Pathos Communications to report double-digit first-half growth
Pathos Communications PLC shares climbed on Monday, after it highlighted revenue and adjusted earnings growth for its first half, and stood by full-year guidance.
The stock was up 8.4% at 29.80 pence on Monday afternoon in London.
The London-based public relations company expects to report revenue of USD7.3 million for the first half of 2026, up 14% from USD6.4 million the year before. It said this reflects ongoing product innovation and the successful scaling of its sales channels, including new client sign-ups rising by approximately 30% on a monthly basis following the inception of a new structure for its sales management team.
Pathos also expects to report USD1.7 million in adjusted earnings before interest, tax, depreciation and amortisation, up 31% from USD1.3 million. Adjusted Ebitda accounts for share-based payments and, for the first half of 2025, USD85,000 in one-off non-recurring items relating to its admission to AIM.
The company sees this adjusted Ebitda growth as "particularly impressive" in light of investments during the period and costs associated with being a PLC following its listing in December.
Pathos' net cash was "ahead of market expectations" at USD5.9 million as of June 30, down from USD1.3 million one year prior.
Pathos noted that approximately 36% of revenue during the period was generated from repeat customers, up from 16% the year before.
The firm also noted that earlier this year it secured a one-year, approximately USD700,000 contract, which is "the largest sale in its history," with "a major non-profit consulting firm."
Chief Executive Omar Hamdi said this contract is "progressing as planned".
Pathos anticipates "accelerated growth in the second half," and said it remains confident that it will meet market expectations for the full year. The company gives these as USD14.0 million in revenue and USD4.0 million in adjusted Ebitda.
"H1 2026 has been a period of strong delivery for Pathos, with revenue, profits and cash receipts all increasing while we continued to invest the proceeds of our successful IPO behind the next phase of growth," Hamdi commented. "The period saw us broaden our product offering, secure strategic publisher partnerships, strengthen our sales organisation and continue to advance Pressella, our proprietary AI platform...We remain highly focused on executing our growth strategy and are excited by the significant opportunities ahead."
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