Ebiquity (EBQ) H2 2025 earnings summary

Executive summary

• FY2025 revenue was £73.4m; adjusted operating profit £4.6m and adjusted operating margin 6.3%, with a statutory operating loss of £8.6m. Results fell short amid North American weakness, an oversized cost base and insufficient profitability discipline.

• Cost restructuring, leadership changes, tighter cash controls and continued investment in media effectiveness and performance capabilities are in place entering 2026.

Financial highlights

• Revenue declined 4% to £73.4m from £76.8m; adjusted operating profit fell £3.3m, and adjusted margin was 6.3% versus 10.3% in FY2024.

• Statutory loss after tax was £14m, including a £10m North American goodwill impairment; adjusted loss after tax was £1.9m versus adjusted profit of £4.4m in FY2024.

• Project-related costs declined 10% to £6.6m; staff costs were broadly flat at £49.3m, while operating expenses rose slightly to £12.9m.

• Finance costs rose to £3.5m from £1.4m, mainly due to a £1.4m non-cash FX loss on intercompany loans; underlying interest costs declined YoY.

Outlook and guidance

• Trading was described as in line with the January update; management expects North America to return to profitable growth in 2026, while noting continued macro uncertainty.

• FY2026 priorities include converting larger multi-market Transform engagements, expanding Govern adoption and Total TV, and accelerating Grow sales, including in North America.

• Management gave no medium-term margin guidance; it described 20%–25% as a possible margin in normalized trading, not formal guidance.

• More 2026 trading detail and operational targets are planned for the June 29 Capital Markets Day, after H1 trading provides better visibility.