Dotdigital, the UK-based marketing automation provider, recorded revenue of £90.9 million for fiscal year 2026, an increase of 8% compared with the previous year. The company said this outcome was in line with market expectations for the period.
Management highlighted that organic revenue growth encountered headwinds. Those pressures included the departure of a low-margin contract and more difficult year-over-year comparisons, which weighed on the underlying organic growth rate.
At the same time, Dotdigital noted that acquisitions completed during the period contributed positively to total revenue. The purchases of Alia and Social Snowball supported overall top-line expansion through strong annual recurring revenue growth, according to the company.
Product development was also a focal point. Dotdigital expanded its AI-enabled product set and said it integrated those capabilities across the customer lifecycle, positioning the technology within its broader offering.
On margins, the firm reported an improvement in gross margin that management attributed to a change in revenue mix. Revenue shifted toward higher-margin streams, specifically the company’s core customer experience offerings and its data platform, both of which produce recurring revenues.
Looking ahead, Dotdigital enters fiscal 2027 with what it described as greater revenue visibility and a larger base of recurring revenue. The company indicated it expects to meet market expectations for the coming fiscal year despite a mixed market backdrop.
Management also identified broader market opportunities and stated an aim to accelerate organic growth over the medium term. The company did not provide additional numerical targets in its statement.
Takeaway: Dotdigital delivered modest revenue growth for fiscal 2026, driven by acquisitions and product enhancements that supported recurring revenue and improved margins. The company is targeting faster organic growth going forward while maintaining guidance to meet market expectations for fiscal 2027.