**Summary**
Intercede Group PLC, a leading cybersecurity software company specializing in digital identities, released a trading update for the six months ending 30 September 2025 (H1 FY26). Key highlights include
1. **Revenue Performance**
Expected H1 FY26 revenues of £8.21 million, a 3.9% year-on-year decrease (4.2% on a constant currency basis), primarily due to delays in US federal contract awards, adverse exchange rates, and changes in revenue mix.
Encouraging growth in licence revenue, with a 65.5% increase to £1.44 million, driven by perpetual and subscription licence income, aligning with the strategic shift to a subscription-based model.
2. **Contract Awards and Renewals**
Secured new contracts and renewals totaling ~$3.2 million in Q2 FY26, including
A $0.4 million subscription licence order from a US energy company.
Orders from a US scientific agencyan Asian government clientand UK defence sector.
Significant support and maintenance renewals from US defence, aerospace, and telco clients.
Over 95% of orders were received via partners, highlighting the strength of the partner network.
3. **Financial Position**
Gross cash balances at £17.8 million as of 30 September 2025, with no debt.
Cash balances include a £1.8 million payment for a share award vesting in July 2025.
4. **Outlook**
CEO Klaas van der Leest emphasized momentum in a diversified pipeline and confidence in short, medium, and long-term growth.
Full-year FY26 performance is expected to align with market expectations of £18.7 million in revenues and £4.6 million in adjusted EBITDA.
5. **Strategic Focus**
Continued emphasis on transitioning to a subscription-based revenue model and expanding the client base globally.
Intercede remains focused on converting pipeline opportunities and strengthening its position in the cybersecurity market. Interim results for H1 FY26 will be released on 25 November 2025.