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(Sharecast News) - Pulsar Group reported accelerating organic growth and improved profitability for the year ended 30 November on Friday, alongside a sharp reduction in net debt in the opening months of the new financial year.
Total group annual recurring revenue rose to 64.5m at year-end, representing a 3.9m increase on a constant currency basis, nearly double the growth achieved in 2024.
EMEA and North America remained the primary engine of expansion, with ARR increasing to 34.2m, up 3.4m year on year on a constant currency basis.
The AIM-traded group said it secured a multi-year partnership with a global marketing leader during the year, contributing 2.1m in ARR to 2025.
In the Asia-Pacific region, ARR growth accelerated to 0.5m on a constant currency basis, compared with 0.3m in 2024, lifting the region's total ARR to 30.3m.
Total revenue for 2025 was expected to be about 61m, compared with 62m reported in 2024, with 97% of revenue recurring.
Adjusted EBITDA was forecast at around 10.2m, up from 9.3m reported in 2024, with margin improving to 16.5% from 15.0% on a constant currency basis.
The group said it delivered more than 7m in annualised cost savings during the year, primarily through automation and the decommissioning of legacy technology, reducing headcount by 22% from 918 full-time equivalents in November 2024 to 718 as of this month.
Net debt stood at around 5.6m on 30 November, reflecting one-off restructuring costs, but had since fallen to 2.7m as at 19 February following strong free cash flow generation in the first 12 weeks of the 2026 financial year.
The board said it expected sustainable ongoing cash generation.
During the year, Pulsar continued to roll out new functionality as it transitions to an Agentic AI platform.
That included the launch of 'TeamMates', a framework of specialised AI agents designed to execute high-frequency intelligence tasks across social listening, media monitoring and compliance use cases, alongside new vertical solutions such as Pulsar CLEAR for advertising and regulatory compliance and Crisis Oracle for predictive brand risk intelligence.
The group said it also introduced Pulsar Workspaces for enterprise data governance and expanded its Lumina intelligence suite and Narratives AI search engine.
"2025 was a defining year for Pulsar, characterised by a significant acceleration in organic growth and the successful delivery of our structural cost-rationalisation programme," said chief executive Joanna Arnold.
"I am particularly encouraged by the near doubling of our growth velocity at a group level on a constant currency basis, with our EMNA region continuing to serve as a powerful engine for expansion.
"As we enter 2026, the group has reached a clear inflection point in cash generation.
"The rapid de-leveraging achieved in the first quarter, combined with a right-sized cost base and market-leading AI innovation, gives us strong confidence for the year ahead."
At 1246 GMT, shares in Pulsar Group were up 3.41% at 45.5p.
Reporting by Josh White for Sharecast.com.