Beeks Financial Cloud Shares Tumble Despite FY25 Earnings, Revenue Increase

Beeks Financial Cloud Group PLC (LON: BKS) shares plunged on Monday after it announced its final results for the year ended June 30, 2025.

The cloud computing and connectivity provider for financial markets reported significant growth in revenue and profitability. However, shares are down over 9% so far in the session.

Revenue climbed 26% to £35.9 million, a notable increase from £28.5 million in 2024. This surge was largely propelled by substantial growth in Proximity and Exchange Cloud revenue, which reached £10.3 million compared to £3.5 million the previous year.

Profitability also saw a significant boost, with gross profit increasing by 30% to £14.7 million. Underlying EBITDA rose 27% to £13.6 million, and underlying profit before tax jumped 41% to £5.5 million. The company's underlying diluted EPS increased 19% to 7.60p.

Beeks reported a positive operational free cash flow position, with net cash standing at £7.0 million as of June 30, 2025, slightly up from £6.6 million the previous year. This was achieved despite ongoing investments in the company's product offerings, highlighting efficient capital management.

The company's Annualized Committed Monthly Recurring Revenue (ACMRR) increased by 5% to £29.5 million, and climbed to £31.5 million by the end of September 2025. This increase was particularly driven by a strong start to the new financial year for Private Cloud services, showcasing the stability and predictability of Beeks' revenue streams.

CEO Gordon McArthur commented, “FY25 has been another landmark year for Beeks… We move into FY26 in a strong position, bolstered by a widened offering and a record pipeline of opportunities, providing confidence in sustained growth during FY26 and beyond.”

The market backdrop continues to favor cloud-based solutions, with an increased level of new opportunities entering the sales pipeline. Beeks is capitalizing on this trend by modernizing technology infrastructure and outsourcing functions for its customers.

The company's pipeline is said to be at record strength across its offerings, including opportunities with several of the world's leading financial institutions.

Even at this early stage of the year, the Board is confident in achieving results for FY26 in line with its expectations. The company has secured several significant Private Cloud contracts across multiple financial institutions globally, providing good revenue visibility for FY26 and contracts with an additional four of the Top 30 Exchanges at final stages.