Craneware on Track for Double-Digit Growth But Shares Plunge

Craneware plc (CRW.L) released a trading update for the first half of fiscal year 2026, ended December 31, 2025, signaling continued strong performance and reaffirming expectations for the full year. However, the company's share price tumbled around 5% following the update.

The healthcare financial performance solutions leader is projecting double-digit growth in the near term, buoyed by a robust pipeline and favorable market conditions.

Revenue for H1 FY26 reached approximately $106 million, a 6% increase compared to $100 million in H1 FY25. Adjusted EBITDA saw even stronger growth, climbing to roughly $33.4 million, a double-digit increase from the $30.3 million reported in the prior year. This growth reflects the successful execution of Craneware's strategic priorities and sustained demand for its solutions.

The company's Annual Recurring Revenue (ARR) has grown by approximately 4% to $184.3 million, up from $177.3 million in H1 FY25. Continued sales success and a Net Revenue Retention rate above 100% underscore the stickiness of Craneware's offerings and the strength of its customer relationships.

Craneware continues to generate high levels of operating cash, which it is deploying to invest in its product portfolio and reduce debt. Total bank debt has been reduced to $23.4 million (H1 FY25: $31.6 million), while the company maintains healthy cash reserves of $71.2 million (H1 FY25: $72.2 million), after adjusting for cash in transit.

The temporary halt to the Health Resources and Services Administration (“HRSA”) Rebate Model Pilot, due to court challenges, provided short-term clarity for healthcare providers. While the halt impacted Craneware’s reported revenue and recurring revenue growth for the period, the company's rapid development of a viable rebate solution demonstrates the strength of its Trisus platform.

CEO Keith Neilson stated, “We are pleased to have delivered another healthy first half performance, which combined with the strength of our recurring revenue model provides confidence in near-term, sustainable double-digit growth, as customers increase their use of our Trisus platform and platform partner offerings,” reinforcing the company’s focus on innovation and customer success.

Craneware will announce its full results for the six months ended December 31, 2025, on March 2, 2026. The company's strong balance sheet, recurring revenue, and cash generation position it well to capitalize on its strategic position in the US healthcare market.