Moonpig Group (MOON) H2 2025 Q&A earnings summary

Executive summary

• Delivered strong FY2025 results with Moonpig revenue up 8.6% and group adjusted EBITDA margin at 27.6%, despite a challenging consumer environment.

• Active customer base grew 4.1% to 12.0 million, with Plus subscribers up 70% to 920,000 and strong customer acquisition driving growth.

• Significant free cash flow enabled shareholder distributions, including a £60 million buyback program, inaugural dividend, and ongoing capital returns.

• Technology and data, including AI-driven features, improved customer experience and operational efficiency.

• CEO announced a planned succession, citing strong business momentum and a robust leadership team.

Financial highlights

• Group revenue reached £350.1m, up 4.4% year-over-year excluding non-recurring items, with Moonpig brand revenue up 8.6%.

• Adjusted EBITDA was £96.8m (27.6% margin), and adjusted EPS grew 18.1% to 15.0p.

• Free cash flow grew to £66.1m, reflecting high profitability and low capital requirements.

• Net debt to adjusted EBITDA improved to 0.99x at year-end.

• Greetz revenue declined 4.7% to £48.9m, while Experiences revenue fell 19.3% to £39.2m.

Outlook and guidance

• FY26 guidance: Group adjusted EBITDA to grow mid-single digit %, adjusted EPS to rise 8–12%.

• Medium-term targets: double-digit revenue growth, adjusted EBITDA margin 25–27%, mid-teens adjusted EPS growth.

• Average order value expected to grow 4%-6% annually, driven by increasing gift attach rates.

• Capex expected at upper half of 4–5% of revenue in FY26–27.

• Free cash flow generation expected to remain strong, with slightly higher capital expenditure in FY2027.