Shares in Eagle Eye Solutions Group PLC (AIM:EYE) dropped 22% after the company warned its revenue for the current year and 2026 would be below market expectations.
The shortfall is attributed to a decline in professional services revenue and lengthening sales cycles amid challenging economic conditions.
For the six months ending December 31, Eagle Eye reported flat overall revenue growth at £24.2m, with a 10.4% rise in recurring SaaS revenue offset by a 16.4% drop in professional services and a 77.5% decline in SMS revenue.
Despite the setback, the company highlighted a new five-year global partnership with a major enterprise software vendor, which it expects to drive significant growth from 2027 onwards.
In early trading, the shares were off 102.5p at 368.5p.