Pathos Communications Plc (LSE:NEWS), in its interim results statement, told investors that first-half earnings (adjusted EBITDA) jumped 36% as higher revenue, improving operating leverage and sharply lower bad-debt charges fed through to profitability, with trading since June putting the PR technology group on course to meet or slightly beat full-year expectations.
Revenue for the six months to June rose 14% to US$7.34 million, while adjusted EBITDA increased to US$1.73 million from US$1.27 million and reported pre-tax profit climbed 27% to US$964,000. Adjusted EBITDA margin widened to 23.65% from 19.8%.
Gross margin was lower year-on-year at 71% versus 81%, though it improved from 69% in the second half of 2025. Cash receipts from customers rose more than 80% to US$7.9 million, while repeat customers accounted for 36% of revenue compared with 16% a year earlier. Pathos ended June with US$5.9 million of net cash after investing US$1.72 million in intangible assets, including its AI platform and customer databases.
The company said July produced record monthly revenue and trading through August was significantly ahead of the prior year. It remains confident of meeting, or coming in slightly ahead of, market expectations for 2026 revenue of US$14.0 million and adjusted EBITDA of US$4.0 million.
Pathos also said its Pressella AI “virtual publicist” has achieved at least seven times the success rate of human colleagues in sales development testing. Pressella and the broader PathosMind platform remain on track for general availability in the first half of 2027.
