Tribal Group reported preliminary financials for the fiscal year 2025, with total revenue reaching £92.5 million, representing a 4% increase over the previous year. Adjusted EBITDA rose by 8% to £17.5 million, reflecting what the company described as improved operational performance across its business divisions.
The company pointed to stronger recurring income from its cloud and subscription services as the primary driver of growth. Subscription and cloud revenue increased by 32%, supporting expansion in the Student Information Systems division as clients moved away from traditional support and maintenance arrangements. Tribal said the roll-out of its HEFS subscription model expanded recurring revenue and annual recurring revenue, with the majority of its higher education customers now on the subscription model. Annual recurring revenue for the fiscal year reached £63.3 million.
Tribal’s Etio division also contributed to the company’s improved margins. Management said strategic changes and cost-efficiency measures implemented in 2024 helped support margin gains in Etio even as demand remained soft. For the year, gross profit was reported at £46 million and net income was £8.9 million.
Looking ahead, the company provided guidance for fiscal 2026 that projects revenue of £93 million and adjusted EBITDA of £17 million. Tribal said that trading in fiscal 2026 has begun in line with the expectations set by its board.
Management also flagged a specific risk to timing for certain contracts in the Etio business, noting that the situation in the Middle East may affect when some deals proceed.
Key takeaways
- Revenue for fiscal 2025 rose 4% to £92.5 million, and adjusted EBITDA increased 8% to £17.5 million.
- Subscription and cloud revenue climbed 32%, with annual recurring revenue reaching £63.3 million following the HEFS subscription roll-out.
- Etio's margins improved due to strategic and cost measures despite soft demand; gross profit was £46 million and net income £8.9 million.
Outlook and uncertainties
- For fiscal 2026, Tribal expects revenue of £93 million and adjusted EBITDA of £17 million, and said trading has started in line with board expectations.
- The company warned that the situation in the Middle East could affect the timing of some Etio contracts.