CAB Payments (CABP) H1 2025 earnings summary

Executive summary

• Completed transformation phase and entered growth-through-execution, focusing on expanding client base, product suite, and new markets, with 573 active clients (+36 YoY) and 52 new clients added in H1.

• Opened new offices in New York and Amsterdam, secured key licenses in New York and Nigeria, and expanded into markets including Malawi and Mozambique.

• Enhanced operational efficiency with 94% process automation, 54% reduction in onboarding times, and technology investments driving 20% increase in transaction processing with flat operating costs.

• Completed strategic restructuring, reducing headcount by ~100 FTE, focusing on client delivery and efficiency.

• Business model diversification reduced revenue concentration, with top 5 corridors now 27% of income, down from 32% YoY and 49% two years ago.

Financial highlights

• Total income for H1 2025 was £51.8m, up 3% HoH but down 8% YoY due to take rate compression and prior year dislocation.

• Adjusted EBITDA reached £13.1m (25.3% margin), up 8% HoH, with adjusted profit after tax at £5.4m (+9% HoH).

• Adjusted EPS increased to 2.1p (+9% HoH), reported EPS 0.9p, down 44% HoH and 78% YoY.

• Free cash flow was £9.5m, with cash conversion at 72%, up from 50% in both halves of 2024.

• Average client deposits reached £1.5bn, up 4% vs 2024.

Outlook and guidance

• Expect acceleration of growth in H2 and overall 2025, with strong client-driven momentum, product adoption, and new market entry.

• Staff costs (excluding variable pay) expected to remain broadly flat YoY for 2025.

• Capex guidance maintained at under £8m for 2025, focused on product capability.

• Continued investment in technology and scalable platforms to support sustainable, profitable growth.