RedCloud Holdings plc reported first‑half 2025 revenue of $17.9 million, a 12% year‑over‑year increase from the $16.1 million it generated in the same period of 2024. The growth was driven by a stronger mix of high‑margin AI‑powered services and expanded demand in its core FMCG supply‑chain solutions, particularly in the Middle East where the company has recently launched its RedAI platform in Saudi Arabia.
Gross profit margin stood at 58.6%, up from 56.8% in the prior year. The improvement reflects a higher proportion of subscription‑based AI contracts and disciplined cost management, offsetting modest increases in support‑service expenses. Despite the margin expansion, the company reported a negative EBITDA of $38.5 million, a result of significant capital outlays to accelerate platform development and market expansion.
Full‑year 2025 revenue guidance was raised to $51–$53 million, and the company set a new $100 million revenue target for 2026. The guidance reflects management’s confidence that the RedAI platform will capture additional market share in emerging economies and that the partnership with NVIDIA will unlock new revenue streams.
RedCloud’s expansion into Saudi Arabia and its ongoing partnership in Turkey are key drivers of the company’s growth trajectory. The Saudi launch has opened a new customer base in a market that is actively modernizing its supply‑chain operations, while the Turkish partnership provides a foothold in a region with high FMCG demand and a growing appetite for digital solutions.
The balance sheet has been strengthened by a $65 million reduction in total liabilities, achieved through the conversion of shareholder loans to equity and the elimination of convertible debt. However, the current ratio remains at 0.17, indicating short‑term liquidity constraints that the company must manage as it continues to invest in growth.
CEO Justin Floyd emphasized the company’s strategic focus: “We doubled our data capture, launched in Saudi Arabia, and joined NVIDIA Connect. The FMCG industry still runs on spreadsheets and phone calls; we’re making it algorithmic. The infrastructure is built, now we scale it, which is why we’re targeting $100 million revenues next year.” Investors have responded cautiously, weighing the ambitious growth targets against the company’s current liquidity profile and unprofitable operating results.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.