The Pebble Group (PEBB) H2 2025 earnings summary

Executive summary

• Operates in the $50 billion global promotional products sector, with a strong presence in North America and a focus on technology-driven solutions and long-term client relationships.

• Two main businesses: Facilisgroup (SaaS, technology, buying group) and Brand Addition (global promotional products for large corporates).

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

• Maintained stable revenues in a challenging macroeconomic environment, emphasizing client and partner retention, operational excellence, and new contract wins offsetting softer spend.

• Foundations for growth are complete, with ongoing investment in technology, team, and playbook.

Financial highlights

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

• Free cash flow conversion improved from 68% in 2024 to 91% in 2025.

• Brand Addition achieved a gross profit margin of 37% in 2025, up from 30% in 2022.

• Adjusted EBITDA was £15.8m, down 5.4% year-over-year; EBITDA split between Brand Addition and Facilisgroup is now more balanced.

• Significant capital returns to shareholders: GBP 3 million dividend, GBP 5 million buyback in 2025, and £11.7m total capital returned, up from £3.4m in FY24.

Outlook and guidance

• Focus for 2026 is on accelerating organic and profitable growth at Facilisgroup via LTV/CAC measurement and growing revenue at Brand Addition while sustaining margin gains.

• Continued investment in sales and marketing to drive partner acquisition at Facilisgroup.

• Brand Addition targets 5% organic revenue growth and aims to maintain improved margins.

• Dividend to be maintained or increased at 2025 levels, with ongoing share buyback program.

• FY26 guidance includes a 24% tax rate, £2.0m depreciation, £6.3m amortisation, and £2.0m share-based payments charge.