This month we analyse the quality of company-defined profits in the UK software subsector. Company-defined profits are inconsistent across companies and flatter profits. Companies usually focus on Adjusted EBITDA, which we calculate is almost double statutory operating profit, on average. To provide a pro forma operating profit definition that better represents the ongoing profits of software firms that are available to capital providers, we believe amortisation of software development costs, sh ....
04 Nov 2025
UK smallcap technology - Quality of earnings in the software subsector - November 2025
Alfa Financial Software Holdings Plc (ALFA:LON), 214 | Insig AI PLC (INSG:LON), 18.8 | NCC Group plc (NCC:LON), 139 | Corero Network Security plc (CNS:LON), 10.2 | Microlise Group plc (SAAS:LON), 96.0 | Quartix Technologies PLC (QTX:LON), 298 | Big Technologies PLC (BIG:LON), 76.6 | Northcoders Group PLC (CODE:LON), 32.0 | SysGroup plc (SYS:LON), 16.0 | Team Internet Group plc (TIG:LON), 49.1 | LBG Media Plc (LBG:LON), 78.4 | Silver Bullet Data Services Group plc (SBDS:LON), 23.5 | Frontier Developments Plc (FDEV:LON), 460 | Everplay Group Plc (EVPL:LON), 314 | Devolver Digital, Inc. (DEVO:LON), 23.5 | Winking Studios Limited (WKS:LON), 13.0 | tinyBuild Inc. (TBLD:LON), 7.0 | Solid State plc (SOLI:LON), 172 | CyanConnode Holdings plc (CYAN:LON), 6.8
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UK smallcap technology - Quality of earnings in the software subsector - November 2025
Alfa Financial Software Holdings Plc (ALFA:LON), 214 | Insig AI PLC (INSG:LON), 18.8 | NCC Group plc (NCC:LON), 139 | Corero Network Security plc (CNS:LON), 10.2 | Microlise Group plc (SAAS:LON), 96.0 | Quartix Technologies PLC (QTX:LON), 298 | Big Technologies PLC (BIG:LON), 76.6 | Northcoders Group PLC (CODE:LON), 32.0 | SysGroup plc (SYS:LON), 16.0 | Team Internet Group plc (TIG:LON), 49.1 | LBG Media Plc (LBG:LON), 78.4 | Silver Bullet Data Services Group plc (SBDS:LON), 23.5 | Frontier Developments Plc (FDEV:LON), 460 | Everplay Group Plc (EVPL:LON), 314 | Devolver Digital, Inc. (DEVO:LON), 23.5 | Winking Studios Limited (WKS:LON), 13.0 | tinyBuild Inc. (TBLD:LON), 7.0 | Solid State plc (SOLI:LON), 172 | CyanConnode Holdings plc (CYAN:LON), 6.8
- Published:
04 Nov 2025 -
Author:
Bob Liao, CFA -
Pages:
9 -
This month we analyse the quality of company-defined profits in the UK software subsector. Company-defined profits are inconsistent across companies and flatter profits. Companies usually focus on Adjusted EBITDA, which we calculate is almost double statutory operating profit, on average. To provide a pro forma operating profit definition that better represents the ongoing profits of software firms that are available to capital providers, we believe amortisation of software development costs, sh ....