Moonpig’s FY26 trading update: profits, cash and a fresh £65m buyback
Moonpig Group has stuck to the script in the second half and expects to hit FY26 guidance. Management is calling mid-single digit percentage growth in Group Adjusted EBITDA and says Adjusted EPS growth should land at the top end of the 8% to 12% range, helped by strong free cash flow and the accretive impact of share buybacks.
Capital returns are front and centre again. The Group is on track to complete £60 million of buybacks in FY26 and has unveiled a new programme of up to £65 million for FY27. With leverage expected to be around 1.1x Adjusted EBITDA by 30 April 2026, the balance sheet looks comfortably geared for ongoing cash returns.
Guidance at a glance: EBITDA growth, EPS at the top end, leverage at c.1.1x
| Metric | Update/Guidance |
|---|---|
| Group Adjusted EBITDA growth (FY26) | Mid-single digit percentage |
| Adjusted EPS growth (FY26) | Top end of 8% to 12% range |
| Moonpig brand revenue (FY26) | High single digit percentage growth |
| Greetz revenue (FY26) | Low single digit percentage growth in constant currency, FX tailwind in sterling |
| Experiences revenue (FY26) | Mid-single digit percentage decrease, slightly ahead of prior expectations |
| FY26 buybacks | On course to complete £60 million by year-end |
| New buyback (FY27) | Up to £65 million |
| Leverage at 30 April 2026 | c.1.1x Adjusted EBITDA |
| Next scheduled event | Full year results on 25 June 2026 |
Quick jargon check: Adjusted EBITDA is a profit measure before interest, tax, depreciation and amortisation, adjusted for non-underlying items. Leverage here is net debt divided by Adjusted EBITDA. “Accretive” means buybacks are expected to lift EPS because shares are being retired.
Segment trends: cards resilient, experiences softer but stabilising
Moonpig brand – high single digit revenue growth
The core UK cards and gifting engine is growing well. High single digit revenue growth suggests solid demand in the bread-and-butter Moonpig proposition, which is where the Group’s data, personalisation and next-day delivery advantages show through.
Greetz in the Netherlands – modest growth with FX help
Greetz is delivering low single digit growth in constant currency, with a foreign exchange translation boost when reported in sterling. That says the Dutch business is ticking along, if not racing, and the currency tailwind flatters the sterling headline.
Experiences (Buyagift and Red Letter Days) – still down year-on-year
Experiences has traded slightly ahead of previous expectations, yet the Group still guides to a mid-single digit revenue decrease for the full year. So directionally better than feared, but still a drag versus the cards-led businesses.
Cash generation and capital returns: buybacks do the heavy lifting
Management is leaning into its cash generative model. Completing £60 million of buybacks in FY26 and flagging a further up to £65 million for FY27 is a strong signal of confidence in ongoing free cash flow. With leverage expected at c.1.1x Adjusted EBITDA, there is room to keep rewarding shareholders without stretching the balance sheet.
Why it matters: buybacks reduce the share count, which can push Adjusted EPS growth towards the top end of guidance even if profit growth is more modest. That combination – steady EBITDA progress plus a lower share base – is doing the work for per-share returns.
CEO changeover: steady hand, brand strength and data-led growth
New CEO Catherine Faiers, who joined in early March, highlights the strength of Moonpig’s brands, its loyal customer base and the breadth of capability across the Group. She also points to proprietary data and relationships as levers to increase relevance and spark more creativity in how people celebrate and connect.
In short, the strategy remains consistent: use technology and data to deepen customer engagement in online cards and gifting. The tone is confident, backed by cash returns and stable leverage.
Why this update matters for shareholders
- EPS momentum – Management expects Adjusted EPS growth at the top end of 8% to 12%, helped by buybacks. That is a clear positive for per-share value.
- Balance sheet discipline – Leverage of c.1.1x Adjusted EBITDA is conservative, supporting continued investment and capital returns.
- Core growth holding up – High single digit revenue growth at the Moonpig brand suggests the core proposition is resonating.
- Experiences still a headwind – Despite trading slightly ahead of expectations, Experiences is set for a mid-single digit revenue decline for the year. It remains the soft spot in the mix.
- Greetz only modest in CC – The Dutch business is growing, but only low single digit in constant currency. The sterling uplift is from FX translation, not underlying acceleration.
- Visibility – The Group reiterates it is trading in line with expectations and has put a date on full year results, which should bring more colour on margins and cash flow.
Key positives and watchouts
Positives
- Strong free cash flow backing sizeable buybacks – £60 million in FY26 and up to £65 million earmarked for FY27.
- EPS guidance at the top end, indicating effective capital allocation and cost control.
- Low leverage at c.1.1x gives optionality for further returns or investment.
Watchouts
- Experiences revenue is still declining year-on-year, even if less than previously feared.
- Greetz growth is modest in constant currency – the sterling boost could unwind if FX moves the other way.
- Absolute revenue, margin and free cash flow figures are not disclosed in this update, so investors must wait until June for detail.
What to watch on 25 June 2026
Full year results should fill in the blanks. Look for segment-level revenue and margin trends, the cash flow bridge that underpins the buybacks, year-end leverage, and any FY27 outlook to accompany the new up to £65 million programme. Delivery against the stated mid-single digit Adjusted EBITDA growth and top-end EPS outcome will be the proof point.
Quick glossary
- Adjusted EBITDA – Profit before interest, tax, depreciation and amortisation, adjusted for non-underlying items.
- Adjusted EPS – Earnings per share using adjusted profit, helpful for tracking underlying performance.
- Constant currency – Strips out exchange rate movements to show underlying growth.
- Accretive buyback – Repurchasing shares increases EPS because there are fewer shares in issue.
- Leverage (c.1.1x) – Net debt divided by Adjusted EBITDA, a gauge of balance sheet risk.
Bottom line: Moonpig is delivering steady profit growth, throwing off cash, and returning a lot of it via buybacks while keeping leverage low. The core cards-and-gifting engine looks healthy, Experiences less so, but the overall mix still supports rising EPS and shareholder returns.
