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 half year results, released 21 November 2025

Blackpearl has executed strongly across all priorities set for FY26: accelerating Annual Recurring Revenue (ARR), advancing the Blackpearl Engine, launching a new AI product and acquiring a highly synergistic venture. These achievements demonstrate the power of Blackpearl’s platform driven model, which consistently converts valuable proprietary data into measurable commercial outcomes.

Highlights

• $19.5m Annual Recurring Revenue, +87% YoY

• $5.2m Subscription Revenue, +59% YoY

• 67% gross margin, 5.8 PPT decline YoY, 10% increase from Q4 FY25

• 4.6% Revenue Churn, 0.6 PPT increase YoY

• 4.6 Month CAC Payback Period increased due to launch of wholesale and acquisition of B2B rocket

• New wholesale (DaaS) offering launched, unlocking a scalable route to monetise the Blackpearl Engine

• Pearl Diver, Bebop, B2B Rocket and DaaS now operating as four parallel engines for scale

• New wholesale (DaaS) offering launched, unlocking a scalable route to monetise the Blackpearl Engine

• Acquired B2B Rocket, a high growth US-based AI sales tool

• 21bn signals processed daily - reinforcing Blackpearl Engine’s data advantage and platform leverage

• Capital raise to fuel product expansion, venture scale, and Blackpearl Engine investment

• Admission to the Australian Securities Exchange (ASX) as a Foreign Exempt Issuer expected to occur today, broadening institutional access and strengthening market visibility.

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.