- TCV increased 16% and ARR grew 6% versus H1 2025.
- Positive FCF of €1.1 million generated during the twelve months ended June
2026, a first in the Company’s history. - Revenues for H1 26 declined 8.2%; while on an LTM basis grew by 17.3%.
- Facephi updates its 2026 outlook, now expecting revenue of €32.5M, 9.7%
lower than in 2025, and positive FCF of €0.9 million, compared with negative
FCF of €2.4M in 2025
Facephi (BME Growth: FACE; Euronext Growth Paris: ALPHI), a global leader in digital identity verification and fraud prevention, today released its financial results for the first half of 2026, and updated its financial guidance for fullyear 2026.
Javier Mira, CEO of Facephi, commented: “H1 2026 has been a period of continued transformation for Facephi, in an industry that is evolving at an unprecedented pace”.
As a result, Facephi has accelerated the evolution of its business model towards a comprehensive platform-based SaaS model, which now accounts for over 90% of our business. This evolution is also reflected in our revenue model, as our contracting mix is increasingly shifting from multi-year prepaid agreements towards post-consumption arrangements, consistent with a SaaS model.
Current contract terms provide for a more gradual allocation of contractual amounts over the life of the agreements, rather than the upfront recognition associated with certain multi-year prepaid contracts. This results in a lower contribution to revenue recognised upfront and, consequently, to our expected revenue for 2026. Under this model, revenue and ARR should become increasingly aligned over time. ARR reflects the
annualised value of our contracts, irrespective of their timing of revenue recognition.
This effect is already reflected in our H1 2026 figures: revenue declined by 8% compared with H1 2025, while Total Contract Value (TCV) and Annual Recurring Revenue (ARR) increased by 16% and 6%, respectively, further strengthening the quality and visibility of our revenues.
Most importantly, Facephi generated positive Free Cash Flow (FCF) of €1.1M during the twelve months ended June 2026, a significant milestone in the Company’s financial evolution. This figure reflects actual cash generation without adjustments for foreign exchange effects, reinforcing the sustainability of the progress achieved in profitability and financial discipline.
In parallel, we continued to strengthen our balance sheet, reducing financial liabilities from €7.2 million at year-end 2025 to €6.6 million by June 2026, a 8.3% reduction.
The continued growth of TCV and ARR, together with sustainable FCF generation and a stronger balance sheet, provides an increasingly solid foundation for the future development of our business.
For 2026, we now expect revenue to be 9.7% lower than in 2025, an EBITDA margin of 22.8% compared with 28.9% in 2025, and positive FCF of €0.9M, compared with negative FCF of €2.4M in 2025.
Beyond our financial performance, we are taking an important step forward with the launch of Facephi Intelligence Platform. The digital identity and fraud prevention industry is changing rapidly, driven by increasingly sophisticated fraud, the acceleration of AI and growing demand from organisations for integrated, scalable solutions. Facephi Intelligence Platform is our response to this evolution and represents the next stage in Facephi’s transformation, bringing our capabilities together within a unified platform designed to address our
customers’ identity challenges throughout the user lifecycle.
We see this transformation of the industry as a significant opportunity. Facephi Intelligence Platform strengthens our value proposition and positions Facephi to address our customers’ evolving needs
in a more comprehensive, integrated and secure way.
Our updated 2026 revenue outlook reflects the ongoing transition towards a SaaS-based model rather than a change in our expectations for the underlying performance of the business. In this context, we believe that revenue and ARR, considered together, provide a more comprehensive view of our business performance. Our strategic direction remains unchanged. We remain focused on sustainable growth, profitability and
cash generation, while continuing to strengthen our capabilities and maintain our leadership in digital identity and fraud prevention.
As we approach the end of 2026, we do so with greater revenue visibility, positive free cash flow and a stronger strategic proposition through FIP. Together, these elements provide a solid foundation for building a more scalable, profitable and sustainable Facephi