Black Pearl Group Limited Analysis

Overview

Blackpearl Group is a technology company that builds, acquires, and markets data-driven cloud services, consisting of a suite of productivity and demand generation applications for small and medium-sized businesses (SMB).

Blackpearl Group’s proprietary private platform, the Pearl Engine, is the cornerstone of organic growth for both built and acquired technologies. Through leveraging elements or entire components from the Pearl Engine, companies within the Group can access new markets, increase their value proposition, and improve their cost-to-revenue ratio faster and at near zero marginal cost.

Blackpearl Group's first applications focus on the number one business tool in the world today, email. Transforming it from a transactional tool into a demand-generation tool to help SMBs grow their revenue and build stronger relationships with their customers.

Founded in 2012, Blackpearl Group is driven from Wellington, New Zealand, and Phoenix, Arizona.

Performance

The following information was extracted from Blackpearl Group's fullyear results, released 28 May 2026

The Group delivered another record result, with Annual Recurring Revenue (ARR) growing 114%

year-on-year to $26.8 million, supported by the rapid scaling of Data-as-a-Service (DaaS) at 0%

churn and a strong post-acquisition trajectory from B2B Rocket.

With the growth case proven, the Group enters FY27 pursuing ARR growth and cash conversion as

equal priorities.

FY26 Highlights

• Record $26.8m ARR, up 114% from $12.5m at 31 March 2025

• Pearl Engine benchmark: 25× more A-grade commercial records per dollar than leading generalist AI models; 87.3% output quality versus ~70%; 5× lower cost per quality record*

• $13.7m subscription revenue, up 77% from $7.7m in FY25

• 69% gross profit margin (FY25: 67.8%); fixed-cost data supply now fully in place

• 3.5 months CAC payback, 33% improvement YoY; within Bessemer best-in-class range of 0–6 months

• $346,000 ARR per employee, up 41% from $245,000 at Q4 FY25

• Revenue churn: DaaS at 0% for the full year; SaaS at 4.9% (FY25: 5.3%)

• B2B Rocket fully integrated into the Pearl Engine ecosystem; $1.8m of annualised cost synergies now identified for FY27

• EBITDAF loss of $15.7m

• $10.2m of one-off non-recurring costs – B2B Rocket acquisition, ASX listing, offer costs

• $9.6m cash at 31 March 2026; BNZ NZ$5m facility refinanced to March 2028; ASX dual-listing completed November 2025

Financial commentary

Blackpearl delivered strong revenue performance in HY26, with ARR rising 87% year-on-year to $19.5m (annualised) and subscription revenue increasing 59% to $5.2m (six months) as customers progressed through onboarding and billing cycles. The expected lag between ARR and subscription revenue remains, particularly in Data-as-a-Service (DaaS) contracts where revenue ramps up over the first 3-6 months and is recognised over longer terms. Early contribution from B2B Rocket (adding 40 days of subscription revenue), further supported ARR growth and will contribute further to H2 revenue. As new ventures scale and platform efficiencies compound, ARR and subscription revenue are expected to align more closely over time.

Gross margin decreased during the half to 67%, reflecting the shift to a fixed-fee data supply model. While the new model increased temporary upfront costs, the structure is already delivering scale benefits, contributing to a 10% margin improvement from Q4 FY25. Operating expenses increased as planned due to one-off ASX listing, capital raise and acquisition costs, continued Pearl Engine development, and the launch of Bebop. These investments are foundational to the Blackpearl’s long-term scale, and operating leverage is expected to strengthen as ARR continues to grow.

The balance sheet was strengthened through a successful private placement raising $11.8m to support product expansion, growth hiring, and platform development. Net free cash outflows of $7.1m (excluding the B2B Rocket acquisition) reflect planned investment to scale the business. With increased balance sheet resilience, a broader investor base, and disciplined cash management, Blackpearl is well positioned to continue its growth trajectory.