Intercede reports slight revenue dip but remains confident amid growing momentum

Leicestershire-based cybersecurity software firm Intercede has issued a trading update for the six months to 30 September 2025 (H1 FY26), reporting a slight decline in revenue but maintaining confidence in its growth prospects.

The company expects revenues of approximately £8.21 million, which represents a year-on-year decrease of 3.9 percent, or 4.2 percent on a constant currency basis.

Despite the dip, certain elements of revenue showed growth. The company said this “underlined the quality of the business being won and the positive momentum that the Group has generated in broadening its client base”.

Licence revenue increased by 65.5 percent to £1.44 million. This includes £1.08 million from perpetual licence income, up 63.6 percent from the same period last year, and £0.36 million from subscription licence income, which grew by 71.4 percent. Expanding subscription-based revenues is a key strategic priority for Intercede.

The business faced temporary delays in some contract awards, particularly in the US federal market. These delays, combined with exchange rate impacts and changes in revenue mix, affected reported US dollar revenues in the second quarter.

Nevertheless, the company recorded progress in contract and renewal orders in Q2, which totalled $3.2 million.

Klaas van der Leest, CEO of Intercede, said: “The Group continues to build momentum through a geo-diversified pipeline, and the breadth of our new contract orders is a clear reflection of that progress. The Group enters H2 FY26 with momentum and a growing revenue backlog for FY27 and beyond.

“As we move into the second half of the year, the Group remains focused on converting pipeline opportunities. Given the underlying momentum being seen by the Group, the Board remains confident in the Group’s short, medium and long-term growth trajectory and maintains that full-year financial performance will be in line with current market expectations.”