Cirata (LSE:CRTA), the data migration software company formerly known as WANdisco, reported a sharp rise in Revenue and bookings for 2025 in results published on 31 March 2026, but also flagged a material uncertainty over its ability to continue as a going concern. The mixed message has put the spotlight on whether it can reach cash break-even this year.

What the company does

Cirata develops software that moves large volumes of data between systems without interrupting use of the source. Its main product is Live Data Migrator, used by enterprises shifting data to cloud platforms. After the sale of its DevOps business, the company reports mainly on its Data Integration activities, and it sells both directly and through partners such as IBM.

Latest developments

For the year ended 31 December 2025, total revenue rose 77% to $13.6 million from $7.7 million. Continuing operations, mainly Data Integration, contributed $11.9 million, up 157%, while the divested DevOps Business added $1.7 million. Total bookings were $13.9 million, up 96%, with Data Integration bookings of $13.2 million, up 181% and the highest since 2017, including $9.8 million in the fourth quarter.

LSE:CRTA signed its largest direct contract to date, worth $3.1 million over three years with a US insurer. Its largest OEM contract, worth $6.7 million over three years, runs through IBM. Cirata reaffirmed guidance for 2026, targeting positive Cash Flow in the first quarter and cash break-even for the full year, subject to the timing of bookings and working capital.

Financial picture

The net loss for 2025 narrowed to $7.1 million from $13.5 million, the operating loss from continuing operations fell to $4.6 million and the adjusted EBITDA loss was $3.8 million compared with $14.4 million. Total cash overheads fell 22% to $16.1 million, with an annualised run rate of $12 million to $13 million at the year end. However, cash was only $4.0 million at 31 December 2025, down from $9.7 million, and operating cash outflow was $8.1 million. Including $3.4 million of short-term receivables, the figure is $7.4 million. The directors said that under a severe but plausible downside, cash would fall to minimal levels by 31 October 2026. LSE:CRTA has said that from 2026 it will use annual contract value as its main growth measure rather than annual recurring revenue.

Sector and index context

Cirata sits among the software names on the FTSE AIM All Share Index and has a history that makes investors cautious, following earlier governance and revenue issues at LSE:CRTA when it traded as WANdisco. Data migration is a growing need as organisations move workloads to the cloud, and artificial intelligence projects have increased the importance of moving and preparing data. The market includes large cloud providers with their own migration tools, so partnerships are significant.

Key risks

The Going Concern uncertainty is the dominant risk. If bookings arrive late or customers pay slowly, the company may need additional financing, which could dilute shareholders. A concentration of revenue in a small number of large contracts, including an OEM channel via IBM, means timing matters greatly. Competition from hyperscalers and the long sales cycles of enterprise software could slow growth.

What to watch next

Investors will look at later 2026 trading updates for evidence of cash break-even and fresh bookings, the annual contract value measure, and any funding announcement. Updates on the IBM channel and further direct contracts will also be watched.