Craneware plc

Revenue was broadly unchanged at $206 million. Adjusted EBITDA was $67.1 million, implying a 33% EBITDA margin. Adjusted basic EPS was $1.68. ARR was $185 million, NRR was about 100%, customer retention was greater than 90%, and operating cash conversion was 98%. Gross margin was 84% versus 87% a year earlier. Bank debt rose from $27.7 million to $43.5 million, reflecting funding for the $25 million share buyback; year-end cash was $54.8 million and cash less bank debt was a net positive $11.3 million. For FY27, management said revenue expectations have been reset to approximately the current ARR level of $185 million, with mid- to high-20% margins expected by the end of calendar 2027 and 30%+ margins targeted for FY28.

Keith Neilson framed FY26 as disappointing but said investors should not “throw the baby out with the bathwater,” pointing to ARR, customer retention, cash generation and long-term relationships as the core strengths that remain intact. He said the company is being prudent by resetting FY27 around ARR, reviewing costs across the business, and preserving investment in cybersecurity, product development and customer service. He also emphasized that the 340B market will likely evolve rather than disappear, and that Craneware’s products and Microsoft partnership position it to regain growth into FY28.

Craig Preston said FY26 revenue was broadly unchanged at $206 million, adjusted EBITDA was $67.1 million, adjusted basic EPS was $1.68, and operating cash conversion was 98%. He highlighted that gross margin moved to 84% from 87%, largely because of a revenue mix shift into technology-enabled services and a reallocation from opex to cost of sales, while development spend rose 4% to $59.6 million with $16.9 million capitalized. He also noted year-end cash of $54.8 million, $56 million available under the RCF, about $100 million of accordion capacity, and a maintained total dividend of 32p per share despite the $25 million buyback and higher bank debt.

Analysts asked whether the cyber breach had delayed or lost customer renewals; management said no, describing customer reaction as very supportive and saying they were not seeing renewals fall away. They also pressed on the profit impact if FY27 revenue is only around $185 million; Keith Neilson said the cost review should leave the business in the mid- to high-20% margin range by the end of calendar 2027, with a 30%+ exit run rate aimed at FY28. On the cyberattack cost, management said it was too early to quantify, and on ARR, Craig Preston said they are not currently expecting a drop and are still modeling approximately 100% NRR.