Nuix Faces Retention Challenges Despite Record Nuix Neo Growth and Cash Boost

Strong Growth Driven by Nuix Neo Platform

Nuix Limited’s 1H26 results reveal a company gaining momentum in its transformation journey, with Annualised Contract Value (ACV) climbing 8.4% to $234.4 million. The standout performer was Nuix Neo, the company’s modern investigative analytics platform, which saw its ACV surge by 148% to $46.8 million, now representing a fifth of total ACV. This rapid growth underscores Nuix’s successful pivot towards next-generation software solutions that leverage AI and large-scale data processing.

Revenue growth of 15.2% to $121.2 million was underpinned by multi-year deal renewals and accelerated new customer acquisition, particularly through Nuix Neo sales. The company’s ability to convert contract value into revenue at an increasing rate highlights the effectiveness of its sales transformation initiatives.

Profitability and Cash Flow Improvements Signal Operating Leverage

Nuix reported a 42.6% jump in Adjusted Management EBITDA to $19.1 million, with margins expanding to 15.8%. This substantial improvement reflects operating leverage as revenue growth outpaces cost increases. Statutory EBITDA rose even more sharply by 72.7% to $26.5 million, aided by lower legal costs compared to the prior period.

Cash generation also improved markedly, with underlying cash flow reaching $28.4 million, up more than fourfold from 1H25. The company closed the half with $57.8 million in cash, bolstering its financial flexibility. Nuix continues to fund its research and development spend, which remains robust at nearly a quarter of revenue, from this positive cash flow.

Strategic Initiatives and AI Integration

Central to Nuix’s growth strategy is the Nuix Neo Migration Program, launched to systematically transition customers from legacy solutions to the AI-enhanced Nuix Neo platform. This migration is expected to unlock new revenue streams and improve customer retention, addressing the company’s slightly softened Net Dollar Retention metric, which fell to 101.0% from 109.6% in the prior corresponding period.

Nuix’s AI strategy is distinctive in its flexibility, adopting a “Bring Your Own AI” framework that allows customers to integrate preferred AI models while maintaining forensic-grade governance and compliance. This approach positions Nuix well amid the evolving AI landscape, combining enterprise-scale data processing with advanced AI reasoning capabilities.

Acquisition and Regional Performance

In December 2025, Nuix announced the pending acquisition of Linkurious, a partner specialising in graph visualisation technology, which will enhance Nuix Neo’s investigative capabilities. The transaction awaits regulatory approval in France, a factor to watch in the coming months.

Regionally, EMEA led growth with an 18.8% increase in ACV, driven by government sector demand and strong Nuix Neo sales. North America also showed solid gains, while Asia Pacific experienced a decline due to client migration and fewer new customers.

Outlook and Next Steps

Nuix reaffirmed its full-year ACV guidance of $240 million to $260 million, with expectations for ACV growth weighted towards the second half. The company remains focused on accelerating Nuix Neo adoption, driving revenue growth ahead of costs, and maintaining positive cash flow. With a strengthened balance sheet and clear strategic direction, Nuix appears well-positioned to capitalise on the expanding demand for AI-powered investigative analytics.