Moonpig Exceeds Estimates
Moonpig Group's FY26 profit beats estimates; shares jump and buybacks planned.
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Key Points
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Moonpig's adjusted EBITDA margin rose to 28% in FY26, up from 27.6% a year earlier and ahead of analysts' projections (~27.3%).
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Moonpig brand revenue grew by 8.6% in the year, with the Dutch unit Greetz returning to growth at 1.5% in constant currency.
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The group completed about £60 million of share buybacks during the year and signalled up to £65 million more in FY27.
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Net debt stood at £108.1 million with net leverage around 1.03 times adjusted EBITDA, roughly in line with the 1.0x target.
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CEO Catherine Faiers said that since joining in March, her conviction in Moonpig's opportunities has only grown, underscoring confidence in the investment in growth initiatives.
Moonpig Group shares surged more than 10% on June 25 after the online greeting card and gifting company posted full-year profits that beat analyst forecasts on every major measure Investing.com. Revenue for the year ended April 30, 2026, climbed 6.5% to £373 million, while adjusted EBITDA hit £104.6 million — topping the £101.6 million consensus — and adjusted earnings per share jumped 19.5% to 18 pence City AM.
Reported profit before tax swung to £68.9 million from just £3.0 million a year earlier, when a £56.7 million goodwill write-down had battered the bottom line. The company declared a total dividend of 3.75 pence per share — a 25% increase — and announced up to £65 million of share buybacks for FY27 City AM.
New CEO's First Full Year Delivers a Clean Beat
Catherine Faiers, who joined from Auto Trader and took the helm on March 1, 2026, set an immediate positive tone. "Since joining the business in March, my conviction in the opportunities ahead has only grown," she said, pointing to a "powerful foundation to deepen customer relationships" City AM. Faiers inherited a business still digesting its 2022 acquisitions but quickly refocused attention on the core card and gifting engine.
The core Moonpig brand grew revenue 8.6% in the year. Even the Dutch unit Greetz, which had previously struggled, returned to growth at 1.5% in constant currency Investing.com. Active customers across both brands reached 12.3 million. Average order value rose 5.7%, driven by tech-led upselling and AI-powered features like automated card message tools and AI-generated stickers City AM.
Tech and Upselling Push Margins to Record Levels
Moonpig's adjusted EBITDA margin reached 28.0%, up from 27.6% a year earlier and ahead of the roughly 27.3% analysts had expected TipRanks. The company credited this to its "gift attach" strategy — persuading card buyers to add physical gifts. The gift attach rate hit 17.8% in the first half, with further momentum in the second half.
Moonpig expanded its gifting catalogue through partnerships with major UK retailers including Next and Boots City AM. Free cash flow rose to £73.5 million for the year. Net debt stood at £108.1 million, giving net leverage of 1.03 times adjusted EBITDA — just above the company's 1.0x target. CFO Andy MacKinnon oversaw a "disciplined approach to capital allocation" throughout the transition.
£125 Million in Buybacks Signals a Cash-Generation Machine
Moonpig completed around £60 million of share buybacks during FY26. It then wasted no time signalling more. The board authorized up to £65 million of buybacks for FY27, with the first £32.5 million tranche already underway as of May 6, 2026 Investing.com. Analyst Anubhav Malhotra at Panmure Liberum credited the buyback program as a key driver of the 19.5% surge in adjusted EPS City AM.
Analyst Mark Crouch at eToro said the results "clearly struck a chord" because Moonpig is now delivering "without unpleasant surprises" City AM. The absence of any further impairment charge on the Experiences division — which houses Red Letter Days and Buyagift — was seen as a signal that management believes the worst is behind it. That unit still saw mid-single-digit revenue declines for the full year, but investors chose to focus on the core business momentum.
Moonpig Eyes Mid-to-High Single-Digit Growth Into FY27
Looking ahead, Moonpig kept its guidance positive. The company targets mid-to-high single-digit revenue growth for FY27 and expects to hold its EBITDA margin at around 28% Market Screener. Trading for the new financial year is described as in line with expectations. Faiers said the group has the brand strength, customer data, and cash flow to keep investing in growth.
The shares hit 242.2 pence in early London trading on June 25 — the stock's biggest single-day gain in over 18 months Investing.com. With £73.5 million in free cash flow, a shrinking share count, and a reinvigorated CEO, investors appear to be repricing Moonpig less as a seasonal card retailer and more as a high-margin technology platform in the gifting market.
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