Nuix Ltd (ASX:NXL) (Q1 2026) Earnings Call Highlights: Strong Revenue Growth and Strategic …

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Mon, February 23, 2026 at 2:01 PM GMT+9 4 min read

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**ACV Growth:** 8.4% increase to $234.4 million.

**Revenue:** Increased by 15.2% to $121.2 million.

**Adjusted Management EBITDA:** Rose by 42.6% to $19.1 million, with margin expanding from 12.7% to 15.8%.

**Net Cash Position:** $57.8 million, up 88.4% from the previous year.

**Net Dollar Retention:** 101%, down from 109.6% in the prior corresponding period.

**Customer Churn:** Improved to 5.9%, down from 7.1% at FY25.

**Free Cash Flow:** $20.4 million, compared to negative $7.4 million in 1H25.

**R&D Spend:** $28.8 million, representing 24% of revenue.

**Statutory EBITDA:** $26.5 million.

**Regional Performance:** EMEA ACV up 18.8%, North America ACV up 10.8%, Asia Pacific ACV declined by 8.6%.

Warning! GuruFocus has detected 2 Warning Signs with MAYNF.

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Release Date: February 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Nuix Ltd (ASX:NXL) reported an 8.4% growth in Annual Contract Value (ACV) to $234.4 million.

Revenue increased by 15.2% to $121.2 million, demonstrating strong financial performance.

Adjusted management EBITDA rose by 42.6% to $19.1 million, indicating significant operating leverage.

The company achieved a material lift in cash generation, ending with a net cash position of $57.8 million.

Nuix Ltd launched a comprehensive neo migration program to transition customers to a modern platform, driving ACV growth.

Negative Points

Net Dollar Retention (NDR) decreased to 101% from 109.6% in the prior corresponding period, indicating challenges in retaining existing customer revenue.

Component ACV declined by $18.3 million due to downsell in the component customer base and migration to newer solutions.

There was a loss of a significant client to a competitor, impacting the NDR negatively.

Asia Pacific ACV declined by 8.6%, partly due to the loss of a large legal sector client.

The company faces challenges in systematically migrating its customer base to the new platform, which is critical given the weaker NDR outcome.

Q & A Highlights

Q: Can you highlight any parts of the product roadmap that are particularly important for driving business growth in the medium term? A: John Ruthven, Interim CEO: The BYO AI models are expected to drive strong growth. We are also preparing for the launch of our NEOSAS platform. The upcoming release of the neo platform, version 2.2.1, will continue to drive market momentum.

Q: What maturity is required in the sales and marketing teams to generate more productivity? A: John Ruthven, Interim CEO: Investment has been focused on sales enablement and embedding our ideal client profile. Our new CEO will focus on driving account-based marketing and field programs to enhance lead generation and top-of-funnel activity.

Story continues  

Q: Can you provide more details on the net dollar retention (NDR) of 101% and the downsell in large contracts? A: Peter McClelland, CFO: NDR is not in our target range, but new business growth is strong. The downsell was due to normal client project cycles ending, some clients opting for direct deals, and a competitive loss in the legal sector.

Q: Why are Nuix Neo and Nuix Neo Discover presented separately, and will this continue? A: John Ruthven, Interim CEO: The separation provides transparency on the mix and makeup of our offerings. We plan to continue this reporting approach for the foreseeable future.

Q: Are there any changes planned for the sales channel mix, particularly between direct sales and distribution? A: John Ruthven, Interim CEO: There are no planned changes to the mix. We will continue with a blended go-to-market model, leveraging both direct sales and channel partners.

Q: How is the Ideal Client Profile (ICP) definition changing the target customers Nuix is pursuing? A: John Ruthven, Interim CEO: The focus is on refining our go-to-market strategy to target large-scale, highly regulated industries, such as government agencies and large corporates, where our value proposition is strongest.

Q: What new features are included in NO 2.1 compared to 2.0? A: John Ruthven, Interim CEO: The update includes semantic search, UI enhancements, and local deployment capabilities to accelerate time to value in customer environments.

Q: Should we expect a higher proportion of multi-year deals in the future? A: John Ruthven, Interim CEO: While we don’t anticipate a dramatic increase, our target market of large enterprises and government agencies tends to prefer longer-term deals, which we accommodate based on their commercial requirements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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