Nuix – 1H25 Results Update
Overall Tone
Nuix delivered moderate revenue and ACV growth in 1H25 but faced a decline in statutory EBITDA. While cash flow remains strong and ACV is growing, challenges in contract procurement cycles and a decrease in capitalised R&D spending weighed on earnings. The company is maintaining its FY25 growth targets but acknowledges execution risks.
Financial Highlights
| Metric | 1H25 Range | 1H24 | % Change |
|---|---|---|---|
| Annualised Contract Value (ACV) | $215M – $217M | $199.6M | +8% – 9% |
| Statutory Revenue | $104M – $106M | $98.4M | +6% – 8% |
| Cash EBITDA | $11M – $13M | $10.3M | +7% – 26% |
| Underlying EBITDA | $26M – $28M | $28.4M | (1%) – (8%) |
| Statutory EBITDA | $14M – $16M | $17.2M | (7%) – (19%) |
| Cash on Hand | $30M – $31M | $24.0M | +25% – 29% |
Outlook Commentary
Nuix is targeting approximately 15% ACV growth in constant currency for FY25, but current trends suggest full-year ACV growth will likely be in the range of 11% to 16%. The company is experiencing longer procurement cycles due to larger, more complex contracts and a transition to platform-based sales.
Guidance Statements
Nuix remains on track to meet its FY25 target for revenue growth exceeding operating cost growth (excluding legal expenses). The company continues to fund software development from free cash flow and expects to be cash flow positive for the full year.
Result vs Market Expectations
The update is largely in line with expectations, with ACV growth being a positive sign. However, the decline in statutory EBITDA and the continued impact of legal expenses may raise concerns among investors. The market will likely focus on whether Nuix can execute its growth targets in the second half.
Market Positioning
- Share price performance pre-results: Nuix has experienced some volatility leading up to the results.
- 52-week high comparison: The stock remains below its peak, with investor sentiment influenced by legal costs and execution risks.
Disclaimer:
This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or, if they need advice, seek it from a qualified financial adviser.
Quick Take: 1H25Update ASX:NXL