Want to see GB:SAAS full AI Analyst Report?
Top Page
Microlise Group Holdings Ltd.
(LSE:SAAS)
Select Model
Select Model
Rating:61Neutral
Price Target:
75.00 p
▲(50.00% Upside)
Action:Reiterated
Date:10/20/26
The score is driven primarily by financial resilience (low leverage and positive cash generation) despite a notably weak recent income statement (sharp 2025 revenue decline and two loss-making years). Technicals show a clear uptrend but with very overextended momentum (high RSI/Stoch), adding near-term risk. Valuation support is limited due to negative earnings, while the latest earnings call was constructive on direct ARR growth and margin recovery but tempered by expected OEM declines and negative free cash flow through 2027.
Positive Factors
Sticky recurring revenue
Long customer contracts, low churn and a high recurring-revenue mix provide meaningful visibility into future sales. This supports retention-led growth, reduces dependence on constant new-customer wins, and gives Microlise a durable base for cross-selling additional software modules.
Negative Factors
Revenue and profit deterioration
The sharp 2025 revenue contraction and two consecutive loss-making years indicate that recent operating performance has weakened materially. Negative operating profitability can constrain internal investment capacity and makes the durability of the recovery dependent on successful margin improvement and renewed top-line growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sticky recurring revenue
Long customer contracts, low churn and a high recurring-revenue mix provide meaningful visibility into future sales. This supports retention-led growth, reduces dependence on constant new-customer wins, and gives Microlise a durable base for cross-selling additional software modules.
Read all positive factors
Microlise Group Holdings Ltd. (SAAS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£74.09M
Dividend Yield2.97%
Average Volume (3M)146.47K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-5.90%
EPS Growth-207.35%
CountryUK
Employees730
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.02
Shares Outstanding115,771,484
10 Day Avg. Volume181,330
30 Day Avg. Volume146,470
Financial Highlights & Ratios
PEG Ratio-8.85
Price to Book (P/B)1.59
Price to Sales (P/S)1.29
P/FCF Ratio11.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£155.00Price Target Upside210.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)£83.15M
Microlise Group Holdings Ltd. Business Overview & Revenue Model
Company Description
Microlise Group plc specializes in providing advanced technology solutions for transportation management. The company offers a comprehensive Software-as-a-Service (SaaS) platform engineered to digitalize the complex operational processes of large ...
How the Company Makes Money
Microlise makes money primarily by selling fleet-technology subscriptions and related services to commercial customers. Its core revenue stream is recurring SaaS fees for access to its fleet/telematics and transport-management software platforms (...
Microlise Group Holdings Ltd. Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 01, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Direct ARR Growth and Margin Recovery
H1 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.
Negative Updates
OEM ARR Decline
OEM ARR decreased by GBP 3.1 million compared with the 12 months ending June 2025. The decline was mainly attributed to a lower rate of second-life contract renewals, and management expects FY2026 to be lower than FY2025, with a further reduction in 2027 before the business plateaus toward the back end of 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
Direct ARR Growth and Margin Recovery
H1 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.
Read all positive updates
Company Guidance
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.Microlise Group Holdings Ltd. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.43M | 84.03M | 79.47M | 71.72M | 63.21M | 58.78M |
| Gross Profit | 44.89M | 45.60M | 52.00M | 43.58M | 32.39M | 29.06M |
| EBITDA | 4.30M | 4.83M | 5.78M | 8.92M | 5.25M | 4.59M |
| Net Income | -2.43M | -2.17M | -2.05M | 1.58M | 1.35M | -1.48M |
Balance Sheet | ||||||
| Total Assets | 134.17M | 132.88M | 134.64M | 131.18M | 126.14M | 121.34M |
| Cash, Cash Equivalents and Short-Term Investments | 13.77M | 16.74M | 11.40M | 16.80M | 16.68M | 13.21M |
| Total Debt | 4.46M | 3.88M | 1.31M | 1.55M | 1.75M | 1.71M |
| Total Liabilities | 66.66M | 64.84M | 62.74M | 55.51M | 52.52M | 49.79M |
| Stockholders Equity | 67.51M | 68.04M | 71.90M | 75.67M | 73.47M | 71.55M |
Cash Flow | ||||||
| Free Cash Flow | 6.39M | 9.52M | 5.51M | 4.02M | 6.39M | 5.45M |
| Operating Cash Flow | 9.24M | 12.00M | 9.70M | 8.76M | 9.45M | 9.12M |
| Investing Cash Flow | -4.41M | -3.08M | -11.00M | -7.29M | -5.06M | -4.67M |
| Financing Cash Flow | -2.27M | -3.54M | -4.06M | -1.34M | -915.00K | -1.28M |
Microlise Group Holdings Ltd. Technical Analysis
Positive
50.00
Price Trends
54.23
Positive
47.20
Positive
55.90
Positive
Market Momentum
4.19
Positive
61.71
Neutral
18.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAAS, the sentiment is Positive. The current price of 50 is below the 20-day moving average (MA) of 61.38, below the 50-day MA of 54.23, and below the 200-day MA of 55.90, indicating a bullish trend. The MACD of 4.19 indicates Positive momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAAS.
Microlise Group Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | £96.87M | 100.31 | 1.51% | 0.40% | 4.66% | 88.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £74.09M | -30.62 | -3.58% | 2.97% | -5.90% | -207.35% | |
44 Neutral | £9.04M | -1.85 | 89.26% | ― | 2.55% | -41.36% | |
43 Neutral | £687.57K | -0.19 | -799.08% | ― | -27.69% | 34.61% | |
30 Underperform | £1.12M | -0.20 | -586.74% | ― | -1.56% | 55.81% |
* Technology Sector Average
GB:SAAS
Microlise Group Holdings Ltd.
64.00
-47.35
-42.53%
GB:SORT
Location Sciences Group Plc
9.00
-26.00
-74.29%
GB:RDT
Rosslyn Data Technologies
0.95
-2.40
-71.64%
GB:TRCS
Tracsis
325.00
-37.27
-10.29%
GB:MBO
Mobilityone
8.50
7.30
608.33%
Microlise Group Holdings Ltd. Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Microlise Reduces Share Count Through Treasury Buyback
Positive
Oct 19, 2026
Microlise Group plc has repurchased 43,000 ordinary shares under its recently announced share buyback programme, with trades executed via Canaccord Genuity on 15 and 16 October at volume-weighted average prices just above 67 pence. The company wil...
Business Operations and StrategyStock Buyback
Microlise launches £1m share buyback to bolster shareholder value
Positive
Oct 15, 2026
Microlise Group Plc, a transport management software specialist serving fleet and logistics operators, has launched a share buyback programme of up to £1.0 million, funded from existing cash resources, with all repurchased shares to be held i...
Business Operations and StrategyFinancial Disclosures
Microlise lifts recurring revenue and margins as direct customer ARR climbs
Positive
Sep 22, 2026
Microlise reported interim results for the six months to 30 June 2026 showing group revenue down 10% to £39.5 million, mainly due to lower OEM and non-recurring hardware income, but with recurring revenue stable at £29.9 million and risi...
Business Operations and StrategyFinancial Disclosures
Microlise sets date for interim results and ramps up investor outreach
Neutral
Sep 14, 2026
Microlise Group plc, a transport management software specialist serving fleet and logistics operators, plans to release its interim results for the six months to 30 June 2026 on 22 September 2026. The AIM-listed company, which focuses on efficienc...
Business Operations and StrategyFinancial Disclosures
Microlise lifts margins and cash as direct customer revenue offsets OEM weakness
Positive
Aug 3, 2026
Microlise Group reported a solid first half of fiscal 2026, with direct customer annual recurring revenue rising 12% to £47.1m and recurring sales now accounting for 76% of group revenue, even as overall sales declined 10% to £39.5m on w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.