Why is the Nuix share price soaring 15% on Tuesday?

The Nuix Limited (ASX: NXL) share price is rising faster than any other stock in the S&P/ASX 200 Index (ASX: XJO) on Tuesday.

The ASX 200 tech share is currently up 15.05% to $2.37, while the ASX 200 is in the red, down 0.51%.

The Nuix share price fell sharply yesterday morning as the market digested the tech company's full-year FY25 results.

The stock fell 15% to an intraday low of $1.84 in the first hour of trading yesterday, before rapidly recovering to close just 3.7% lower.

With no fresh news from the investigative analytics and intelligence software provider today, it seems investors may be buying the dip.

Their exuberance has pushed the Nuix share price beyond its closing value of $2.17 on Friday before the report was released on Monday.

So, what's going on? And what was in Nuix's FY25 report?

Let's take a look.

Nuix share price storms 15% higher on Tuesday

Here are the highlights of the report:

• Annualised contract value (ACV) of $228.4 million as of 30 June, up 8% on the prior corresponding period (pcp)
• Revenue of $221.5 million, up 0.4% pcp
• Cash earnings before interest, tax, depreciation, and amortisation (EBITDA) of $37.2 million, up 24.5% pcp
• Statutory EBITDA of $47.6 million, down 14.8% pcp
• Statutory loss of ($9.2 million) compared to $5 million net profit after tax (NPAT) in FY24

What else happened in FY25?

Fewer multi-year deals led to relatively flat revenue in FY25.

Nuix Neo was the key driver of ACV growth for the year. Nuix Neo ACV grew to $28.1 million by 30 June, up 132% pcp.

There were 75 Nuix Neo customers at the end of the year, up from 23 in the pcp.

Net non-operational legal costs were $10.6 million, up 24%, mostly due to a class action and lower insurance recoveries during the year.

Nuix said statutory EBITDA was especially impacted by a big jump in the expensed proportion of research and development (R&D) spend during the period.

This was due to increased activity on customer improvements and further research on new development opportunities.

Nuix achieved both a positive underlying cash flow and positive overall cash flow for FY25.

Underlying cash flow fell to $20.1 million, down 18.6% pcp.

Nuix continues to fund software development costs from operating free cash flow.

Nuix had $40 million in cash on hand as of 30 June.

The Nuix share price fell 29% over FY25.

What did Nuix management say?

Nuix CEO Jonathan Rubinsztein commented:

Nuix is deliberately targeting larger, higher value contracts, offering bigger customers significant value realisation through further investment in innovation.

While in the short term this has meant lengthening procurement cycles for some customers, this strategic shift positions us to better
leverage our powerful technology to take full advantage of rapid growth in data volumes and evolving methods of extracting further meaning from complex data sets.

The strong adoption of Nuix Neo from our customer base has been particularly pleasing and remains central to our growth strategy.

What's next for Nuix?

Nuix said its core focus areas for FY26 would include continuing to deliver on its business transformation strategy, including continued focus on higher-value contracts and further development of Nuix Neo capabilities.

The company expects Nuix Neo to drive ACV growth next year.

Nuix is aiming for revenue growth to exceed operating cost growth, and for positive underlying cash flow for the full year.

Nuix share price snapshot

The Nuix share price is down 50% over the past 12 months and down 70% over the past five years.