Adjusted EBITDA More Than Doubled Year-on-Year on Continued Cost Discipline
FY 2026 Guidance of Full Year Cash EBITDA Break-even and Flat CARR
Regulatory News:
MotorK PLC (AMS: MTRK) ("MotorK", the "Group" or the "Company"), a leading SaaS provider to the automotive retail industry in the EMEA region, today announced its financial results for the first six months of the year ended on 30 June 2026 ("H1 26").
H1 26 FINANCIAL HIGHLIGHTS
- Committed Annual Recurring Revenue (CARR): €33.1 million at 30 June 2026, decreasing 7.5% versus €35.8 million in the same period last year.
- Annual Recurring Revenue (ARR): €30.2 million, compared with €32.3 million in H1 25 (-6.5%), reflecting the deliberate exit from low-margin contracts during the strategic refocus.
- Recurring Revenues: €14 million in the first six months of 2026, representing approximately 76% of total revenue and underlining the strength and predictability of the Group's recurring revenue model.
- Total Revenues: €18.5 million, compared with €20.3 million in H1 25 (-9%), impacted by planned legacy churn and extended OEM and dealer decision cycles.
- Adjusted EBITDA: €2.1 million, more than double the €1.0 million reported in H1 25, reflecting disciplined cost management and an improving revenue mix.
- Cash EBITDA: negative €0.8 million for the first six months, a c.69% year-on-year improvement from negative €2.6 million.
- Cost Efficiency: continued reduction of the operating cost base, driven by hiring restrictions, platform consolidation and AI-enabled productivity gains across delivery, support and engineering.
- Net Borrowing Position: €14.1 million at 30 June 2026.
COMMENTS ON H1 26 RESULTS FROM ZOLTAN GELENCSER, CEO AD INTERIM
The first half of 2026 confirmed that the disciplined choices we have made over the past eighteen months are translating into structurally better economics. Cash EBITDA was negative €0.8 million during the period and Adjusted EBITDA more than doubled year-on-year, while the Group continued to invest in the AI-native capabilities that are reshaping automotive retail. The European market showed encouraging signs of recovery in the last few months, but customer decision cycles remained extended and the operating environment stayed demanding. Against that backdrop, our priority is clear: convert a higher-quality, more focused revenue base into sustainable, profitable growth.
We continued to migrate retail customers onto our next-generation SparK platform and to scale our AI-powered Customer Data Platform, positioning MotorK to capture the growing demand for intelligent, data-driven solutions across the ecosystem.
MARKET CONTEXT
The European automotive market returned to growth in the first half of 2026, with EU new-car registrations up approximately 4% in the year to date, a marked improvement on the 1.9% decline recorded over the same period in 2025. The recovery nonetheless took place against persistent headwinds, including tariff-related uncertainty, geopolitical instability, intensifying competition and continued pressure on manufacturer profitability, keeping OEMs and dealers focused on cost discipline and efficiency.
These dynamics continue to reinforce the structural case for MotorK's offering. As dealers and manufacturers navigate margin pressure and an accelerating shift to electrified, digitally-led retail, demand continues to migrate toward cloud-based, AI-enabled platforms that consolidate fragmented systems, unify customer data and reduce operating cost. The continued investment by major industry players in customer data platforms and AI-driven retail tools underscores the direction of travel and validates MotorK's product strategy.
STRATEGIC AND OPERATIONAL HIGHLIGHTS
CARR stood at €33.1 million at 30 June 2026, reflecting two opposing dynamics that have characterised the Company's strategic transition. Net new CARR was negative in the first and second quarters of the year, driven by a concentration of pre-determined and M&A-related contract expiries and by the exit of legacy, highly-customised and non-core contracts. The Group enters the second half with a higher-quality, more scalable customer base and more close-to-customer processes and tools, with the aim of improving the adoption of our platform offering.
Commercial momentum in the second quarter was supported by disciplined execution on higher-value opportunities and by price-increase initiatives already in execution across several markets. The enterprise segment was a particular bright spot, anchored by a broader pipeline of OEM and large-account opportunities.
FINANCIAL PERFORMANCE AND COST OPTIMISATION
While top-line performance reflected market conditions and the impact of the strategic portfolio refocus, profitability reflected the Group's discipline, controls and execution. Adjusted EBITDA more than doubled year-on-year to €2.1 million, and Cash EBITDA improved by approximately 69% to negative €0.8 million, with the Group approaching a break-even position in the last months, confirming the path to sustained profitability.
Cost discipline remained central. The Group maintained hiring restrictions and realised efficiencies in licences, hosting and third-party costs, while continuing to embed AI-enabled productivity gains across engineering, delivery and support. These actions are expected to deliver further reductions in the cost base on a full-year basis.
COMMERCIAL MOMENTUM AND GEOGRAPHIC PERFORMANCE
Geographically, Italy remained the Company's largest and most resilient market, while Spain's performance was impacted by the phase-out of the long tail of the customer base acquired in 2022. France, Germany and Benelux reflected the planned phase-out of legacy engagements alongside a progressive return toward growth as the realigned commercial engine takes effect.
As of 30 June 2026, MotorK carried forward a qualified pipeline of €10 million, comprising €5.9 million in enterprise opportunities and €4.1 million in retail, with several high-value enterprise contracts in advanced stages. Management maintains good visibility over their expected conversion during the second half of the year.
SPARK PLATFORM AND AI-POWERED CUSTOMER DATA PLATFORM
MotorK continued to execute its product-led, AI-native strategy during the first half. The Group accelerated the migration of retail customers onto its unified SparK suite, harmonising the user experience across products and progressively embedding AI capabilities from conversational, "chat-with-the-product" assistance to autonomous, action-taking features that simplify day-to-day work for dealers and manufacturers.
In parallel, MotorK continued to scale its Customer Data Platform, an AI-powered decision engine that unifies first-party data across advertising, lead generation, CRM, DMS and aftersales. By turning fragmented data into actionable intelligence, the Customer Data Platform positions MotorK to address the growing demand for AI-enabled, data-driven solutions across the automotive retail ecosystem, and underpins the Company's ambition to move from a traditional software vendor to a frictionless, AI-enabled partner for its customers.
OUTLOOK
Looking ahead to the second half of the year, the Company expects its realigned commercial engine to deliver improved retention and to rebuild CARR growth from a higher-quality base, supported by new bookings and a growing enterprise pipeline. Based on the above comments and the results shown below, management now expects a close-to-flat CARR year-on-year growth in FY 26 and a full-year break-even Cash EBITDA position.
The Group continues to expect further efficiencies in its cost base on a full-year basis, as the benefits of platform consolidation, headcount discipline and AI-enabled productivity initiatives are realised in full. To support its growth ambitions and reinforce its financial flexibility, the Company is evaluating a range of financing options, and will provide further information in due course.
While the macroeconomic environment remains uncertain, MotorK's strategic choices over the past eighteen months have created a more agile, profitable and resilient operating model. The Company remains confident in its long-term outlook and its ability to deliver sustainable value creation through disciplined execution and a clear focus on product-led, AI-native growth.
NEXT PUBLICATION: Q3 26 TRADING UPDATE, 26 OCTOBER 2026
| H1 2026 UNAUDITED CONSOLIDATED PROFIT AND LOSS | ||
| In k€ | Jun-26 | Jun-25 |
| Revenues | 18,476 | 20,259 |
| Costs for customers media services | (3,094) | (3,993) |
| Personnel costs | (10,682) | (12,621) |
| R&D capitalization | 2,921 | 3,590 |
| Other costs | (5,499) | (6,220) |
| Total costs | (16,354) | (19,244) |
| EBITDA Adjusted | 2,122 | 1,015 |
| Exceptional income/(costs) | (457) | (793) |
| Stock Option Plan costs | (992) | (179) |
| EBITDA | 673 | 43 |
| Depreciation Amortization | (5,400) | (4,157) |
| EBIT | (4,727) | (4,114) |
| Finance costs (net of finance income) | (1,326) | (1,233) |
| Profit/(Loss) before tax | (6,053) | (5,347) |
| Corporate income tax | (244) | (118) |
| Profit/(Loss) for the period | (6,297) | (5,465) |
| H1 2026 UNAUDITED CASH FLOW STATEMENT | ||
| In k€ | Jun-26 | Jun-25 |
| Cash Beginning of the period | 3,656 | 3,362 |
| EBITDA Adjusted | 2,122 | 1,015 |
| Decrease (increase) in working capital | 650 | 691 |
| Operating free cash-flow | 2,772 | 1,706 |
| Taxes paid | (10) | (164) |
| Cash flow from investing activities tangible assets | (5) | (5) |
| Cash flow from investing activities R&D | (2,933) | (3,728) |
| Free cash-flow | (176) | (2,191) |
| Exceptional items | (419) | (833) |
| Cash-flow from investing activities M&A | 0 | 3,279 |
| Cash-flow from financing activities | (873) | (3,912) |
| Cash flow from equity movements | 2,547 | 5,456 |
| Others | (339) | (208) |
| Net increase (decrease) in cash | 740 | 1,591 |
| Cash End of the period | 4,396 | 4,953 |
| H1 2026 UNAUDITED STATEMENT OF FINANCIAL POSITION | ||
| In k€ | Jun-26 | Jun-25 |
| Tangible assets | 1,955 | 2,580 |
| Intangible assets | 41,923 | 43,760 |
| Fixed assets | 43,878 | 46,340 |
| Net working capital | (5,546) | (4,263) |
| Deferred tax liabilities | (1,132) | (1,265) |
| Employees benefit liabilities | (1,756) | (2,100) |
| Provisions | (157) | (157) |
| Total invested capital | 35,287 | 38,555 |
| Cash and cash equivalents | 4,396 | 3,656 |
| Financial assets | 257 | 255 |
| Financial liabilities | (18,761) | (18,277) |
| (Net financial)/net cash position | (14,108) | (14,366) |
| Net equity | 21,179 | 24,189 |
| H1 2026 UNAUDITED REVENUES BY PRODUCT AND SERVICES LINE | |||
| In k€ | Jun-26 | Jun-25 | y.o.y. change |
| SaaS platform | 14,557 | 15,585 | -7% |
| Digital Marketing | 3,303 | 4,020 | -18% |
| Other | 616 | 654 | -6% |
| Revenues | 18,476 | 20,259 | -9% |
| H1 2026 UNAUDITED RECURRING AND NON RECURRING REVENUES | |||
| In k€ | Jun-26 | Jun-25 | y.o.y. change |
| SaaS Recurring | 13,963 | 15,291 | -9% |
| Other recurring | 69 | 502 | -86% |
| Recurring revenues | 14,032 | 15,793 | -11% |
| % Recurring on Revenues | 76% | 78% | -2% |
| Contract start-up | 594 | 293 | 103% |
| Digital | 3,266 | 3,533 | -8% |
| Other | 584 | 640 | -9% |
| Non Recurring revenues | 4,444 | 4,466 | 0% |
| Revenues | 18,476 | 20,259 | -9% |
| H1 2026 UNAUDITED REVENUES BY GEOGRAPHY* | |||
| In k€ | Jun-26 | Jun-25 | y.o.y. change |
| Italy | 12,804 | 13,464 | -5% |
| Spain | 1,465 | 1,854 | -21% |
| France | 2,565 | 2,702 | -5% |
| Germany | 968 | 1,026 | -6% |
| Benelux | 674 | 1,213 | -44% |
| Revenues by geography | 18,476 | 20,259 | -9% |
*Revenues broken down by the countries in which the legal entities are established, independently of the geographical location of the customers. | |||
| H1 2025 UNAUDITED CASH EBITDA | ||
| In k€ | Jun-26 | Jun-25 |
| EBITDA Adjusted | 2,122 | 1,015 |
| R&D Capitalization | (2,921) | (3,590) |
| Cash EBITDA | (799) | (2,575) |
Forward-looking information and disclaimer
This press release may include forward-looking statements. Other than reported financial results and historical information, all statements included in this press release, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, may be deemed to be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "plans", "believes", "expects", "aims", "intends", "anticipates", "estimates", "projects", "will", "may", "would", "could" or "should", or words or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are based on our current expectations, projections and key assumptions about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MotorK's ability to control or estimate precisely, such as future market conditions, the behavior of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.
Important information
This press release contains information within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014).
ABOUT MOTORK PLC
MotorK (AMS: MTRK) is a leading software as a service ("SaaS") provider for the automotive retail industry in the EMEA region, with approximately 300 employees and offices in eight countries (Italy, Spain, France, Germany, Belgium, the UK, and Israel). MotorK empowers car manufacturers and dealers to improve their customer experience through a broad suite of fully integrated digital products and services. MotorK provides its customers with an innovative combination of digital solutions, SaaS cloud products and the largest R&D department in the automotive digital sales and marketing industry in Europe. MotorK is a company registered in England and Wales. Registered office: 5th Floor One New Change, London, England, EC4M 9AF Company Registration: 9259000. For more information: www.motork.io or investors.motork.io.
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Contacts:
FOR FURTHER INFORMATION
MotorK Investor Relations
Boaz Zilberman
boaz.zilberman@motork.io
+972 532 819 810
