Narf shares climb on interim pretax loss shrink and revenue rise

Mon, 17th Nov 2025 14:23

(Alliance News) - NARF Industries PLC on Monday reported a narrowed pretax loss and higher revenue in its half-year results, as the company said it expected to see contract wins from its artificial intelligence tool next year.

Shares in Narf climbed 11% to 0.42 pence on Monday afternoon in London.

The London-based cybersecurity provider said pretax loss for the six months ended September 30 more than halved to USD555,145 from USD1.9 million a year ago, driven by an increase in revenue.

Revenue rose 74% to USD2.1 million from USD1.2 million a year ago fuelled by the Government Research and Development segment. Narf noted that this segment won larger contract awards, including the Defense Advanced Research Projects Agency's INGOTS programme

Lower depreciation and amortisation costs and decreased direct salaries also helped bolster the bottom line.

Zero revenue, compared to USD50,000 a year ago, was reported for the Government Systems and Services segment. This resulted from the company's decision to focus on "building a product team to bring Ranger.ai to market".

The company said there was "no material impact" from the US government shutdown.

Looking ahead, Narf said it anticipates initial contract awards for Ranger.ai in the first quarter of 2026, with "meaningful revenue contributions" beginning in financial 2027.

"The company's GR&D strategy now targets research opportunities that provide a more direct and accelerated transition to government SaaS systems, leveraging agentic AI technology as a core capability. Building on our reputation for bringing a mission-focused approach to research and expanding our AI expertise, the company is increasingly well positioned for larger, higher-value work in this market segment," the company said.

The Chief Executive's loan facility has been extended to July 2026.

Executive Chair John Herring said: "The first half of the year saw solid operational progress and continued execution of Narf's strategy to advance its government-funded research segment (GR&D) business and transition promising capabilities into scalable, enterprise-ready cybersecurity products."

By Roya Shahidi, Alliance News reporter

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