Facephi: Half-year revenue down to €11.6M, ARR up 6.3%
Facephi published its half-year accounts on 30 October 2026, showing a gap between recognised revenue and its contractual indicators. First-half revenue came to €11.6M, while total contract value (TCV) rose 16.4% and annualised recurring revenue (ARR) rose 6.3%.
The Spanish digital identity specialist, listed on BME Growth and Euronext Growth Paris, attributes this difference to the shift from prepaid multi-year contracts to consumption-based billing, which spreads revenue recognition. It has updated its 2026 targets and now aims for revenue of €32.5M, down 9.7% year on year.
Half-year revenue down, free cash flow positive over twelve months
For the six months ended 30 June 2026, revenue reached €11.6M, compared with €12.6M a year earlier. Over the rolling twelve months to end-June, however, it stood at €34.9M, up 17.3%. According to the company, the half-year figure does not include any multi-year contract.
Half-year results declined: EBITDA moved from -€0.2M to -€1.2M and the loss before tax from €5.1M to €6.1M. Net income came to -€6.1M, compared with -€5.3M in the first half of 2025.
The accounts include a trade receivables impairment charge of €1.2M, compared with a reversal of €0.1M a year earlier. Doubtful receivables reached €6.4M at end-June, compared with €5.2M at 31 December 2025.
Half-year free cash flow was -€0.8M, compared with -€4.4M a year earlier. Over the rolling twelve months, it reached +€1.1M, compared with -€0.1M: a first in the group's fourteen-year history, according to the press release. Twelve-month EBITDA amounts to €9.4M, compared with €3.5M.
Consumption-based contracts and bank maturity in December 2026
Chief Executive Officer Javier Mira states that the SaaS model based on a platform now accounts for more than 90% of activity. New contracts spread amounts over their entire term, rather than the immediate recognition associated with certain prepaid multi-year contracts. Cloud accounted for 91% of half-year revenue, compared with 86% in 2025.
This mechanism reduces revenue recognised in the short term, whereas ARR measures the annualised value of contracts regardless of the accounting calendar. Management specifies that revenue and ARR should converge over time. Activity remains concentrated: Latin America represented 97.1% of half-year revenue and banking 87.6%.
On the balance sheet, gross bank debt fell from €7.2M at end-2025 to €6.6M at end-June, a decrease of 8.3%.
Available cash stands at €0.7M, compared with €2.2M at 31 December. The syndicated loan matures in December 2026, with €4.6M drawn on tranche B and €1.5M on tranche C.
The group obtained a €0.6M loan from BBVA and announced to the market on 15 October 2026 the establishment of a €20M commercial paper programme on the Alternative Fixed Income Market. The board of directors considers that operating cash flows and new financing will cover current liabilities.
2026 target: €32.5M revenue and €0.9M free cash flow
For 2026, Facephi targets normalised EBITDA of €7.4M, a margin of 22.8% compared with 28.9% in 2025. The company specifies that the revision of the revenue target reflects the change in recognition timing, not a change in its expectations for the underlying business.
Before publication, the two analysts covering the stock were expecting average revenue of €45M for 2026. At mid-year, half-year revenue represents 35.7% of the company's annual target, and the company points out that the second half has historically accounted for most revenue and cash generation.
Net financial debt, at €5.8M at end-June, is expected to be €4.1M at year-end. For 2027, management targets a return to double-digit growth, driven by behavioural biometrics, the EMEA region and partnerships, supported by Facephi Intelligence Platform, presented on 19 October 2026.
The 2026 target rests on positive free cash flow of €0.9M, after -€2.4M in 2025.
