essensys PLC (ESYS) AI Stock Analysis

• Market Cap: £9.40M
• Dividend Yield: N/A
• Average Volume (3M): 38.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -5.21%
• EPS Growth: 76.14%
• Country: UK
• Employees: 116
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 64,795,990
• 10 Day Avg. Volume: 33,226
• 30 Day Avg. Volume: 38,946
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: 14.50p ▲(0.00% Upside)

The score is held back primarily by ongoing losses and weakening recent revenue, despite improved 2025 cash generation and a relatively low-leverage balance sheet. Technical signals are also strongly bearish (below major moving averages, negative MACD, very low RSI), and valuation support is limited due to negative earnings and no dividend yield.

Positive Factors

Recurring subscription and managed services model

A subscription and managed-network revenue model creates predictable, recurring cash flows and high customer switching costs for multi-site operators. Over 2-6 months this supports revenue resilience and upsell potential as operators expand sites or add modules, aiding long-term revenue stability.

Low financial leverage

A low debt burden reduces default risk and preserves strategic flexibility to invest in product development or customer acquisition. This conservative capital structure gives the company time to execute a turnaround without heavy interest obligations or near-term refinancing pressure.

Operating and free cash flow turned positive in 2025

Restored operating and free cash flow indicates improving cash generation and operational discipline, enabling internal funding of growth or working capital. While prior volatility exists, sustained positive cash flow materially improves runway and reduces dependence on external financing.

Negative Factors

Persistent net losses and negative operating profit

Ongoing losses and negative operating margins signal the company has not yet achieved unit economics necessary for durable profitability. Over months this threatens equity dilution, constrains reinvestment capacity, and requires sustained margin improvements to reach self-funded growth.

Material recent revenue decline

A multi-year revenue downtrend and sharp recent declines undermine the platform's ability to scale and generate consistent subscription expansion. Structural customer churn or weak new sales would limit long-term margin recovery and make achieving sustainable growth more challenging.

Eroding equity base and negative returns on equity

A shrinking equity base from cumulative losses indicates value dilution and reduces shock absorption for future losses. Negative ROE reflects poor capital efficiency, making future capital raises more dilutive and raising the bar for management to restore investor capital over the medium term.

essensys PLC Business Overview & Revenue Model

Company Description

essensys plc provides software-as-a-service platforms and on-demand cloud services to the workspace industry in the United Kingdom and the United States of America. The company's products include Connect, a software platform for multi-site operators that provide, manage, and monitor mission-critical infrastructure services in real-time; and Operate, an end-to-end solution for multi-site workspace operators for managing day-to-day operations. It serves multi-site flexible workspace providers, commercial real estate providers, and multi-site landlords. The company was founded in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

essensys generates revenue through a subscription-based model for its software solutions, which includes monthly fees for access to its workspace management platform. Additionally, the company earns income from selling connectivity services, such as high-speed internet and telecommunications solutions, to its clients. Key revenue streams include recurring revenues from software-as-a-service (SaaS) subscriptions, one-time fees for installation and setup of IT infrastructure, and ongoing support and maintenance services. Significant partnerships with commercial property owners and flexible workspace operators enhance its market reach, contributing to its earnings by creating a steady demand for its integrated solutions.

essensys PLC Financial Statement Overview

Summary

Core profitability remains weak with ongoing net losses and a recent revenue decline, which weighs heavily on the score. Offsetting this, leverage is low and 2025 operating/free cash flow turned positive, suggesting a stabilization/turnaround effort, though cash flow has been volatile.

Income Statement

Profitability remains weak with consistent net losses across the period and negative operating profit in every year since 2021. Revenue momentum has deteriorated, with the latest annual revenue down ~16% versus the prior year, following a smaller decline the year before. A key positive is the sharp improvement from the deep 2022–2023 loss levels (materially narrower losses in 2024–2025), but the business has not yet returned to sustainable profitability.

Balance Sheet

Leverage is low, with total debt modest relative to equity across the years provided (debt-to-equity stayed under ~0.15 in the historical annual data), which reduces financial risk. However, the equity base has fallen meaningfully from earlier years (notably from 2021–2022 levels to 2025), consistent with ongoing losses and/or balance sheet contraction, and returns on equity have been negative in recent years—signaling value dilution despite conservative debt.

Cash Flow

Cash generation improved materially in the most recent year: operating cash flow and free cash flow turned solidly positive in 2025 (after negative operating cash flow and negative free cash flow in 2022–2024). The main concern is volatility—cash flow swung sharply year to year, and 2025 free cash flow still declined versus the prior year (per the provided growth rate), indicating the turnaround may be uneven even as near-term cash discipline improves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.18M	19.18M	24.13M	25.25M	23.30M	21.98M
Gross Profit	6.90M	6.90M	13.74M	14.91M	14.11M	14.23M
EBITDA	-1.30M	-1.30M	-637.00K	-10.46M	-7.81M	681.00K
Net Income	-5.57M	-5.57M	-3.31M	-15.71M	-10.80M	-3.34M
Balance Sheet
Total Assets	16.18M	16.18M	22.72M	27.52M	47.33M	52.20M
Cash, Cash Equivalents and Short-Term Investments	1.78M	1.78M	3.10M	7.86M	24.12M	36.90M
Total Debt	673.00K	673.00K	1.44M	1.57M	3.13M	1.94M
Total Liabilities	4.68M	4.68M	5.96M	6.93M	11.85M	7.27M
Stockholders Equity	11.50M	11.50M	16.76M	20.58M	35.48M	44.92M
Cash Flow
Free Cash Flow	1.80M	1.80M	-3.18M	-14.31M	-12.43M	-1.39M
Operating Cash Flow	2.25M	2.25M	-1.07M	-9.84M	-6.80M	1.89M
Investing Cash Flow	-2.55M	-2.55M	-2.09M	-4.14M	-5.53M	-3.28M
Financing Cash Flow	-999.00K	-999.00K	-1.54M	-2.00M	-1.04M	29.82M

essensys PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ESYS, the sentiment is Negative. The current price of 14.5 is below the 20-day moving average (MA) of 15.13, below the 50-day MA of 15.28, and below the 200-day MA of 22.65, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 21.20 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ESYS.

essensys PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAAS	63 Neutral	£109.57M	-138.97	-1.08%	2.00%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£197.76M	47.35	9.59%	0.80%	22.80%	-32.13%
SPA	58 Neutral	£75.97M	2,266.67	0.15%	―	5.35%	-97.78%
ESYS	47 Neutral	£9.40M	-1.68	―	―	-5.21%	76.14%
PULS	47 Neutral	£52.20M	-7.06	-16.92%	―	-1.09%	-6.65%
TERN	43 Neutral	£4.04M	-7.50	-19.70%	―	-77.04%	86.67%

essensys PLC Corporate Events

Essensys Publishes 2025 Annual Report and Sets Hybrid AGM for January

Essensys plc has announced the publication and posting of its Annual Report and Accounts for the year ended 31 July 2025, along with the notice of its 2025 Annual General Meeting scheduled for 30 January 2026 at its London offices. To broaden access and engagement, the company will stream the AGM via the Investor Meet Company platform, enabling shareholders to follow proceedings and submit questions remotely while encouraging them to exercise their voting rights in advance by proxy, signalling a continued emphasis on transparent governance and investor outreach as it pursues long-term growth in the flexible workspace technology sector.

The most recent analyst rating on (GB:ESYS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on essensys PLC stock, see the GB:ESYS Stock Forecast page.

Essensys Returns to EBITDA Profit but Warns on FY26 as Revenue Falls and Founder Tables Possible Takeover Offer

Essensys reported a sharp decline in FY25 revenue to £19.2m and a reduction in annual recurring revenue following the expected downsizing of a major customer and a deliberate shift away from lower-margin hardware and network sales, but achieved a return to positive adjusted EBITDA of £1.3m, improved gross margins to 59%, and completed a data centre decommissioning that delivers £1.5m in annualised cost savings. The group launched its new elumo product with initial sales across core markets, restructured around its two core platforms to drive scalable operations and further cost savings, and strengthened its board, but warned that FY26 performance is expected to fall materially below management expectations amid macroeconomic headwinds and slower-than-hoped adoption of elumo, while founder and non-executive director Mark Furness has tabled a preliminary proposal for a possible all-cash takeover at 20 pence per share.

The most recent analyst rating on (GB:ESYS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on essensys PLC stock, see the GB:ESYS Stock Forecast page.

Essensys Wins Extension to Founder’s Takeover Deadline

Essensys plc has secured an extension to the formal ‘put up or shut up’ deadline for a potential takeover bid from its founder and non-executive director Mark Furness, who in November submitted a preliminary, non-binding proposal for an all-cash offer at 20 pence per share. Following consent from the UK Takeover Panel, Furness now has until 5 p.m. on 23 January 2026 to either announce a firm intention to make an offer for the whole company or to confirm that he will not proceed, with the board stressing that there is no certainty a binding bid will emerge or on what terms, leaving shareholders and other stakeholders facing continued uncertainty over the company’s ownership and strategic direction.

The most recent analyst rating on (GB:ESYS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on essensys PLC stock, see the GB:ESYS Stock Forecast page.

essensys plc Announces New Share Issuance Following Employee Option Exercise

essensys plc has announced the exercise of employee share options, resulting in the issuance of 44,158 new ordinary shares, which will be admitted to trading on the AIM market of the London Stock Exchange. This move increases the company’s total issued share capital to 64,795,988 ordinary shares, all of which have voting rights. This development reflects essensys’ ongoing operational adjustments and could impact shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:ESYS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on essensys PLC stock, see the GB:ESYS Stock Forecast page.

essensys PLC Reports FY26 Trading Update and Potential Acquisition Offer

essensys PLC announced a trading update for FY26, revealing revenue of £4.1m in the first quarter, aligning with management expectations. However, the macroeconomic environment has slowed adoption of its new product, elumo, impacting sales forecasts. A customer contract worth £0.9m annually will not be renewed, but overall churn remains stable. The company is restructuring to focus on its core products, anticipating cost savings and exploring a debt facility to support growth. Additionally, a possible all-cash offer for the company is under preliminary discussion, led by founder Mark Furness, though no firm offer is guaranteed at this stage.

The most recent analyst rating on (GB:ESYS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on essensys PLC stock, see the GB:ESYS Stock Forecast page.