The Pebble Group (PEBB) H2 2025 earnings summary

Executive summary

• Full year 2025 results show resilience in a challenging market, with both main business units—Facilisgroup and Brand Addition—demonstrating strong retention and cash generation.

• Achieved strong cash generation and improved margins, with disciplined investment in profitable growth and significant capital returns to shareholders in FY25.

• Revenue remained flat year-over-year, but gross margin and EBITDA improved, especially at Brand Addition.

• Foundations for growth are complete, with high client and partner retention and increased new contract wins.

• Strategic investments in Facilisgroup have positioned the business for accelerated growth in 2026 and beyond.

Financial highlights

• Revenue was £124.7m, down 0.5% year-over-year; gross margin improved by 1.3ppt to 45.6%.

• Free cash conversion reached 91%, supporting increased shareholder returns.

• Adjusted EBITDA was £15.8m, down 5.4% year-over-year; free cash flow conversion rose to 91% from 68%.

• Capital returns to shareholders totaled £11.7m, up from £3.4m in FY24.

• 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.

• Brand Addition aims for 5% revenue growth and maintains a 35% profit margin target for 2026.

• Dividend payments will be maintained, with a 50% increase already implemented.

• A £5 million share buyback program has been announced for the current year.

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