Germany-based database technology company Exasol reported a 19% year-over-year decline in first-half revenue to €19 million, driven by a sharp drop in non-recurring sales including hardware and services.
Annual recurring revenue (ARR) remained nearly flat at €37.9 million as of June 30, 2026, compared with the prior-year period, while the rolling ARR churn rate improved to 10% from 24% at the end of 2025. The company added eleven new customers during the six-month period, primarily in data sovereignty and agentic AI workloads, though expansion with existing clients underperformed due to reduced investment in on-premises infrastructure and delays in a strategic partnership rollout.
For the full year 2026, Exasol expects ARR to remain within a narrow band of minus 2% to plus 2%, while total revenue is projected to decline in the upper-single-digit percentage range. The company narrowed its full-year EBITDA guidance to a range of €3.0 million to €3.5 million, citing weaker non-recurring revenue contributions and slower-than-anticipated adoption of new offerings.
The revenue decline follows broader enterprise caution toward capital expenditures in IT infrastructure, particularly for on-premises solutions, as organizations prioritize cloud and operational efficiency. Exasol’s focus on data sovereignty and AI workloads has supported customer additions but has yet to offset the broader softness in discretionary spending on hardware and professional services.
