PayPoint (PAY) Q1 2026 TU earnings summary

Executive summary

• Net revenue rose 7.5% year-over-year to £42.2 million, driven by E-commerce, Payments & Banking, and Love2shop divisions.

• Growth initiatives include new agreements in Parcels, Open Banking wins, and expanded retailer services.

• Share buyback program increased, targeting at least £30 million per annum and a 20% equity base reduction by March 2028.

• Dividend increased to 19.6p per share, payable in two instalments.

Financial highlights

• Shopping net revenue up 0.6% to £16.5 million; E-commerce up 20.8% to £5.1 million; Payments & Banking up 4.9% to £12.8 million; Love2shop up 21.7% to £7.8 million, all year-over-year.

• Group net corporate debt at £109.6 million as of 30 June 2025, up from £97.4 million at 31 March 2025.

• Card payments net revenue fell 1.3% to £8.2 million; card processed value down 3.6% to £1.7 billion year-over-year.

• Service fee net revenue increased 7.8% to £5.7 million, driven by site growth and RPI fee increase.

Outlook and guidance

• Confident in achieving £100m EBITDA target for the current year and longer-term growth to FY28.

• Focus on ramping up parcel volumes, expanding Open Banking, and launching new banking services.

• Dividend cover ratio expected to grow from 1.5–2.0x to over 2.0x by FY28.

• Leverage ratio to be maintained at 1.2–1.5x net debt/EBITDA.