Microlise Group Holdings Ltd. (2DI) Q2 2026 Earnings Report
DE:2DI Q2 2026 EPS Results
- Actual EPS
- EUR 0.01
- Consensus EPS
- ―
- Beat/Miss
- ―
- One Year Ago EPS
- EUR 0.03
DE:2DI Q2 2026 Revenue Results
- Actual Revenue
- EUR 46.04M
- Expected Revenue
- EUR 46.09M
- Beat/Miss
- Missed by -EUR 53.68K
- YoY Revenue Growth
- -10.43%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/22/2026
- Time
- Before Open
- Conference Call
- Tuesday, September 22, 2026
Microlise Group Holdings Ltd.'s next earnings date is estimated for April 1, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
The call was predominantly positive. Management reported double-digit direct ARR growth, improving margins, low churn, a growing pipeline, strong market opportunities and a solid cash position, while reiterating that revenue and adjusted EBITDA are expected to be in line with market expectations. The main challenges were declining OEM ARR and renewals, expected negative free cash flow through 2027, supply-chain risks, lower non-recurring revenue and historically poor ROCE.
Management said FY 2026 revenues will be broadly in line and adjusted EBITDA will be in line with current market expectations, with capitalized development increasing in 2026 as the build phase and growth and increased margins coming through in 2027; OEM revenue is expected to be lower in FY 2026 than FY 2025, with a further reduction, albeit lower and slowing down in 2027, before plateauing in back end of 2027, while net free cash flow is expected to be an outflow this year and in 2027 as well, becoming positive towards the end of 2027. The ambition is to get to 20% adjusted EBITDA initially, then 25% and 30% and above, with OEM revenues expected to be flat in the medium term and flattening out at the end of 2027; direct customer growth is expected to accelerate in 2027 and beyond, although component availability issues are currently visible in 2027 and hardware orders are being placed through to 2028.
- Direct ARR Growth and Margin RecoveryH1 FY2026 direct customer ARR sales were GBP 47.1 million, up 12%, with direct customer NRR at 106% and an EBITDA margin of 13.2%. Management described this as a solid recovery from H2 FY2025.
- Low Direct Customer ChurnDirect customer churn remained very low at 1.1%, equivalent to approximately GBP 600,000. Management said the churn was largely managed and understood, including the exit of certain legacy hosting contracts.
- Recurring Revenue and Gross Margin ImprovementRecurring revenue was GBP 30 million and represented 76% of overall revenue, compared with 67% in the comparative period. Gross margin increased to 67.1% from 65.6%.
- Strong Existing-Customer ExpansionDirect ARR increased from GBP 42 million to GBP 47.1 million, with GBP 5.7 million of combined existing and new growth. Existing customers contributed GBP 4.1 million, compared with GBP 1.6 million from new logos, and management said approximately 70%-80% of growth is attributed to existing customers.
- Land-and-Expand Strategy SuccessMicrolise cited LF&E as an example of expansion within an existing customer. Since contracting in 2023 with 259 vehicles, LF&E added further solutions, including TMS this year, increasing Microlise revenue from the customer by 450% over the last three years.
- Strong Market Position and Expansion OpportunityMicrolise reported a 60% market share among U.K. customers with more than 500 vehicles and approximately 2,500 customers. Management identified a GBP 300 million ARR opportunity from cross-selling and upselling within the existing customer base, plus a GBP 65 million ARR opportunity in the U.K. mid-market.
- TMS Momentum and Product InvestmentTMS was described as Microlise's highest-value and highest-margin product. The company delivered more TMS deals in H1 FY2026 than in the prior two years combined, while investing to reduce sales and implementation cycles and accelerate adoption.
- Mid-Market Product LaunchMicrolise is targeting the U.K. mid-market, where it has approximately 30% market share, with repackaged and refined products. A new offer specifically targeting customers with between 100 and 500 vehicles was scheduled to launch the following month.
- Cost Savings and Efficiency ProgramsThe restructuring completed at the end of 2025 enabled GBP 5 million of annualized cost savings. The company achieved an additional GBP 0.5 million of savings in H1 FY2026 and said further initiatives across procurement, hardware engineering, infrastructure and other functions are expected to deliver more results from the back end of 2026 into 2027 and beyond.
- Direct Growth and Go-to-Market InvestmentMicrolise is reinvesting savings into its product portfolio, TMS, mid-market offerings, go-to-market teams in the U.K., Australia and APAC, and marketing activity. Direct customer pipeline grew 18% year-on-year, analyzed margin value increased 14% year-on-year, and direct MV growth was up 11% year-on-year.
- Microlise ONE and Data-Pack DevelopmentThe company is integrating its products onto the Microlise ONE platform with a common data layer. Data packs launched during the year, including Driver Excellence, data quality, fuel efficiency and customer value packs, were described as well received, with additional video telematics, utilization and temperature-controlled offerings planned.
- AI Deployment and MonetizationMicrolise said it has had AI capabilities in some products for approximately five years and is adding analytical tools on top of its data. AI capabilities are being offered through standard upgrades and premium options, while AI is also being used across development and back-office operations to improve efficiency.
- Cash Position and Available FundingCash was GBP 13.5 million at the end of June 2026, compared with GBP 11.1 million at the end of June 2025 and GBP 16.7 million at the end of December 2025. Management also stated that the business is cash generative, has no debt, and has an undrawn GBP 10 million committed RCF plus a GBP 20 million accordion facility.
- Margin Expansion AmbitionManagement is targeting an initial adjusted EBITDA margin of 20%, with a longer-term ambition of 25% and 30% and above. The overall EBITDA margin was 9.9% last year, 5.2% in H2 FY2025 and 13.2% in H1 FY2026.
- Positive Near-Term OutlookManagement said it had good line of sight through year-end and expected revenue and adjusted EBITDA to be broadly in line with current market expectations. It also said it was not seeing margin erosion and remained confident and optimistic about future growth, particularly in direct customers.
- International Growth OpportunitiesManagement identified further opportunities in France, where Microlise has limited penetration, and in Australia and New Zealand, where new road-taxation, driving-hours and vehicle-maintenance regulations are driving demand. The company said France has 20% more heavy-goods vehicles than the U.K. and Australia and New Zealand combined, and nearly double the number of vehicles in the U.K.
- Long-Term Revenue VisibilityTypical direct customer contracts are five years, and management said the customer base is blue-chip and sticky, particularly where customers use multiple products. The company stated that its low churn and contracted revenue provide visibility into future revenue.
DE:2DI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Apr 01, 2027 | 2026 (Q4) | 0.01- | -0.04 | ― | ― |
| Sep 22, 2026 | 2026 (Q2) | ―0.01 | 0.03 | -53.85% (-0.02) | |
| May 14, 2026 | 2025 (Q4) | ―-0.04 | -0.02 | -66.67% (-0.01) | |
| Sep 25, 2025 | 2025 (Q2) | ―0.03 | 0.03 | 18.18% (+0.00) | |
| Mar 27, 2025 | 2024 (Q4) | ―-0.02 | 0 | -700.00% (-0.02) | |
| Sep 24, 2024 | 2024 (Q2) | ―0.03 | 0.01 | 120.00% (+0.01) | |
| Apr 09, 2024 | 2023 (Q4) | ―0.00 | 0 | 50.00% (+0.00) | |
| Sep 28, 2023 | 2023 (Q2) | ―0.01 | 0.01 | 11.11% (+0.00) | |
| Mar 30, 2023 | 2022 (Q4) | ―0.00 | -0.04 | 105.56% (+0.04) | |
| Sep 26, 2022 | 2022 (Q2) | ―0.01 | 0.03 | -59.09% (-0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.