in early September 2026 when an update on current trading and prospects will also be provided.
Notes
1Project revenue: revenue from projects is generated from three sources: the professional services associated with the implementation of Pebble software; the sale of software licences (which are perpetual); and the sale of third-party hardware. Professional services revenue is recognised over the length of the project implementation while software licence revenue and third-party hardware revenue are both recognised on delivery.
2Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is a non-GAAP measure and is before non-recurring items and foreign exchange gains/losses.
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