Results land after a year of change

dotdigital Group, the London-based Marketing automation software provider and FTSE AIM UK 50 constituent, published audited results for the year to 30 June 2026 at 07:00 on 3 November 2026. (LSE:DOTD) The headline numbers were broadly as the company had signalled: Revenue rose 8% to £90.9m, adjusted EBITDA increased 10% to £29.4m and the Margin held at 32%. On the LSE delayed price for the 3 November session, the shares stood at 53.9p, up 1.89% on the day.

This article looks at three specific questions the statement raises for the year ahead: how much cash the group now holds, what it still owes on earn-outs, and what consensus expects for FY27.

Cash halved after the Alia purchase

Closing cash was £17.1m, down from £36.2m a year earlier. (LSE:DOTD) The company attributes the fall to the initial US$30.0m payment for Alia, a £3.7m Dividend and a £3.0m share buyback. Net cash generated from Operating Activities was £19.0m, compared with £22.3m in FY25.

Adjusted profit before tax rose only 2% to £19.4m, and adjusted Diluted Earnings per Share increased 3% to 4.94p. (LSE:DOTD) Management explains the gap between EBITDA and pre-tax growth largely by lower interest income, as rates fell and cash was redeployed into acquisitions. On our reading, that trade-off is the clearest financial cost of the M&A programme so far.

Earn-outs still to be paid

The remaining cash is earmarked, according to the company, for anticipated earn-out payments on Alia and Social Snowball over the next couple of years. (LSE:DOTD) Alia's total consideration could reach US$60m depending on performance, with earn-out payment dates of 31 May 2027 and 2028 based on monthly Recurring Revenue multiplied by twelve. Alia's ARR rose from £6.9m at Acquisition to £10.0m by 30 June.

For Social Snowball, the group booked a £5.2m gain after revising expected contingent payments towards the lower to middle part of a range capped at US$15.0m. A first-year deferred payment of US$0.7m was made in early FY27. The board expects cash balances to rebuild as these commitments reduce.

What consensus expects for FY27

The statement cites consensus for the year to June 2027 of £104.7m revenue, £32.8m adjusted EBITDA and £22.3m adjusted profit before tax. By our calculation, that implies roughly 15% revenue growth and 12% EBITDA growth on FY26. The board says trading in the first four months was in line with its expectations, which assume growth accelerates as the year progresses, and it is confident of delivering consensus.

Supporting points include forward contracted ARR of £85.4m, up 18% (8% organic), gross retention in the core platform of 85%, and cross-selling of Alia to existing customers from September 2026. Agents in Dotdigital, in preview with around 250 customers, is expected to reach general availability at the start of November 2026.

Risks and limitations

Organic revenue was flat, reflecting the planned exit from a low-margin messaging contract and weaker one-off project revenue, and management describes market conditions as mixed, with longer buying decisions. The FY27 consensus relies on growth accelerating later in the year, so first-half progress will matter. Earn-outs linked to Alia's success would absorb cash that might otherwise fund dividends or buybacks, and the size of those payments remains uncertain.

The board has proposed a final dividend of 1.33p per share (FY25: 1.21p), subject to Shareholder approval; payment dates were not located in the sections reviewed.

Next steps

Management is hosting a virtual investor presentation via Investor Meet Company on Thursday 5 November 2026 at 11:00 GMT, and says the FY26 Annual Report will be published on its website. The next formal checkpoints are the AGM, at which the final dividend will be put to shareholders, and interim results covering the six months to 31 December 2026.