GB GROUP (GBG) H2 2026 earnings summary

Executive summary

• Achieved FY 2026 revenue of GBP 285 million, up 3.2% year-over-year, with core segment acceleration in H2 and adjusted operating profit of GBP 67.5 million at a 23.7% margin, meeting guidance.

• Returned GBP 56 million to shareholders via dividends and buybacks, and completed the acquisition of DataTools in Australia.

• Strategic partnership with Equifax enhances U.S. data access and opens new verticals, supporting growth in Americas.

• Launched GBG Go, an AI-powered adaptive identity platform, securing over 100 customer wins including Uber, and announced a one-off GBP 6 million investment to accelerate its roadmap.

• Americas Identity segment returned to growth in Q4, supported by strengthened leadership and improved sales productivity.

Financial highlights

• Revenue grew 3.2% year-over-year to GBP 285 million; core segments (identity and location) grew 3.4% excluding DataTools and compliance platform drag.

• Adjusted operating profit reached GBP 67.5 million, with margin at 23.7%.

• Diluted EPS increased 9.3% to GBP 0.191; net debt at GBP 80.1 million, net debt/EBITDA at 1.15x.

• Cash conversion of adjusted operating profit was 87%.

• 95% of revenue from repeatable sources (subscription/consumption), with 56% from subscriptions.

Outlook and guidance

• FY 2027 guidance: mid-single-digit revenue growth, margin impacted by GBP 6 million investment (21%-22%), rebounding to 23%-24% in FY 2028.

• Midterm (FY 2029) targets: 7%-9% revenue growth, operating margin above 24%.

• Cash conversion expected to remain around 90%.