Moonpig Group Reports Strong Annual Results with Revenue Up 6.5% and Adjusted EPS Up 19.5%

Moonpig has delivered a solid set of annual results, and the headline numbers are genuinely strong. Revenue rose 6.5% to £373.0 million, while adjusted earnings per share – or adjusted EPS, a profit measure on a per-share basis – jumped 19.5% to 18.0p.

That matters because it shows this is not just a story of selling a few more birthday cards. Moonpig is growing sales, keeping profits moving in the right direction, generating plenty of cash and using that cash to reward shareholders through a higher dividend and more buybacks.

Moonpig FY26 results key numbers show strong profit and cash growth

Metric	FY26	FY25	Change
Revenue	£373.0 million	£350.1 million	+6.5%
Adjusted EBITDA	£104.6 million	£96.8 million	+8.1%
Adjusted EPS	18.0p	15.0p	+19.5%
Free Cash Flow	£73.5 million	£66.1 million	+11.2%
Dividend	3.75p	3.00p	+25.0%
Active customers	12.3 million	12.0 million	+2.8%
Net leverage	1.03x	0.99x	Up slightly

Moonpig revenue growth came from better spending, not just more orders

One of the most interesting parts of this update is how Moonpig grew. Orders at Moonpig and Greetz only rose 2.1% to 36.0 million, but average order value – AOV, or the average amount spent per order – climbed 5.7% to £9.32.

That tells you customers are spending more when they do buy. Management says that came from trading up to higher-priced gifts, larger card formats and more tracked next-day delivery, which brings in extra postage income too.

That is a good quality growth mix. It is usually better when a business can persuade customers to spend more through product and service improvements, rather than relying entirely on chasing volume at any cost.

Moonpig brand performance stayed impressive while Greetz returned to growth

The main Moonpig brand grew revenue by 8.6% to £284.5 million. That is the second consecutive year of 8.6% growth, which suggests the core UK business is holding up very nicely.

Greetz, the Netherlands brand, was steadier. Revenue rose 4.5% in sterling terms to £51.0 million, or 1.5% in local currency. That is not spectacular, but after a softer period it is better to see growth returning than slipping backwards.

There was also strong momentum in newer markets. Revenue from Ireland, Australia and the US rose 33.0% to £15.7 million, with Australia getting priority for extra customer acquisition spending.

Moonpig profit margins remain strong, but there is one clear pressure point

Adjusted EBITDA rose 8.1% to £104.6 million, and the adjusted EBITDA margin improved to 28.0% from 27.6%. For an online retailer, that is still a very healthy margin.

But there is a catch. Gross margin fell to 58.4% from 59.6%, a drop of 1.2 percentage points. Moonpig says that was driven by investment in delivery in the UK and the Netherlands, growth in lower-margin new markets, and higher labour costs.

In plain English, Moonpig is choosing to spend money now to improve the customer offer. That is not automatically a bad thing – especially when tracked delivery and faster fulfilment can strengthen the brand – but it does mean investors should not expect margin expansion to be effortless from here.

Management has already flagged that adjusted EBITDA margin in FY27 is expected to ease back towards its target range of 25% to 27%. So while FY26 looks strong, next year may be more about investing for longer-term growth than squeezing every last bit of short-term profit.

Experiences business is still the awkward bit in Moonpig results

If there is one softer area in this update, it is Experiences. Revenue there fell 4.5% to £37.4 million, although the second half decline of 1.9% was better than the first half drop of 8.9%.

The company says gross transaction value trends improved, but revenue is being held back by lower commission rates as it reshapes the offer. That is a polite way of saying the business is being improved, but it is not yet firing on all cylinders.

This matters because investors have already seen trouble here before. Last year included a £56.7 million goodwill impairment in Experiences, so it is encouraging that there was no impairment charge this year. Still, I would say this remains the part of the group that needs proving rather than praising.

Moonpig cash flow, dividend and share buybacks look shareholder friendly

This is where the results get even more attractive. Free Cash Flow rose 11.2% to £73.5 million, and cash conversion remained strong with 70% of adjusted EBITDA turning into free cash flow.

That cash is being put to work. Moonpig completed £60.2 million of share repurchases in FY26 and intends to buy back up to £65.0 million in FY27. It also proposed a total dividend of 3.75p per share, up 25.0%.

Buybacks matter here because they are already boosting per-share performance. Adjusted profit after tax rose 11.5%, but adjusted EPS grew much faster at 19.5%, helped by a 6.7% reduction in the weighted average number of shares used for the EPS calculation.

That is exactly what investors want to see from buybacks – not just activity, but real accretion to earnings per share.

Why Moonpig reported profit before tax surged from £3.0 million to £68.9 million

At first glance, the jump in reported profit before tax from £3.0 million to £68.9 million looks dramatic. It is dramatic, but part of the reason is accounting rather than a sudden explosion in trading.

Last year included a £56.7 million goodwill impairment linked to Experiences. This year there was no such charge. That makes the comparison look huge on a reported basis.

That is why the adjusted numbers are more useful for judging current trading performance. On that basis, adjusted profit before tax rose 13.4% to £76.5 million, which is still very respectable and probably the cleaner number to focus on.

Moonpig FY27 outlook is steady, but expectations need to stay sensible

The outlook statement was calm rather than flashy. Trading since the start of the year has been in line with expectations, and guidance for FY27 is unchanged.

Moonpig is still targeting mid-to-high single digit annual revenue growth, adjusted EBITDA margin of 25% to 27% and double-digit adjusted EPS growth over time. That sounds credible based on this update, although the expected margin easing means investors should watch whether revenue growth stays strong enough to offset those extra delivery and remuneration costs.

What Moonpig annual results mean for retail investors

My take is simple: this is a good results statement. The core Moonpig business looks healthy, customer numbers are growing, spending per order is rising, cash generation is strong and shareholder returns are generous.

The negatives are real but manageable. Margins are under a bit of pressure, Experiences is still a work in progress, and some of the reported profit jump is due to last year’s impairment absence. But none of that ruins the bigger picture.

For retail investors, the key point is that Moonpig still looks like a disciplined, cash-generative online platform with a strong brand and clear capital returns story. It is not a perfect business, but this RNS suggests it remains in decent shape and is still delivering where it counts.