By Adam Whittaker

Eagle Eye Solutions said that Neptune Retail Solutions will terminate an up to $13.5 million a year contract, a loss which it expects to have a material impact on its fiscal 2026 performance.

The software and AI technology company said Monday that the contract delivers annual revenue between 9 million and 10 million pounds ($12.1 million and $13.5 million), and will end Aug. 2.

The London-listed company said the contract delivers high margins and that a cost-savings program is underway to mitigate the financial loss.

Eagle Eye said the terminated contract won't affect its performance for the fiscal year ending June 30. The board continues to expect its performance to be in line with market expectations of revenue around 47.7 million pounds and an adjusted earnings before interest, depreciation and amortization margin of 23.8%.

However, while the impact on its fiscal 2026 performance will be material, the board continues to expect a double digit adjusted Ebitda margin, it said.

For fiscal 2027, it expects a return to double digit revenue growth and a 20% adjusted Ebitda margin, it added.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

June 02, 2025 02:43 ET (06:43 GMT)

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