Celebrus Technologies PLC (AIM:D4T4, OTC:DFORF) shares fell 10% to 85p on Thursday after the data solutions provider reported a sharp fall in full-year revenues and warned of ongoing difficulty winning new customers.
Full-year revenues for the year to 31 March 2026 are expected to come in at approximately $23.3 million, against $38.7 million a year earlier, with the decline driven primarily by changes to the group's contractual arrangements with customers rather than any reduction in underlying activity.
The group swung to an adjusted pre-tax loss of approximately $0.2 million from a profit of $8.7 million in the prior year, though the outcome came in slightly ahead of expectations and reflected cost discipline through the second half.
Annual recurring revenue (ARR), a key metric for software businesses representing contracted future income, rose 10.3% to $15.0 million, supported by a net revenue retention rate of 97.6%, indicating strong performance among existing customers.
However, chief executive Bill Bruno acknowledged the business had struggled to generate new customer wins consistently, with several deals at the contractual stage in the fourth quarter lost or delayed, dragging on the ARR outcome for the year.
Two existing banking customers also reduced their Celebrus software fees following divestitures, adding further pressure.
The group ended the year with cash of $32.0 million and no debt.
Bruno said the business had made adjustments based on lessons learned and that the pipeline entering the new financial year was strong, with a good influx of new leads already secured.