PCI Pal’s FY26 trading update confirmed that it closed the year with annual recurring revenue (ARR), contracted ARR (CARR), revenue and adjusted EBITDA all ahead of our forecasts. The company saw strong demand from new customers and a slightly improved gross retention rate, including securing multi-year renewals with two key customers. With a stated goal of achieving average ARR growth of 18–20% through FY27 and beyond, the company has closed FY26 well on track to meet this target. We upgrade our FY26 estimates to reflect the strong performance. Pending further detail from FY26 results in September, we maintain our FY27 forecasts.

PCI Pal has confirmed that its contract with HM Revenue and Customs (HMRC) has been retained for a minimum of eight years following a competitive re-tender process. PCI Pal has worked with HMRC for more than seven years; the current relationship with HMRC is direct whereas the new contract has been secured through one of the company’s reseller partners as part of a wider communication services procurement. The contract is expected to generate revenues broadly in line with the existing contract. Since the start of FY25, PCI Pal has re-secured its three largest customers on multi-year agreements, highlighting the strength of its technology and customer support and underpinning our annual recurring revenue forecasts.

PCI Pal has achieved compliance with three different US standards, all of which should enhance its ability to support enterprise customers operating in highly regulated environments, in particular the US healthcare sector. Combined with PCI Pal’s integration with Epic, the leading electronic healthcare record software provider in the US, the company is well positioned to serve US healthcare organisations seeking to secure customer payments.