Shares in Narf Industries PLC (LSE:NARF) rose as much as 23% after the US-based cybersecurity group reported a 40% increase in full-year revenue and announced a new government contract worth more than $2.5 million.
Unaudited revenue for the year ended 31 March 2026 came in at approximately $4.2 million, up from $3.0 million in the prior year, driven by growth in the group's government research and development activities.
The post-period contract award, from a US government customer, relates to software supply chain security and is expected to contribute to future revenues, though further details remain subject to contractual restrictions.
Narf also reported approximately $5.3 million of contracted revenue already in place for the current financial year, providing strengthened forward visibility.
The company completed the rebranding of its Ranger.ai product to UPxi, short for Upstream Extended Intelligence, repositioning it as an agentic AI platform focused on detecting cybersecurity risks in open source software before they cause downstream damage.
An initial UPxi contract in the low six figures has been secured through a partner aligned with a major systems integrator, with follow-on phases expected to expand its scope and value.
After an initial early burst, the shares settled at 0.56p, up 6.3%.