This article first appeared on GuruFocus .
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Annualized Contract Value (ACV):$260 million, up 13.9% year-over-year; organic ACV grew 8.6% (11.1% in constant currency) excluding Linkurious.
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Nuix Neo ACV:$78.5 million, up 179% year-over-year, across 135 customers (up from 75 in the prior year); represents 30% of total ACV.
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Revenue:$263.2 million, up 18.8% year-over-year (17.1% excluding Linkurious; 20.3% in constant currency).
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Net Dollar Retention (NDR):105.2%, up from 101% at the half-year.
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Churn:6.6% for the year, improved from the prior year; underlying churn approximately 5% excluding one large APAC account.
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Adjusted Management EBITDA:$59.8 million, up 60.4% year-over-year (55.1% excluding Linkurious); margin expanded to 22.7% from 16.8%.
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Statutory NPAT:$16.4 million, versus a $9.4 million loss in the prior year.
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Underlying Cash Flow:$51 million, up 154% year-over-year; free cash flow of $37.4 million, up from $4 million.
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Net Cash Position:$49.9 million at year-end, up 24.8% year-over-year, post Linkurious acquisition.
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Research & Development (R&D) Spend:$57.8 million, up 5.4% year-over-year, representing 22% of revenue.
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Multiyear Deals:Rose to 35% of revenue, up from 27% in the prior year.
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Linkurious Contribution (72 days post-acquisition):ACV of $12 million, revenue of $3.8 million, and EBITDA of $2 million.
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FY27 Guidance:ACV expected in the range of $285 million to $300 million; adjusted management EBITDA expected to be similar to FY26 due to a one-off $15 million R&D accelerator investment.
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Release Date: August 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Nuix Ltd ( NXLLF ) delivered strong financial performance in FY26, with ACV reaching $260 million, revenue up 18.8%, and adjusted management EBITDA up 60.4% to $59.8 million, demonstrating significant operating leverage.
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Nuix Neo ACV grew 179% to $78.5 million across 135 customers, now representing 30% of total ACV, with a strong migration pipeline heading into FY27.
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Underlying cash flow increased 154% to $51 million, and the company ended the year with a strong net cash position of $49.9 million, post the Linkurious acquisition.
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The Linkurious acquisition is on track, contributing $12 million in ACV and $2 million in EBITDA in just 72 days, with early cross-sell success and the full team retained.
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The company has made decisive strategic changes, including a go-to-market restructure, unified product and technology, and a $15 million R&D accelerator investment, positioning it for a larger addressable market in unstructured data intelligence.
Negative Points
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Nuix Ltd ( NXLLF ) experienced a decline in Discover ACV, driven by a loss of a large SaaS contract, and the company has had to establish a dedicated commercial model to address this lagging segment.
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Asia Pacific was broadly flat, impacted by the loss of a key account, and the company has combined EMEA and APAC into a single international sales grouping to address growth.
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Net dollar retention improved to 105.2%, but churn increased to 6.6% in the second half due to a single large account formally leaving, though underlying churn was approximately 5%.
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FY27 adjusted management EBITDA is expected to be similar to FY26, as the $15 million R&D accelerator investment will offset further operational leverage, delaying profit growth.
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The company faces currency headwinds, with organic ACV growth of only 8.6% (or 11.1% in constant currency), and the outlook for ACV growth is expected to be at lower percentage rates due to a higher base.
Q & A Highlights
Q: Can you provide more detail on the migration pathway into Neo and the potential ACV uplift from a full suite sale, including AI tools and Linkurious? A: John Ruthven, CEO: The Neo contribution comes from both migrations and new customers. While we haven't fully modeled the uplift from AI-enhanced capabilities and Linkurious, we expect it to be a significant part of the growth opportunity. The migration path isn't exclusive; some customers go straight from components to full Neo, while others take a step-by-step approach. We are seeing existing Neo customers start to purchase additional AI services, indicating increased upsell and cross-sell opportunities once on the platform.
Q: What is the outlook for the three geographic segments, and how will the new structure address the softness in Asia Pacific and Discover? A: John Ruthven, CEO: We have restructured from three geographic segments into two regional sales teams, combining APAC and EMEA into a single international go-to-market, and breaking out Discover into its own dedicated go-to-market. This is specifically designed to return both APAC and Discover to growth. APAC was broadly flat this year, and Discover was slightly down, so these structural changes are intended to address those areas.
Q: Can you provide more perspective on the size and strategic fit of the Discover business, and how you plan to return it to growth? A: John Ruthven, CEO: Discover is roughly a $50 million business, and we want to return it to growth. It's positioned as a specialist capability in eDiscovery. We see a significant opportunity as a major competitor is leaving the on-premise world. The $15 million R&D accelerator investment includes improving Discover's UI/UX and agentic capabilities, which we expect will help us maintain and grow with existing customers while also winning new ones.
Q: Where do you see the biggest threats from AI, and where are you focusing your efforts to defend the business? A: John Ruthven, CEO: We are more focused on where AI helps us grow rather than where it is a threat. Our competitive moat is strengthened by embracing AI. Our BYO AI offering allows customers to select their LLM of choice and use our platform to provide defensible, curated data. We are also developing an MCP layer so customers can integrate us into their enterprise architecture as the data intelligence layer, allowing them to use their own AI on top of our curated unstructured data.
Q: How has the big contract win in Germany changed your brand recognition and product positioning in the EMEA region? A: John Ruthven, CEO: Our brand recognition remains very strong in EMEA, particularly in the DACH region among highly regulated government agencies like tax authorities and law enforcement. The win in Germany has been significant, and we count a number of provincial tax authorities as customers in addition to the national body. Note that the strong EMEA ACV growth of 23% includes the contribution from Linkurious.
Q: How are you thinking about the go-forward operating leverage of the business, particularly into FY28 and beyond? A: Peter McClelland, CFO: Our strong mindset is to grow revenue faster than costs, which is a key theme in this year's results. The guidance for FY27, which keeps EBITDA around the same level despite the $15 million accelerator spend, implies we are continuing to see ongoing operating leverage. Driving operating growth while converting it into strong cash flows remains a key focus of our strategy.
Q: Can you elaborate on the margin profile for the AI-related upsell opportunities? Should we expect higher pass-through costs? A: John Ruthven, CEO: No, the uplift generally carries the same level of margins. We are seeing growth from component to foundation, but also from components directly to full Neo. Once customers are on the Neo platform, we see increased upsell and cross-sell opportunities, but the margins are maintaining where we have been looking at historically.
Q: Are there any signs that the downsell trend from large-scale investigations will normalize or stabilize in the year ahead? A: John Ruthven, CEO: We are not seeing any additional or change in trends. We saw downsells from larger service providers as member organizations headed in different directions. We are not predicting any major structural changes to the way customers are buying our product today. There will always be natural step-downs at the end of a project, but new projects will start up, and global organizations will have differences in buying patterns year on year.
Q: Can you clarify the use cases for Nuix Discover, given the examples of a global trader and a major bank? A: John Ruthven, CEO: It is still broadly speaking an eDiscovery product. Whether it's used by a large regulated financial services organization, a dedicated legal services company, or a law firm, the basic use case remains eDiscovery.
Q: What is the expected impact of the $15 million R&D accelerator investment on FY27 results, and when will benefits be realized? A: John Ruthven, CEO: The $15 million one-off investment targets five areas: enterprise integration, agentic AI, cloud platform acceleration, unified UI/UX, and accelerated innovation cadence. This investment will offset the underlying operational leverage in FY27, keeping adjusted management EBITDA similar to FY26. The benefits are expected to contribute to revenue growth from FY28, as it positions us to capture demand already emerging in our pipeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
