Lo-q Stock Earnings Reports

Key points for investors:

- Financials: H1 revenue was just under $68m, cash EBITDA $5.1m and net cash $25.4m. Reported revenue down ~1.9% (adjusted for non-repeatable hardware and disposals, constant-currency revenue excluding hardware was +1.2%). Gross margin improved (76.2% to 78.3%) driven by mix away from low‑margin hardware. Cash generation strengthened despite the £8m buyback program (~2/3 complete as of mid‑September).

- Commercial momentum: Management says new-win revenue (measured on a 12‑month basis) was nearly double prior year (~+90%) and the weighted sales pipeline has doubled (from about $12m to $24m). Win rates, deal sizes and Freedom product adoption have improved (Freedom now ~39 venues, 48 in pipeline). Paradox and Horizon migrations and cross‑sell opportunities are driving larger average deal values.

- Product & strategy: Progress on composable commerce (pilot complete; broader rollouts planned 2026–27), further rollout of Passport V6 and commerce API, expanded Paradox integrations (Inntopia, snow‑school) and AI initiatives (language models, voice‑enabled prototype chatbot for ticket/food ordering). Acquisition of 1RISK (digital waiver) to strengthen integrations and product differentiation in ski/resort markets.

- Capital allocation: Ongoing share buyback (target ~GBP 8m, ~halfway reported earlier, ~2/3 complete as of the latest update), acquisition spending for IP (1RISK) and development of a formal capital allocation framework. Margin guidance unchanged (~15%).

- Headwinds & risks: Transactional revenue was hit by extreme June heat (lower attendance/virtual queuing volumes) and a large prior‑year hardware sale that didn’t recur. Underlying admin costs rose modestly (wage/FX effects). Middle East opportunities are attractive but subject to construction/timelines and confidentiality; competition and commercial sensitivities exist.

- Outlook: Management expects the June softness to be a short‑term weather effect, reports recovery in July/August volumes, and reiterates margin guidance (~15%). Focus remains on scaling wins, increasing basket size (cross‑sell e‑commerce and F&B via Freedom), delivering composable commerce and improving operational efficiency (including AI tooling).