Full Year 2025 Trading Update & Notice of Results

29 January 2026

Microlise Group plc

("Microlise", "the Group" or "the Company")

Trading Update and Notice of Results

 "16% year-on-year underlying recurring revenue growth from direct customers and £5m of annualised cost savings executed"

Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, provides the following unaudited update on trading for the year ending 31 December 2025 ("FY2025").

Financial Highlights

· Total Group revenue for FY2025 is expected to be in-line with revised market expectations3 at £84.0m (FY2024: £81.0m), representing growth of 3.7%. Annual recurring revenue (ARR) increased 4.6% to £59.1m (FY 2024: 9.4% organic growth to £56.6m).

o  Recurring revenue5 increased by 7.5% to £58.8m driven by 16% underlying year-on-year growth from direct customers.

o Non-recurring revenues decreased 4.3% to £25.2m (FY24: £26.3m) reflecting a decline year-on year in Global OEM-related hardware volumes together with lower implementation revenues linked to a small number of direct customer contracts that are anticipated to be delivered in FY2026.

o Global OEM customers represented 27% of FY2025 total revenue, down from 33% in FY2024 and we cautiously expect FY2026 revenues from OEM customers to be below FY2025

· FY2025 Adjusted EBITDA2 is expected be in-line with revised market expectations3 at £8.3m, representing an adjusted EBITDA margin of c.10% (FY 2024: 14%).

· The Group's net cash as of 31 December 2025 was ahead of revised expectations at £16.7m, up from £11.4m at 31 December 2024. This resulted from strong cash collection during the year, a large contract renewal in Q4 paid annually in advance and the timing of severance payments totalling £1.9m in connection to the cost saving and efficiency measures announced during H2 FY2025, falling post year end.

 Operational Highlights

· The cost and efficiency measures announced in November 2025 were completed prior to the end of FY2025 and will generate £5 million of annualised cost savings as the Group enters FY2026. The Group continues to carefully monitor its cost base and remains focused on expanding profit margins.

· 417 new customers were added in FY 2025 (FY 2024: 375) across key markets and geographies and churn remained low at 1.4% (FY 2024: 0.7%)

· Customers are increasingly adding Microlise products as part of new subscriptions and expansions. Commercial momentum in the direct business includes strong uptake of the Microlise Transport Management Solutions ("TMS") module from new and existing customers across all key markets, further embedding Microlise into customers operating platforms.

· Integration of data from customer fleets' third-party suppliers via APIs provide a single data dashboard via the Microlise One platform.

o  During FY25, API connections integrated with vehicle refrigeration OEMs, enabling customers to bring their temperature monitoring data sources into the Microlise platform, removing the need for multiple systems in their operations.

· In November 2025, Dean Garvey-North was appointed as Chief Technology Officer to succeed Duncan McCreadie, who is retiring after a decade of service to the Group. Dean will drive technology strategy, product innovation and infrastructure excellence.

Microlise Transport Conference

This year's Microlise Transport Conference will take place on 12 May 2026 at the Co-op Live Arena in Manchester, the first time the event has changed location in 9 years.

Recognised as the UK's leading one-day transport and logistics event, the conference will bring together industry leaders, fleet operators, technology innovators and policy makers.

The programme will include keynote sessions, interactive workshops and Microlise technology showcases, all designed to explore the future of road transport and tackle the sector's most pressing challenges across compliance, sustainability, safety and operational performance.

Notice of Results

Microlise expects to announce Final Results for the year ended 31 December 2025 in mid-April 2026.

Nadeem Raza, CEO, Microlise said: "Commercial momentum in our direct business is pleasing and we are carefully investing to capture the expanding opportunity ahead across key markets and geographies. Notwithstanding the softness in year-on-year revenue from Global OEM customers, and the impact of certain one off investments in our go-to-market teams and ongoing data centre migration will have on H1 FY26, Microlise remains profitable, cash generative and well positioned to drive exit ARR and improve profit margins in 2026. We enter FY 2026 with a streamlined cost base, a scalable platform with growing recurring revenue base and an expanding opportunity in UK and International Markets. I am proud of what our team has achieved and am excited by the scale of opportunity ahead."

1. All numbers for the year ending 31 December 2025 disclosed within this announcement are management estimates based on current information and are unaudited.

2. Adjusted EBITDA excludes, exceptional costs in relation to acquisitions and restructuring costs, depreciation, amortisation, share of loss of associate, interest, tax and share based payments.

3. For the purpose of this announcement, the Group believes market consensus for FY25 to be revenues of £84 million and adjusted EBITDA of £8.3 million.

4. Annual Recurring Revenue (ARR) is calculated by multiplying the December 2025 monthly recurring revenue by 12. 

5. Underlying recurring revenue excludes revenue reversals relating to the cyber security incident in FY24.

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About Microlise

Microlise Group Plc is a leading provider of transport and fleet technology to transport and logistic operators helping them to improve efficiency, safety, and reduce emissions. These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 2,500 clients, and a global workforce of 730 across the Group's headquarters in Nottingham in the UK, and offices in France, Australia, and India.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS) and qualifies for the London Stock Exchange's Green Economy Mark.