IFS announced its H1 2025 results, reporting double-digit growth across key performance metrics. The company attributes the growth to increased adoption of its enterprise cloud and Industrial AI software.
IFS H1 2025 Key Financial Results:
- Annual Recurring Revenue (ARR): +30% YoY
- Cloud Revenue: +37% YoY
- Recurring Revenue: +24% YoY (now 82% of total revenue)

IFS develops software focused on the operational needs of industrial businesses, supporting the systems that run their daily operations. Average customer deal size from new customers continued to grow significantly in the first half of the year, with 130 leading industrial brands choosing IFS in H1, including: Arcelor Mittal, Callaway, Collins Aerospace, Hitachi Energy, Japan Airlines, TotalEnergies.
In addition to continued organic growth, IFS extended its Industrial AI lead with the acquisition of TheLoops, launching the first agentic AI workforce for complex industries. Complementing this, the launch of Nexus Black, IFS’s AI innovation accelerator, is already delivering bespoke, scalable solutions that traditional platforms cannot match.
Together, Nexus Black and TheLoops mark a new era for enterprise software, where self-learning AI agents operate in real time inside customer environments, reducing manual effort and accelerating decisions from edge to boardroom
“Our phenomenal growth proves customers are done with AI theory. They want AI that solves real problems, at scale, and are placing their trust in IFS to lead them through the Industrial AI revolution,” said Mark Moffat, CEO of IFS. “The connection between our performance and AI innovation is unmistakable. As demand intensifies, IFS stands apart, thanks to our domain depth, contextual intelligence, and unwavering focus on industry.”
Matthias Heiden, CFO of IFS commented: “Our fiscal performance reflects the fast-growth, differentiated Industrial AI leader that IFS has become, with a disciplined financial model rooted in recurring revenue, resilient operations, and scale-ready agility. These same principles are built into our solutions to empower our customers to drive long-term value. With this strong foundation, we’re not just growing, we’re redefining what’s possible for industrial enterprises.”
Demand for AI-powered solutions from prior acquisitions – Copperleaf, Poka, Ultimo, P2 and EmpowerMX – remains strong and continues to contribute meaningfully to IFS’s growth. IFS’s thriving global network of strategic partners also played a key role in enabling continued scaling and deal size growth.