Tern posts bigger loss despite portfolio progress

(Sharecast News) - Tern reported a wider annual loss on Tuesday as the AIM-listed technology investor marked down the value of its portfolio despite continued progress across its key holdings.

The AIM-traded company, which focuses on Internet of Things, cybersecurity and artificial intelligence businesses, posted a total comprehensive loss of £5.1m for the year ended 31 December 2025, compared with a loss of £3.8m a year earlier.

Net asset value fell 36% to £6.9m, while portfolio value declined 32% to £7.3m after Tern recognised a £4.1m fair value reduction across its investments.

Cash balances dropped to £49,385 from £382,213, although administration costs were reduced by 15.7% to £1.0m.

Interim chair Jane McCracken said the group had remained focused on converting portfolio value into shareholder returns despite a difficult venture capital environment.

She said Tern had adopted a more detailed valuation methodology that better reflected the value attributable to its specific holdings, taking into account factors such as dilution, share class rights and bridge financing.

"The board remains confident that the portfolio continues to hold significant long-term value," she said.

Among its largest investments, Device Authority was valued at £3.9m, down from £4.3m, while Fundamental XR fell to £1.6m from £3.6m and Talking Medicines declined to £1.7m from £2.1m.

Tern said all three businesses continued to make commercial progress, with Device Authority expanding its software-as-a-service offering, Fundamental XR developing its AI-enabled medical training platform and Talking Medicines gaining traction in AI-driven healthcare analytics.

The company said it remained focused on supporting portfolio companies towards future liquidity events and balancing reinvestment with shareholder returns following any material exits.

At 0934 BST, shares in Tern were down 5.68% at 1.04p.

Reporting by Josh White for Sharecast.com.

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