Facephi has lowered its 2026 revenue forecast to €32.5 million from €46.2 million, saying more customers are signing consumption-based software-as-a-service contracts that spread revenue over time instead of multi-year prepaid deals. The new figure is below the €36.0 million the Spanish identity verification company reported for 2025.
The company also cut its forecast for normalized EBITDA to €7.4 million from €11.0 million and now expects free cash flow of €0.9 million, down from €4.3 million. It projects net financial debt of €4.1 million at year-end, compared with a previous estimate of €2.8 million. Facephi’s board approved the updated projections on Oct. 30, when the company published its first-half accounts.
In its filing to the BME Growth market, Facephi said the revised revenue estimate reflects a lower expected contribution from multi-year prepurchase contracts than in previous years. Those agreements remain part of its business and last about two and a half years on average, but current terms spread contract amounts more gradually, reducing the share counted in 2026. The company said the update does not change its “Sustainable Growth and Cash Flow Generation” strategic plan.
First-half revenue fell to €11.6 million from €12.6 million a year earlier, while total contract value rose 16.4 percent and annual recurring revenue increased 6.3 percent. Facephi reported half-year EBITDA of negative €1.2 million and a net loss of €6.1 million, including a €1.2 million impairment charge on trade receivables.
CEO Javier Mira said the platform-based SaaS model now accounts for more than 90 percent of the business. Cloud revenue made up 91 percent of first-half sales, up from 86 percent in 2025. Latin America generated 97.1 percent of first-half revenue, and banking customers 87.6 percent.
Over the 12 months to the end of June, revenue rose 17.3 percent to €34.9 million and free cash flow reached €1.1 million, which Facephi said was the first positive 12-month figure in its 14-year history. Cash fell to €0.7 million at the end of June from €2.2 million at the end of 2025, and the company’s syndicated loan matures in December.
Facephi also completed a first €2.0 million issue of commercial paper under its 2026 program on Spain’s MARF fixed-income market, at rates between 7.25 and 7.90 percent. For 2027, management is targeting a return to double-digit growth driven by behavioral biometrics, the EMEA region and partnerships, supported by the Facephi Intelligence Platform it introduced in October.
Sources: BME Growth, Idéal Investisseur
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By the ID Tech Editorial Team
