PCI Pal’s H126 trading update confirmed strong growth in both annual recurring revenue (ARR) and contracted ARR (CARR) after winning record new business for a first half. Revenue increased 7% y-o-y, or 14% on a normalised basis. Management commented that it was seeing the highest levels of demand for its core secure payments products and a highly encouraging sales pipeline entering H2, giving it confidence that the group can meet the board’s expectations for FY26. We maintain our forecasts.

PCI Pal has launched its new secure integration with Epic healthcare software. Epic is the leading electronic healthcare record (EHR) software provider in the US, serving close to half of all hospitals. The integration will enable users of Epic software to take secure payments from within Epic applications, improving compliance and reducing friction. This is an important step in the company’s plan to expand in the US, with the healthcare market offering significant potential for new business.

At its recent capital markets day, PCI Pal reiterated its growth strategy as it transforms from a secure payment solutions provider to a multi-product secure engagement platform. With the ambition to become a ‘rule of 40’ company in the medium term, the company outlined the steps it is taking to maintain annual recurring revenue (ARR) growth of 18–20%. This includes a combination of winning new partners and enterprise customers, geographic expansion and expanding the product range to cover more of a customer’s engagement with a contact centre, whether human or AI bot interaction. Profit growth is expected to come from revenue drop through and operational improvements such as self-service deployments and reduction in time to revenue for deployments.