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(Sharecast News) - Netcall reported double-digit revenue growth in the first half of its 2026 financial year on Wednesday, driven by expanding cloud adoption and rising AI-related demand, as the AIM-listed software group lifted annual contract value and reiterated a positive outlook for the full year.
Revenue rose 15% to 26.5m in the six months ended 31 December from 23.0m a year earlier, reflecting 11% organic growth and an initial contribution from Jadu, which was acquired in December.
Cloud services revenue increased 34% to 17.9m from 13.4m.
Total annual contract value reached 50.5m, up 28% from 39.4m, while cloud services ACV jumped 42% to 42.6m.
Cloud now accounted for 84% of total ACV, up from 76% a year earlier, which Netcall said strengthened forward revenue visibility. Recurring revenue rose to 83% of total revenue from 79%.
Adjusted EBITDA increased 13% to 6.45m and adjusted profit before tax rose 11% to 5.43m.
Statutory profit before tax fell 31% to 2.54m from 3.69m.
Adjusted diluted earnings per share increased 10% to 2.41p.
Netcall ended the period with cash of 14.8m and net funds of 13.8m, down from 22.0m and 20.9m respectively a year earlier, after 12.7m of acquisition-related payments.
The company said it remained debt-free.
Operationally, Netcall said expansion within its existing customer base continued to drive growth, with cloud net retention steady at 115%, supported by adoption of additional modules and AI features, as well as ongoing cloud migration.
AI adoption accelerated, with AI-related bookings more than tripling year-on-year and contributing a significantly higher share of new ACV, while new customer momentum improved through higher logo additions and higher value per new account.
The acquisition of Jadu was positioned as a strategic expansion of the group's Liberty platform, increasing its digital experience capability and extending coverage to more than half of UK councils, while also providing access to a US partner network.
"We delivered a strong first half, with double-digit revenue growth, improved profitability and clear progress across our key metrics," said chief executive James Ormondroyd.
"Cloud momentum remained a key driver, lifting Cloud ACV by 42% year-on-year and increasing recurring revenue to 83% of the total, enhancing revenue quality and visibility.
"Customer adoption of the Liberty platform continued to deepen, reflected in consistently strong Cloud net retention.
"Adoption of AI capabilities accelerated across agent-assist, voice automation and self-service, contributing to higher customer value as organisations expand their use of Liberty."
Netcall said momentum has continued into the second half, supported by a strong pipeline and a record contracted order book of 92.4m.
"We enter the second half with positive momentum, a strong pipeline and a record contracted order book, and the board remains confident in delivering ongoing progress in 2026," Ormondroyd said.
At 1356 GMT, shares in Netcall were down 0.61% at 102.38p.
Reporting by Josh White for Sharecast.com.