Business
Trading Update & Notice of Half-Year Results
Dotdigital Group plc reported a strong first half of FY26, with core CXDP contracted ARR increasing by 13% to £75.4 million and recurring revenue up 11% to £37.3 million, representing 84% of total revenues. Total group revenue grew 4% to £44.2 million, and average revenue per customer (ARPC) rose 7% to £1,968 per month. The company also noted positive integration of Social Snowball, with its ARPC increasing by 9% to US$348 per month. Despite FX headwinds and market pressures, Dotdigital remains confident in meeting full-year market expectations, supported by its recurring revenue model and product innovation. Cash reserves stood at £36.1 million as of December 31, 2025. Disclaimer*
About this update from Dotdigital Group Plc
[{"type":"text","content":"\n\n27 January 2026\n\n \nDotdigital Group plc\n(\"Dotdigital\" or the \"Group\")\n \nTrading Update & Notice of Half-Year Results\n \nDouble-digit growth in core CXDP ARR, confident in FY26 outlook in line with market expectations\n \nDotdigital (AIM: DOTD), the leading provider of an AI-powered customer experience and data platform for intelligent, personalised marketing engagement at scale, announces a trading update for the six months ended 31 December 2025 (\"H1 2026\"). The trading performance reported in this statement is based on unaudited management accounts.\n \nThe Board is pleased to report good progress from its strategic initiatives, delivering high-quality growth and strong margin performance, supporting the Group's ability to reinvest in its strategy. Demand from new and existing customers remained solid, supported by the Group's focus on higher-value customers and a highly recurring revenue base, with growth in all regions in the core CXDP business which is reflected in an increase in forward-looking contracted ARR.\n \nH1 Financial Highlights\n \n\n\n\n\n· \n\n\nTrading in line with full-year market expectations1\n\n\n\n\n· \n\n\nForward-looking contracted ARR from the core CXDP business up 13% (6% on an organic2 basis) to £75.4m (H1 2025: £67.0m)\n\n\n\n\n· \n\n\nRecurring revenue from the core CXDP business recognised in H1 up 11% (4% on an organic2 basis) to £37.3m, which now represents 84% of total revenues (H1 2025: 80%)\n\n\n\n\n· \n\n\nTotal Group revenue including the low-margin CPAAS business up 4% to £44.2m (H1 2025: £42.4m), on a normalised3 basis this is up 9% (3% on an organic2 normalised3 basis)\n\n\n\n\n· \n\n\nARPC4 (excluding Social Snowball) increased by 7% on a normalised3 basis to £1,968 per month (H1 2025: £1,830 normalised or £1,916 reported)\n\n\n\n\n· \n\n\nCash at 31 December 2025 totalled £36.1m (31 December 2024: £45.7m), following the $20m consideration payment for Social Snowball\n\n\n\n\n· \n\n\nFX headwinds incurred on all metrics above which are disclosed on an actual currency basis, constant-currency growth rates are all approximately 1% higher than those highlighted above\n\n\n\n\n \nAs highlighted over the previous y...