IP Group (IPO) H2 2025 earnings summary

Executive summary

• NAV per share increased 13% to 110.4p, reaching £975.1m, driven by value crystallization from a Pfizer obesity drug royalty interest following Metsera's acquisition and IPO.

• Generated £68.1m in cash exits, enabling reinvestment in high-conviction opportunities and share buybacks, with Hinge Health's NYSE IPO and Monolith's sale to CoreWeave as notable exits.

• Portfolio companies raised over £914m in third-party capital, up 17% year-over-year, with strong syndicates and notable funding rounds (e.g., Artios, Oxa, Microbiotica).

• Maintained focus on deep tech, clean tech, and life sciences, with limited exposure to application layer SaaS, positioning for AI-driven demand in infrastructure and advanced materials.

• Maintained a strong balance sheet with gross cash of £211.0m at year-end.

Financial highlights

• NAV per share increased 13% year-over-year to 110.4p, with overall profit of £66.9m (2024: loss of £207.0m).

• Overheads reduced to £15.9m, representing 1.6% of NAV, down from 22.1% of income two years prior.

• Portfolio value rose to £908.1m, with £70.5m invested and £68.1m realized in exits.

• Fair value gain of £64m, mainly from the Pfizer obesity royalty interest, now valued at £128m.

• Gross cash and deposits at year-end were £211.0m, supporting future investments and buybacks.

Outlook and guidance

• Priorities for 2026 include continued NAV per share growth, disciplined capital deployment, and maintaining balance sheet flexibility.

• Targeting over £250m in realizations between 2025 and end-2027, with a focus on maturing portfolio companies and liquidity events.

• Plans to launch further share buybacks if discount to NAV persists and to make first investments from the Aberdeen partnership.

• Targeting EBITDA break-even by FY27 and launching new scale-up capital vehicles.