(Sharecast News) - Dianomi reported broadly resilient full-year revenue on Friday, despite a cautious advertising market, as improved gross margins and second-half momentum helped the digital advertising group return to growth and profitability in the latter part of 2025.
The AIM-traded company, which provides digital advertising services to premium clients in the business, finance and lifestyle sectors, said revenue for the year ended 31 December slipped 2.1% to £27.4m from £28.0m.
At constant currency, revenue would have been £28.1m, with the difference reflecting the strengthening of sterling against the dollar during the year.
Gross profit rose to £7.4m from £7.3m, while gross margin improved to 27.1% from 26.1%, reflecting operational optimisation.
Dianomi reported an adjusted EBITDA loss of £0.3m, unchanged from the prior year, after continued investment in sales, product development and artificial intelligence capabilities.
The company swung to a pre-tax loss of £0.8m from a £0.3m profit in 2024, while the loss after tax was £1.1m, compared with a £0.4m profit a year earlier.
Adjusted losses per share widened to 2.99p from 1.06p, while statutory losses per share was 3.70p, compared with earnings of 1.40p in 2024.
Dianomi said it maintained a strong balance sheet, with no borrowings and cash of £5.8m at year-end, down from £8.8m a year earlier.
The reduction reflected cash used in operations, payments to publishers in respect of prior-year balances and foreign exchange losses on its largely dollar-denominated cash position.
Operationally, the company said average revenue per click rose 7.4% to 58p, supported by advertiser demand for premium, brand-safe inventory.
Programmatic revenue increased to £1.7m from £1.6m, while publisher churn remained low at 2.9% on a revenue basis.
Dianomi said it continued to expand relationships with premium global publishers including CNN and Associated Press, both during the year and after the period ended.
It also attracted new advertisers including Dropbox, Pictet Asset Management and KeyBank, while continuing to develop Dianomi Insights, its proprietary media analytics platform, and Dianomi Audiences, its audience targeting solution.
The company said traffic across parts of the digital publishing market remained under pressure, with impressions on its platform falling 14.1% to 39.1bn and average monthly unique devices down 13.5% to 424m, despite the number of publishers remaining stable at 341.
It said the decline reflected lower readership levels at certain non-subscription publishers as audiences increasingly consumed content through AI-generated summaries and zero-click search results.
Post year-end, Dianomi announced a partnership with AI media infrastructure company Dappier to launch an AI-powered financial answers engine for publishers, aimed at helping them retain audiences and create new monetisation opportunities from AI-driven financial content.
Chief executive officer Rupert Hodson said Dianomi had delivered a resilient performance in 2025, with trading strengthening through the year.
"During the year we continued to invest in our platform, commercial capabilities and product offering, while also expanding relationships with leading global publishers including CNN and Associated Press," he said.
"Our recently announced partnership with Dappier demonstrates how we are evolving our AI capabilities to create new monetisation opportunities for publishers and advertisers."
Hodson said the group entered 2026 with improved momentum and remained well positioned to capitalise on opportunities across premium digital publishing and AI-driven advertising.
At 1317 BST, shares in Dianomi were up 15.79% at 22p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate
Market News

* S&P 500 set for longest weekly winning streak since December 2023


* Defence stocks rise on Russia-Ukraine tensions, Romania reports drone attack


* Inflation data mixed in major euro zone economies