GB GROUP (GBG) H2 2025 earnings summary

Executive summary

• FY2025 revenue reached £282.7m, up 3% constant currency and 1.9% reported, with 95% from repeatable streams.

• Adjusted operating profit rose 9.5% to £67m, with margin expanding to 23.7%.

• Net revenue retention hit a record 101.1%, reflecting high customer satisfaction.

• Launched GBG GO, a global identity orchestration platform, with early customer wins and innovation focus.

• Strategic focus on global alignment, performance culture, simplification, and innovation, with strengthened leadership in the Americas.

Financial highlights

• Revenue up 1.9% reported, 3% constant currency; gross margin steady at 70%.

• Adjusted diluted EPS increased 14.9% to 17.4p; adjusted profit before tax up 15.2% to £60.1m.

• Net debt reduced to £48.5m, with net debt/EBITDA leverage at 0.7x.

• Cash conversion at 91.3%; adjusted free cash flow of £48.5m.

• Final dividend of 4.4p per share recommended, up 4.8%; £10m share buyback completed.

Outlook and guidance

• FY2026 growth expected to be second-half weighted; FX translation a headwind.

• Outlook consistent with current market expectations; exceptional costs to remain similar.

• Intention to move from AIM to main market to access broader capital pools.

• Future adjusted effective tax rate expected at approximately 25%.