Celebrus Technologies (LSE:CLBS) saw its shares drop more than 10% on 9 April 2026 after a trading update for the year ended 31 March 2026 showed Revenue sharply lower and the Business slipping to an adjusted loss. The company said the outcome matched market expectations on revenue but flagged lost and delayed deals.

What the company does

Celebrus supplies software that captures and organises customer behaviour data across websites, apps and other channels, helping large organisations, particularly banks and other financial services groups, build a unified view of their customers. Its model combines recurring licence and subscription income with services. LSE:CLBS reports in US dollars and is led by chief executive Bill Bruno.

Latest developments

According to the 9 April update, revenue for the 2026 financial year was about 23.3 million dollars, against 38.7 million a year earlier. The company attributed the fall to changes in contractual arrangements from April 2025, including revised cost of sales definitions, new revenue segmentation and straight-line recognition of licence revenue, rather than weaker underlying activity. Adjusted pre-tax result was a loss of about 0.2 million dollars, compared with a profit of 8.7 million dollars, slightly ahead of consensus thanks to second-half cost control.

Two banking clients reduced their footprint after divestitures, cutting software fees, and new business fell short of expectations as several fourth-quarter deals were lost or delayed. Shares were down 10.47% at 84.61 pence at 15:17 BST on the day. Management said it had adjusted the business based on lessons from the year, including changes to its go-to-market approach and further Investment in customer success, and pointed to a solid pipeline and more new leads at the start of the new financial year.

Financial picture

Software revenue was 20.0 million dollars, down from 30.3 million, with the Celebrus (LSE:CLBS) Software element contributing 9.4 million, down from 13.3 million. Annual Recurring Revenue rose 10.3% to 15.0 million dollars from 13.6 million, and net revenue retention was 97.6%. The Balance Sheet stayed solid, with cash of 32 million dollars, up from 31.5 million, and no debt.

Sector and index context

Enterprise software groups serving banks face long sales cycles and concentration among a limited number of large customers, which can make revenue lumpy. Celebrus (LSE:CLBS) is one of the smaller technology names on the FTSE AIM All Share Index, and the market reaction to its update illustrates how quickly sentiment can turn when new business slips, even when the numbers are broadly as forecast.

Key risks

Customer concentration is the most visible risk, as divestitures at two banks directly reduced fees. Revenue recognition changes complicate year-on-year comparisons and could continue to obscure underlying trends. Delays in closing deals, competition from larger customer data platforms and the need to invest in sales and customer success while returning to profit are further considerations. Net revenue retention below 100% indicates that existing customers are, on balance, spending slightly less, even though recurring revenue grew overall.

What to watch next

Investors will look for evidence that the revised sales approach is generating new contract wins, for growth in annual recurring revenue beyond the 15.0 million dollars reported, and for the half-year trading position. Management's comments on pipeline conversion, any further customer departures and the use of the 32 million dollar cash pile, including potential acquisitions or returns to shareholders, will also be closely examined.