Quartix Technologies delivers 'very strong' Q3, FY profits to 'slightly exceed' estimates

(Sharecast News) - Vehicle tracking software provider Quartix Technologies said on Monday that its third-quarter trading performance had been "very strong", with both full-year revenue and profits now expected to "slightly exceed" the most-recently updated market estimates.

Annual recurring revenues increased by �3.5m during Q3 to �36.1m, equalling, in nine months, the level of ARR growth achieved in FY24. On a trailing twelve months basis to 30 September, ARR growth has further improved to �4.3m, a 14% increase on the ARR level on 1 October 2024.

The AIM-listed group said net revenue retention on a TTM basis was 97.3%, while it also noted that international sales now represent 47% of ARR.

Quartix, which also highlighted that the outlook for 2026 has improved further, said cash flow in Q3 was "particularly good", benefitting from the transition to the latest-generation, lower-cost, tracking system, which has now reached production volumes, allowing final stocks of TCSV15 to be run down.

Following payment of the interim dividend of �1.2m, Quartix's cash balance was �4.6m as of 30 September and stated estimates that free cash flow for the period will be approximately �4.3m, exceeding previous market expectations for the FY.

Chairman Andy Walters said: "We have made substantial progress in many key aspects of our business during the first 9 months of 2025. Over the past 12 months our annualised subscription revenues have risen by a record �4.3m, or 14%, to �36.0m; we look forward to the remainder of the year and 2026 with confidence."

As of 0920 BST, Quartix shares had shot up 10.61% to 315.22p.

Reporting by Iain Gilbert at Sharecast.com