The Pebble Group (PEBB) H2 2025 earnings summary

Executive summary

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

• Both main segments, Facilisgroup and Brand Addition, maintained high retention rates and recurring revenue streams, 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 flat performance due to pressure on existing Brand Addition customers, offset by new business wins.

• Group gross margin improved to 45.6%, with Brand Addition reaching 37% in 2025, up from 28-30% in 2022.

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

• Dividends increased by 50% and a GBP 5 million share buyback was announced, with total capital returns to shareholders of £11.7m.

• Operating profit was £7.4m, down from £8.6m in FY24.

Outlook and guidance

• Expecting acceleration in Facilisgroup partner growth and a return to revenue growth in 2026, with a focus on sustaining margin gains at Brand Addition.

• Brand Addition aims for 5% revenue growth and maintains a 35% profit margin target.

• Gross margin guidance for Brand Addition is set at 36%, with an aim to retain the 37% achieved in 2025.

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