10 March 2026

Dotdigital Group plc

("Dotdigital" or the "Group")

Interim results for the six months ended 31 December 2025

Dotdigital Group plc (AIM: DOTD), the leading provider of an AI-powered customer experience and data platform (CXDP) for intelligent, personalised marketing at scale, announces its unaudited interim results for the six months ended 31 December 2025 ("H1 FY26").

Financial Highlights

Operational Highlights

Post-Period Highlights

Milan Patel, Chief Executive Officer of Dotdigital, commented:

"The Group delivered a solid first half against a strong comparator, with continued double‑digit growth in core ARR, improving revenue quality and resilient profitability. We continue to broaden the CXDP through disciplined innovation and M&A, with the post-period acquisition of Alia further strengthening our ability to help customers capture, activate and monetise audiences across the lifecycle. While customers remain cost‑conscious, demand for integrated platforms with clear ROI remains strong, and we remain well positioned to execute on our strategy for the second half and beyond."

Analyst presentation

Management will host a virtual results presentation and Q&A session for analysts at 09.00 GMT today, Tuesday 10 March 2026. Analysts wishing to attend should contact dotdigital@almastrategic.com for details.

Investor presentation

Management will also host a virtual results presentation and Q&A session open to all existing and potential shareholders via the Investor Meet Company platform at 12.00 GMT on Thursday 12 March 2026. Investors can register here: https://www.investormeetcompany.com/dotdigital-group-plc/register-investor

Notes

¹ Consensus at the time of the trading update: Revenue £91.9m, Adjusted EBITDA £29.1m, Adjusted PBT £20.0m

² Organic excludes Social Snowball, acquired June 2025

³ Normalised for the non-renewal of the non-core low-margin CPaaS contract announced 26 June 2025

^{4 Cash EBITDA is an alternative performance measure and is defined as earnings before interest, taxation, depreciation and amortisation, adjusted to exclude material non-cash expenses, including share-based payments. Cash EBITDA is not a measure defined under IFRS and may not be comparable with similarly titled measures used by other companies.}

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About Dotdigital

Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel marketing automation technology to marketing professionals. Dotdigital's customer experience and data platform (CXDP) combines the power of automation and AI to help businesses deliver hyper-relevant customer experiences at scale. With Dotdigital, marketing teams can unify and enrich their customer data, identify valuable customer segments, and deliver personalised cross-channel customer journeys that result in engagements, conversions, and loyalty.

Founded in 1999, Dotdigital is headquartered in London with offices in Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150 countries.

Operational Review

Introduction

Dotdigital delivered a solid first half against a strong comparator period, with the core CXDP continuing to grow and the quality of revenue strengthening. Forward-looking contracted ARR increased, reflecting sustained demand for integrated platforms that help marketers unify data and personalisation across channels and evidence ROI clearly, while mix improved as a greater proportion of Group revenues came from recurring CXDP subscriptions.

Dotdigital has been steadily broadening its CXDP, combining organic innovation with disciplined M&A to expand workflow coverage and deepen customer value. The post-period-end acquisition of Alia is an important milestone in that strategy, strengthening the platform's ability to help customers grow and activate first- and zero-party data and reinforcing the Group's position in the Shopify ecosystem. With Alia added to the portfolio, Dotdigital is extending coverage at the earliest point in the customer journey, strengthening data capture and activation, and reinforcing its ability to help customers drive measurable outcomes across channels.

The acquisition of Alia, alongside the additions of Fresh Relevance and Social Snowball, reflects the Group's focused transition from a single-product email marketing platform into a diversified, multi-product business with an expanded international presence. The progress of this transition is evident in the Group's key operating metrics. Since FY23, partner‑connected ARR has increased from approximately 50% to well over 60% and US‑originated ARR has doubled from approximately 15% to more than 30%, while the full proportion of ARR generated outside the UK now stands at approximately 40% of Group ARR, up from 25%. Taken together, these developments have supported a significant expansion in the Group's scale: ARR has grown from £48.9m at the start of FY23 to over £81m following completion of the Alia acquisition, while adjusted profit before tax margins have been maintained consistently above 20% per annum.

This scale and mix provide a strong foundation for the future. As AI-enabled workflows become mainstream, the winners will be the platforms that let marketers move faster without sacrificing trust, control or accountability. Dotdigital combines high-quality data and consent management, enterprise-grade governance, deep ecosystem integrations and owned delivery infrastructure that protects sender reputation and inbox placement with an expanding set of capabilities across the customer lifecycle, so customers can execute sophisticated, personalised engagement at scale with confidence. The Board believes the Group's model remains durable as the market evolves.

The Group continues to prioritise high-quality, forward-looking contracted revenues and margin performance, supporting disciplined reinvestment in product innovation and go-to-market initiatives, while maintaining discipline in a mixed macro environment.

Financial Review

Core CXDP performance and quality of revenue

The core CXDP business remains the primary driver of value creation. Forward-looking contracted ARR from the core CXDP business increased 13% to £75.4m (H1 FY25: £67.0m).

The growth in ARR consisted of core CXDP net growth of £4.3m; acquired Social Snowball ARR of £4.1m plus subsequent Social Snowball net growth of £0.6m and negative currency movements of £0.8m. New logos in the period include the British Royal Air Force, two further professional Rugby league clubs in our ANZ region, Save the Children, PKF Littlejohn, FujiFilm, Helly Hansen, Loughborough University and Serco.

Customer value indicators also improved, with gross retention up c. 2 percentage points and net retention up c. 1 percentage point year-to-date, supported by lower churn as the elevated administration-related churn seen 12 to 18 months ago continued to unwind.

Recurring revenue from the core CXDP business recognised in the period increased 11% to £37.3m (H1 FY25: £33.6m) and represented 84% of total revenue (H1 FY25: 80%).

Total Group revenue, including the low-margin CPaaS business, increased 4% to £44.2m (H1 FY25: £42.4m) and 9% on a normalised³ basis (3% on an organic normalised basis). The increase reflects continued growth in the core CXDP business, partly offset by expected declines in the CPaaS business, following the previously announced Board's planned non-renewal of a non-core low-margin CPaaS contract, and the unwind of the strong H1 FY25 comparator. FX headwinds impacted performance across the period on an actual currency basis and are expected to be even stronger in the second half. On a constant-currency basis, growth rates in the period are approximately 1% higher than those highlighted.

Average revenue per customer (ARPC) excluding Social Snowball increased 7% to £1,968 per month on the prior half year after being normalised for the planned non-renewal of the low margin customer announced during Summer 2025.

Customers remain cost conscious and sales cycles remain longer, largely reflecting the Group's continued progress into higher-value deployments where buying decisions involve more stakeholders and a broader scope of rollout, although this has been stable over the last 12 months. Ongoing stack consolidation remains a net opportunity for Dotdigital as organisations prioritise fewer, more effective platforms with clear ROI.

Resilient profitability against strong comparator

The Group's adjusted PBT for the period was £8.9m (31 December 2024: £10.0m), a margin of 20% (31 December 2024: 24%). As highlighted over the previous year, the comparative period was an unusually strong comparator in both the core CXDP business and the low‑margin CPaaS business as a result of final contributions from an exited CPaaS contract and exceptional SMS volume tied to specific transactional notification campaigns in H1 2025. In addition, go to market investment were accelerated in Social Snowball which are expected to benefit the growth rate in the second half and beyond.

Statutory profit before tax for the period was £6.2m (31 December 2024: £8.4m) after exceptional and adjusting items of £2.7m (31 December 2024: £1.6m); the increase in these items largely being as a result of Social Snowball acquisition related items.

The effective tax rate on the statutory PBT for the period was unusually high at 30% (31 December 2024: 25%), with the current period being adversely impacted by approximately 3% as deferred tax charges were incurred as a result of share award lapses occurring due to under performance in the share price which are not expected to recur with such material effect in future periods. The effective tax rate is further impacted by approximately 3% as tax losses throughout the Group were materially utilised during the first half of FY25. In turn this results in an adjusted diluted EPS of 2.26 pence per share for the period (31 December 2024: 2.52 pence per share). All margins are expected to return to market expected levels in the second half of FY26.

The Group embarked on its previously announced £3m share buyback during the period, completing on £1.2m of this in the period and the balance shortly after the period end.    

Business Review: Platform strengths

Marketing teams continue to prioritise platforms that can prove ROI, unify customer data with activation across channels, and operate with strong governance as privacy expectations and regulation evolve. Rapid progress in AI is reinforcing the premium on orchestration, workflow automation and embedded measurement, so teams can move faster while keeping performance, trust and accountability at the centre of execution.

Dotdigital's customer experience and data platform (CXDP) sits at the centre of that workflow, bringing together customer data, segmentation and automation with cross-channel execution across email, SMS, WhatsApp, push and web experiences. The Group has also broadened workflow coverage through adjacent capabilities within the portfolio, including Fresh Relevance for personalisation, Social Snowball for influencer and advocacy-led acquisition, and, post-period-end, Alia for on-site conversion and audience growth.

As AI adoption accelerates, the Board believes these structural strengths become more valuable:

This combination supports durable recurring revenues and a platform that is difficult to replicate.

Acquisitions

Alia

Post period end, on 4 March 2026, the Group announced the acquisition of Alia Software Inc., an AI-powered pop-up and email and SMS audience growth tool built exclusively for Shopify merchants.

Alia is strategically important because it strengthens Dotdigital's platform at the earliest moments of the customer lifecycle by converting anonymous website visitors into known, consented audiences and capturing higher-quality first-party and zero-party data that can be activated across the Group's CXDP. It also accelerates the Group's product roadmap with a best-in-class on-site conversion and list-growth capability, deepens the Group's Shopify ecosystem presence and expands distribution via the Shopify App Store.

Alia has demonstrated strong momentum, serving 2,700+ customers with a 4.7/5 rating on the Shopify App Store and for the financial year ended 31 December 2025 ("FY25"), Alia reported recognised revenue of $4m, with ARR at 31 December 2025 in excess of $8m (31 December 2024: $1m). In FY25 Alia reported cash EBITDA⁴ in excess of $1m. Alia had net assets of $1.2m at 31 December 2025 and was acquired debt-free. All figures are unaudited.

The Board believes Alia expands the Group's workflow coverage in a way that supports durable expansion economics: list growth drives larger addressable audiences, which can increase downstream automation value, messaging volumes, package upgrades and cross-sell into adjacent capabilities across the platform.

Integration is expected to follow a phased approach, enabling the Group to deliver incremental product benefits while maintaining continuity for existing Alia customers.

The initial consideration for the Acquisition totalled $30m, with a total maximum consideration of up to $60m dependent upon future performance. All consideration is payable in cash, funded from existing cash reserves, and the Acquisition is expected to be earnings-enhancing for the first 12 months of consolidation. Should performance targets be achieved, the maximum consideration payable would equate to two times ARR.

Alia will be integrated into the CXDP through a phased approach and Dotdigital's core and ancillary capability, including messaging, will be embedded into and bundled with Alia's offering, allowing the Group to deliver incremental product benefits while maintaining service continuity for existing customers.

Social Snowball

Following its acquisition in late June 2025, Social Snowball has performed well and the integration is progressing to plan. ARR is up approximately 30% on an annualised basis since acquisition, with an acceleration in growth rate expected as go-to-market investments take effect. Social Snowball ARPC per month increased from US$319 per month on acquisition to US$348 per month in December. Social Snowball generated £2.3m of recurring revenue in the first half, compared to approximately £1.2m in same half prior to acquisition.

The Group increased investment in go-to-market capability during the Period and early H2 performance provides confidence in enhancing growth rates through the second half.

Regions

All regions have maintained growth on a constant currency basis and the Group will continue to focus its resources on capitalising on momentum in higher growth regions or subregions. In particular, the Group aims to maximise the scale that the Group now has in the US, circa 30% of ARR, in North America post the acquisitions of Social Snowball and Alia. Post recent acquisitions and complexities in reporting of the Group's growing number of multi region customers, the Group is reviewing its methodology in respect of regional growth rate reporting to ensure consistency. Full reporting on this will be available in the full year financials.

Product innovation

Product development continued to reflect customer demand for sophisticated yet easy-to-use platforms that unify data and personalisation across channels and deliver measurable ROI. Functionality recurring revenues grew by 20% on HY-25 or 9% on an organic basis. During the period, the Group delivered enhancements across the product suite, including continued strengthening of WinstonAI, further momentum in WhatsApp adoption and the launch of CreatorSearch, a creator discovery feature, within Social Snowball.

WhatsApp

WhatsApp adoption continued to build, with users sending 2.3x more WhatsApp messages compared to H2 FY25 (128% growth). Black Friday and Cyber Monday drove the biggest ever WhatsApp month in November 2025, with growth of more than 400% versus the prior seasonal period.

WinstonAI and monetisation

WinstonAI is integrated into the CXDP to help customers work faster and drive stronger outcomes. AI capabilities are available across packages, with more advanced features and higher usage allowances unlocked at higher tiers, reflecting the greater data and workflow complexity of larger deployments. Most larger customers typically adopt the premium packages from day one. As customers use these capabilities to improve performance, this can support expansion in contacts and associated subscription fees, which in turn can drive increased messaging usage and recurring volume-based fees.

Loyalty

The Group's loyalty product is now being tested in production environments by early adopters, with positive results being generated for customers. The product will complement the Group's core Dotdigital CXDP offering, adding native loyalty programme functionality that is deeply embedded with a brand's contact data. General availability is expected in July.

Roadmap focus

Looking ahead to H2 FY26 and beyond, the Group will focus product innovation investment on strengthening data, AI with the release of MCP servers and 3 specific AI agents (analytics, segmenting data and campaign creation) and further technology partner integrations, alongside continued enhancements to internal infrastructure and processes.

Partnerships and integrations

The partner ecosystem continues to deepen, supporting adoption and expansion across the platform. Revenue connected to integration partners grew 5% versus the prior year. Standout organic growth came from Shopify of 44% or 118% when also including the impact of Social Snowball. Shopify is now the Group's second largest connected integration partner by revenue, representing 35% of connected partner revenues, behind Adobe/Magento. Microsoft Dynamics grew 5% and the ERP connection to NetSuite grew 5%.

The Group is particularly enthused with the impact of combining Alia's network of Email and Marketing agency partners with the existing network of technology and web agency partners, which are expected to bring further success for the core product, including the new Loyalty product in the Shopify ecosystem as well as for Alia's product outside of Shopify for both commerce and non-commerce customers. Partners are very impactful in helping Dotdigital expand its pipeline and increasing conversion rate.

Operations and scalability

During the period, the Group continued to invest in strengthening its operational foundations to support scaling, while maintaining discipline on costs and prioritising initiatives that improve execution and customer outcomes.

The Group has taken steps to streamline its EMEA go-to-market function to ensure an optimised structure and clearer accountability. The efficiencies gained will be assessed for application across higher-growth regions during H2, alongside other initiatives to support consistent execution and scalability.

This will be led by a Chief Revenue Officer, a new role intended to centralise and align go-to-market activities across regions, with a focus on expansion, retention and enhancing customer lifetime value. The Group is in the final stages of making this appointment and will provide an update in due course.

Alongside commercial execution, the Group's ongoing transformation of systems and processes continued, with major progress made on its CRM replacement programme. This is intended to improve data quality, reporting and workflow efficiency across the organisation, supporting more consistent execution and scalability as the Group grows internationally.

Current trading and outlook

Trading continues to be in line with the Board's expectations.

The Board remains confident in the Group's prospects and expects to deliver FY26 results in line with constant currency market expectations, supported by the high-visibility recurring revenues and a strong and growing product portfolio. The Group's cash position and cashflow generation remains strong, with cashflow generation being second half weighted in line with previous years. Cash at 31^st December 2025 totalled £36.1m prior to the Alia acquisition for initial consideration of $30m. A modest overdraft facility is being established to provide prudent support for mid-month working capital needs, should it be required.

Dotdigital has built a powerful customer experience and data platform that helps marketers turn first- and zero-party data into measurable outcomes at scale. With WinstonAI integrated across key workflows, customers can plan, execute and optimise cross-channel engagement across email, SMS, WhatsApp, ads and web, with governance, deliverability and performance measurement embedded as standard. The Board believes this combination of capability and "under-the-bonnet" strength positions Dotdigital to remain central to customers' marketing stacks as requirements become more demanding and execution moves further towards automation. Despite macro pressures including FX volatility, customer cost sensitivity and brand consolidation, which presents both opportunities and challenges, with disciplined M&A having provided extending workflow coverage, the Group is well placed to benefit from ongoing consolidation onto fewer, more effective platforms, supporting continued ARPC expansion and strong retention over time.

The Group remains well positioned to deliver sustainable growth and strong cash generation through a differentiated, ROI-driven offering, disciplined investment and a continued focus on high-quality recurring revenues.