Ebiquity (EBQ) H1 2025 earnings summary

Executive summary

• H1 revenue was flat at £37.9m; adjusted operating profit rose 11% to £2.6m and margin increased to 6.8%.

• Free cash flow turned positive at £0.7m, and net debt excluding restricted cash fell to £15.0m.

• UK & Ireland and Contract Compliance growth was offset by North America and APAC weakness; North America recovery actions are underway.

Financial highlights

• Revenue was £37.9m, unchanged YoY; project-related costs fell 11% to £3.3m and staff costs declined 1% to £25.0m.

• Adjusted operating profit rose to £2.6m from £2.3m, with margin up to 6.8% from 6.2%.

• Statutory loss after tax was £9.9m, primarily reflecting an £8.3m North America goodwill impairment; adjusted loss after tax was £0.6m.

• Net finance costs included a £1.2m non-cash FX loss on intercompany loans; excluding FX, interest costs were lower YoY.

Outlook and guidance

• FY 2025 guidance was revenue in the region of £75m and adjusted operating profit in the region of £5.5m.

• H2 priorities include operational improvements, deploying SPC metrics, launching AI client solutions and converting strategic pipeline opportunities.

• Global operations excluding North America were expected to deliver full-year revenue and operating profit growth, particularly in Marketing Effectiveness and Contract Compliance.

• 2026 priorities include North America recovery, integrated Marketing Effectiveness growth and AI deployment; a long-term strategy presentation was planned for H1 2026.