PCI Pal is a provider of cloud-based secure payment technology to the business communications market. The company has grown annual recurring revenue (ARR) at a fast pace over the last five years, helped by its channel-first strategy. After several years fighting patent litigation, which was ultimately resolved in PCI Pal’s favour in June 2024, the company is accelerating the pace of investment to drive ARR growth. The two areas for additional investment are marketing, both general and product related, to drive deeper engagement with key partners and attract more direct enterprise business; and product development to support the company’s plans to expand the product range and increase net revenue retention. Our ARR forecasts are in line with PCI Pal’s growth targets (18–20% to FY27 and beyond). We forecast a drop in EBITDA margins in FY26 to 2.8% as the extra investment is made, growing to 8.2% in FY27.

Alongside its year-end trading update, PCI-PAL announced that it has put in place a new strategic plan to drive the growth of the business. FY25 revenue grew 25% y-o-y and both revenue and adjusted PBT were in line with consensus. Annual recurring revenue (ARR) was 25% higher y-o-y and to support growth at 18–20% per year over the next three years, the company intends to increase investment in marketing and product development as well as continuing to expand and support its partner ecosystem.