Tribal has announced another very pleasing update, as FY25 results are slightly better, meaning EBITDA is +3% ahead of recently upgraded forecasts. Meanwhile, year-end net cash of £11.4m is materially better than expected and points to £16.7m FCF (up from £6.1m in FY24). ARR also performed well, as growth accelerated from +5% to +14% ccy (to £65.0m) driven by robust demand for SITS and strong ‘HEFS’ uptake, which importantly provides long-term spend commitments and drives broader product adoption - benefitting customer retention and lifetime value in the process. We also note HEFS provides a cloud migration pathway and hence improves the prospect of driving Cloud revenue, which remains a material opportunity. As a result, Tribal commences FY26 with strong revenue visibility and good growth prospects - providing us the confidence to nudge up FY26 forecasts (EBITDA and EPS +6% and +9% resp.) furthermore, we upgrade our target price to 87p 18x FY26 P/E. We view today’s news as further validation of TRB’s progress and evolution, as the company is demonstrating its ability to drive attractive risk-adjusted returns, while also increase shareholder distributions.