Pathos Communications Plc (LSE:NEWS) shares started Monday positively, climbing 8%, after the PR group reported a 31% increase in first-half adjusted EBITDA as improved collections and a growing contribution from repeat customers strengthened cash generation.
Adjusted EBITDA reached US$1.7 million in the six months to 30 June, up from US$1.3 million, while revenue climbed 14% to US$7.3 million. Customer cash receipts increased by 80%, helping net cash finish the period at US$5.9 million, ahead of market expectations and only slightly below December’s US$6.2 million.
Repeat customers accounted for 36% of revenue, compared with 16% a year earlier. Pathos also said monthly new-client sign-ups had risen by around 30% since it introduced a new sales management structure.
The PR technology company reiterated market expectations for full-year revenue of US$14 million and adjusted EBITDA of US$4 million. Its US$700,000 contract with a major non-profit consulting firm, the largest sale in its history, is progressing as planned, with revenue spread across 2026 and 2027.
Pathos expects its Pressella and PathosMind artificial intelligence tools to become generally available in the first half of 2027. Interim results are due in September.
In London, Pathos shares were up 8.4%, changing hands at 29.8p.
Meanwhile, UK stockbroker Cavendish repeated a buy rating and a 42p price target, which implies some 50% upside to the current price.
The broker pointed to the firm's stronger cash collection, prompting an upgrade to its forecasts.
