The Pebble Group (PEBB) H2 2025 earnings summary

Executive summary

• Full year 2025 results demonstrated resilience, strong cash generation, and improved margins, with disciplined investment in profitable growth and significant capital returns to shareholders.

• Both Facilisgroup and Brand Addition maintained high retention rates and long-term client relationships, with increased new contract wins.

• Strategic investments in Facilisgroup are driving partner growth and positioning for accelerated revenue in 2026.

• Brand Addition demonstrated stability with flat revenue but improved gross margins and EBITDA.

Financial highlights

• Revenue was £124.7m, down 0.5% year-over-year, with gross margin improving by 1.3ppt to 45.6%.

• Adjusted EBITDA was £15.8m, down 5.4% year-over-year; free cash flow conversion rose to 91% from 68%.

• Dividend payments increased by 50% and a £5 million share buyback was announced.

• Capital returns to shareholders totaled £11.7m, up from £3.4m in FY24.

• Brand Addition gross margin improved to 37% in 2025, up from 28-30% in 2022.

Outlook and guidance

• Facilisgroup expects accelerated partner growth and revenue in 2026, with a focus on larger, higher-value partners.

• Brand Addition targets 5% revenue growth and maintains a 35% profit margin expectation for 2026.

• Guidance for FY26 includes stable central costs, increased share-based payment charges, and a 24% tax rate.

• Continued investment in organic growth, especially in Facilisgroup, with openness to M&A opportunities.