Beeks Financial Cloud Group said today (Wednesday) that revenue rose about 11% to roughly £40.0 million (about $53.6 million) in the year through June, meeting market expectations on the back of what it called a record second half. The company also reported that its net cash position shrank to around £0.63 million from £6.96 million a year earlier, after front-loading spending on its exchange infrastructure.The figures are unaudited, and Beeks expects to publish audited results for the year ended June 30 in October. The update follows a first half in which revenue slipped 7% as the company moved exchange clients onto revenue-sharing contracts that delay when income lands on the books.Record Second Half Offsets a Weak StartFull-year revenue of about £40.0 million compares with £35.9 million a year earlier. On a constant-currency basis, the company put growth at 12%, or £40.7 million.That marks a slowdown from the 26% revenue growth Beeks reported for fiscal 2025, and it points to an uneven year. With first-half sales down 7% at £14.7 million, most of the annual total landed in the second six months.Underlying earnings before interest, taxes, depreciation and amortization rose about 18% to roughly £16.0 million, the company said, while underlying pre-tax profit increased about 13% to around £6.2 million. On a constant-currency basis, underlying pre-tax profit was up 18% at £6.5 million.Source: Beeks Financial Cloud FY26 trading update. FY26 figures unaudited. ACMRR shown on a constant-currency basis, with the FY25 comparative as at June 30, 2025.Infrastructure Spending Drains the Cash BalanceGross cash ended the year at £5.37 million, down from £7.36 million, while net cash fell to about £0.63 million from £6.96 million. The company attributed the drop to upfront investment, weighted toward the end of the year, to support new Exchange Cloud revenue-share deployments and added capacity in its Proximity Cloud and Private Cloud lines.Several of those deployments are now cash-flow positive, the company said. It framed the spending as the driver behind growth in annualized committed monthly recurring revenue, a measure it uses to gauge predictable future income.That metric, known as ACMRR, rose 15% on a constant-currency basis to £34.0 million at year-end, from £29.5 million a year earlier. Beeks said the figure gives it visibility into fiscal 2027, though revenue-share income ultimately depends on client trading activity the company does not control.Rivals Crowd the Exchange Infrastructure MarketBeeks competes in a field of firms selling connectivity, colocation and hosting to exchanges and trading firms. Options Technology went public in April with a direct connection to Japan's alternative venue JAX, three months after rival TNS disclosed its own link to the same exchange in January.Pico, which provides cloud infrastructure for financial markets across dozens of data centers, and Avelacom, a low-latency network operator, round out a group chasing the same institutional customers.AI Analytics Product Lands Three Early WinsBeeks also pointed to early traction for Market Edge Intelligence, the AI and machine-learning analytics platform it launched last year to monitor market and infrastructure data. The company said it signed three customers within months of launch: one of the world's largest banks, a North American exchange operator and a global financial services provider.Adoption of the product "has exceeded our expectations," Chief Executive Gordon McArthur said. The company said the wins signal demand from large financial firms, though it did not disclose contract values or how much revenue the platform brought in.Kraken and ASX Turn Profitable on Revenue ShareTwo more Exchange Cloud deployments, with Canada's TMX and South America's nuam, were announced during the year. Kraken, Beeks's first crypto exchange customer, moved to a second phase after selling out the first, the company said.Kraken and Australia's ASX now generate monthly profits under the revenue-share model, according to Beeks. Kraken has been building out its institutional plumbing ahead of a planned public listing, including a December deal that connected its matching engine to Avelacom's network.Beeks expects to release audited FY26 results in October. Until then, the headline figures remain unaudited, including the net cash balance that has fallen to a fraction of last year's level. This article was written by Damian Chmiel at www.financemagnates.com.

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