GB Group’s H1 FY26: modest growth under the bonnet, stronger profitability and a clearer path to acceleration
GB Group (GBG) has reported a steady first half to FY26 with signs of improving momentum, particularly in the Americas and around its new GBG Go platform. The company has reiterated guidance, flagging a mid-single-digit acceleration in constant currency revenue growth for the second half and performance for FY26 in line with current market expectations.
Quick jargon checks for readers: “constant currency” strips out exchange-rate swings to show underlying growth; “adjusted operating profit” excludes amortisation of acquired intangibles, share-based payments and exceptional items; “gross margin” is revenue less direct costs as a percentage of revenue; “net debt to EBITDA” is a leverage ratio; and “NRR” (net revenue retention) measures how spend from existing customers changes year-on-year.
Key numbers investors should know
| Metric | 1H FY26 | 1H FY25 | Change |
|---|---|---|---|
| Revenue | £135.5 million | £136.9 million | (1.0)% |
| Revenue (constant currency) | £135.5 million | £133.2 million | +1.8% |
| Gross margin | 70.0% | 69.6% | +40bps |
| Adjusted operating profit | £29.5 million | £29.0 million | +1.9% (+4.6% CC) |
| Adjusted diluted EPS | 8.2p | 7.3p | +12.6% |
| Statutory profit before tax | £4.1 million | £5.6 million | (26.8)% |
| Diluted EPS (statutory) | 0.8p | 0.6p | +33.3% |
| Net debt | £66.6 million | £71.9 million | Improved |
| Leverage (net debt / EBITDA) | 1.0x | 0.7x (FY25) | – |
| Rolling 12‑month cash conversion | 85.8% | 83.7% | +210bps |
Two known drags are worth isolating. Adjusting for last year’s exceptionally high project volumes with Santander UK and the planned retirement of a legacy Compliance platform, group revenue growth would have been 4.4%.
What moved the dial in H1: segment trends and mix
- Identity: £86.0 million revenue, up 0.4% on a constant currency basis, but up 4.5% on an “underlying” view excluding the Santander project and planned platform retirement. The Americas were marginally negative as the turnaround got going, while EMEA and APAC led with better new logo and NRR trends.
- Location: £40.7 million revenue, up 4.8% at constant currency. Early softness in retail and e-commerce tariffs in Q1 was offset by demand via channel partners for data quality capabilities.
- Global Fraud Solutions (GFS): £8.9 million revenue, up 1.4% at constant currency, with strong renewals and slower new logos and services work.
Mix remains attractive: 94.4% of revenue comes from subscription and consumption models, reinforcing GBG’s 95% repeatable revenue profile. NRR was 97.8% (FY25: 101.4%), lower as expected due to the one-off Santander spike, platform retirement and Q1 tariff headwinds. New logo contribution improved to 4.5%, including a win with one of the largest tech companies in the world (name not disclosed).
Americas turnaround: the biggest swing factor for H2
The Americas is GBG’s largest opportunity and the biggest source of debate. Under new leadership from January 2025, GBG has strengthened go-to-market, customer success and data science, and started shifting customers from usage-only to multi-year subscriptions to improve visibility. The sales approach has been reweighted to focus on higher-potential accounts, with eight renewals now including minimum volume commitments, deeper public sector traction, and stronger pipelines from a low base.
Notably, GBG is integrating Americas Identity and Location under a combined sales structure to unlock cross-sell into financial services, gaming and public sector. Management expects the Americas to return to growth in the second half.
GBG Go: platform strategy gaining early traction
Launched in April 2025, GBG Go is the single global identity platform designed to simplify onboarding, reduce fraud and meet regulatory requirements. GBG has secured 18 new logo wins and identified more than 65 qualified opportunities. The company is on track to retire the first two legacy platforms this year, a key milestone for simplification and scalability.
The new Digital ID module – delivered with partners Trinsic and MATTR – enables verification via trusted digital credentials such as eIDs, mobile driving licences and BankIDs. GBG is also doubling the throughput of new document additions, targeting a 90% improvement in fraud detection, and introducing AI-led orchestration to optimise verification flows.
Profitability and cash: operational discipline showing through
Adjusted operating profit rose 1.9% to £29.5 million, or 4.6% on a constant currency basis, with gross margin up to 70.0% thanks to pricing and careful data/cloud cost control. Operating expenses were well managed, up just 1.1% on a constant currency basis.
Statutory profit lines were lower due to £3.6 million of exceptional items – £1.4 million related to moving from AIM to the Main Market, and £2.2 million for transformation and simplification – and ongoing amortisation of acquired intangibles (£16.5 million). Net finance costs fell to £2.6 million on lower rates and debt. The adjusted effective tax rate fell to 23.0% (guidance c.25% for the full year).
Capital allocation: buybacks, bolt-ons and balance sheet headroom
GBG used its sturdy cash generation to return capital and invest. By 30 September, the group had repurchased and cancelled 7.0 million shares at a cost of £17.5 million. Post period end it bought a further 6.5 million shares for £15.6 million, and today announced an additional buyback of up to £10 million. A final FY25 dividend of £10.9 million was paid in the half.
On M&A, GBG completed the bolt-on acquisition of DataTools Pty Ltd in ANZ for £7.9 million, adding address validation and data quality capability in a region where GBG is already enjoying strong growth. Net debt was £66.6 million with £84.8 million of the £175 million RCF undrawn at 30 September, and leverage at 1.0x.
Governance and listing: upgraded market profile
GBG completed its move from AIM to the Main Market on 30 October 2025, targeting broader investor access, potential index inclusion and improved liquidity. The interim results have been reviewed by PwC, with no issues raised.
Outlook: guidance reiterated, acceleration targeted in H2
Management is “confident” of delivering FY26 in line with market expectations and expects constant currency revenue growth to accelerate to a mid-single-digit percentage in the second half. The improved sales pipeline, progress in the Americas, and benefits from the simpler operating model underpin that stance.
My take: why this matters for GBG’s equity story
- Positives: underlying growth looks healthier than the headline – 4.4% once you strip out the known drags. Margins are nudging up, cash conversion is strong at 85.8%, and buybacks signal confidence from the Board.
- Strategic momentum: GBG Go’s early logo wins and the planned retirement of legacy platforms support a cleaner, more scalable product set. The Americas turnaround – subscriptions over consumption, integrated sales, stronger public sector channel – is the key lever for H2 and beyond.
- Watch-outs: NRR at 97.8% reflects the reset from last year’s one-off project and platform retirement; it will be important to see this stabilise or improve. Leverage has stepped up to 1.0x with capital returns and M&A – still comfortable, but it reduces optionality if macro turns. Execution risk around platform migration and US sales retooling remains a factor.
What to track next quarter
- Americas growth turning positive and evidence of subscription mix shift.
- GBG Go conversions from existing customers and the pipeline of 65+ qualified opportunities converting to revenue.
- NRR trend and progress on the remaining platform retirements.
- Integration benefits from DataTools in ANZ and cross-sell into identity workflows.
- Cash generation staying above the 80% mark and leverage held around 1.0x.
Bottom line
This is a tidy set of half-year numbers that show operational grip: slightly higher margins, stronger EPS, solid cash, and a clearer route to acceleration in H2. The investment case hangs on two things now – delivering the Americas turnaround and scaling GBG Go. On both, GBG has laid out practical steps and early progress. If execution holds, FY26 can be a reset year that builds into more durable growth from FY27.
