Ten Lifestyle Group (TENG) H1 2025 earnings summary

Executive summary

• Net Revenue for H1 2025 increased 3% year-over-year to £31.8m (5% at constant currency), with Adjusted EBITDA up to £6.0m and margin rising to 18.9%.

• Profit before tax rose to £1.1m from £0.3m, with cash and equivalents at £11.2m and net cash at £6.8m, supported by a £5.7m secondary placing and repayment of all related party loans.

• Significant contract wins and renewals, including Extra Large US and UHNW wealth manager contracts, underpin growth into FY 2026.

• Maintained investment in AI-driven technology, launching Agentic AI in beta with end-to-end booking via WhatsApp and Ten Platform.

• Active Members grew to 354k from 349k at FY 2024, with differentiated offerings for high-value segments.

Financial highlights

• Net Revenue up £0.9m year-over-year; Adjusted EBITDA up £0.7m to £6.0m, margin improved to 18.9% from 17.2% year-over-year.

• Profit before tax was £1.1m, up from £0.3m; basic and diluted EPS at 1.1p.

• Operating expenses flat at £25.8m; share-based payments halved to £0.2m.

• Cash flow from operations £2.3m; net increase in cash/equivalents of £1.9m.

• Capital investment in technology and platforms totaled £6.6m, with £3.2m capitalised.

Outlook and guidance

• Profitable growth underpinned into FY 2026 by new and renewed contracts, including a high-potential UHNW client contract and multi-year renewals.

• Board expectations for the full year remain unchanged; net cash generation expected in H2 2025.

• Medium-term targets: £100m+ Net Revenue and Adjusted EBITDA margin of 30%+.

• First roll-outs of Agentic AI product expected in H2 2025.