Nuix (ASX: NXL) reported strong 1H26 results with ACV up 8.4% to A$234.4m, driven by a 148% surge in Nuix Neo ACV and reaffirming its FY26 guidance.
Nuix Neo ACV now represents 20% of total ACV.
Revenue grew 15.2% to A$121.2m, supported by a higher mix of multi-year deals.
Adjusted Management EBITDA increased 42.6% to A$19.1m, with margins expanding to 15.8%.
Net cash stood at A$57.8m, with free cash flow conversion at 149%.
Linkurious Acquisition Bolsters Platform
Nuix signed an agreement to acquire graph intelligence leader Linkurious for up to €20 million EV.
The acquisition, expected to close in Q1 2026, includes €12.5 million upfront cash, €2.5 million in Nuix shares, and a €5 million contingent earnout over 24 months.
Funding is secured through an upsized A$50m debt facility, with A$20m earmarked for the acquisition. This facility matures on 6 February 2029.
Linkurious had approximately €7m ACV (around A$12m) as of June 2025 and delivered positive EBITDA and operating cash flow in 2024.
Neo Migration and AI Strategy
The Nuix Neo Migration Program has been launched to transition customers to the Neo platform, aiming for a 6-12 month payback.
Nuix Neo processing is 4-5x faster, with 90% of projects production-ready within 24 hours.
Future roadmap for H2 FY26 includes SaaS/cloud deployment, knowledge graph enhancements, and BYO AI models, semantic search, and an AI data curator.
Typical Neo migration lifts existing customer ACV by 30-50%, while new Neo deals are 2-3x larger than non-Neo new sales.
Outlook and Financial Position
FY26 ACV guidance is maintained at A$240-260m (excluding Linkurious), with the second half expected to be stronger due to typical seasonal patterns.
The company maintains a going-concern assessment despite ongoing regulatory matters.
Amended debt facilities extend the revolver to A$30m and add an A$20m term loan, with maturity extended to 6 February 2029.
Risks and Execution
Regional performance showed strength in North America and EMEA, but APAC remains a headwind.
Integration and regulatory approval risks for the Linkurious acquisition are present, with not all French approvals received yet.
Ongoing litigation and regulatory actions introduce uncertainty and could affect outcomes and timing.
A Net Dollar Retention of 101% and churn of 5.9% indicates some churn and downsell risk.
Nuix's Strategic Pivot
Nuix's first-half results demonstrate strong momentum driven by Nuix Neo adoption and improved operational efficiency, as evidenced by increased ACV and profitability.
The strategic acquisition of Linkurious, alongside the launch of the Neo migration program and AI roadmap, positions the company for future growth.
Execution and regulatory hurdles remain key areas to monitor.
