RentGuarantor revenue surges 250% as adjusted EBITDA turns positive

A sharp step up in trading

RentGuarantor Holdings PLC has reported a sizeable improvement in its first-half performance, with revenue rising by approximately 250% to £3.39 million for the six months ended 30 June 2026.

The provider of rent guarantee services completed 3,703 contracts during the period, up 179% from 1,326 a year earlier. It also secured a higher average contract price, which increased from £731 to £915.

That combination of greater volume and higher-value transactions pushed the business into positive adjusted EBITDA for the first time. Adjusted EBITDA, which measures earnings before interest, tax, depreciation and amortisation, was approximately £110,000 compared with a £124,000 loss in H1 2025.

These are unaudited interim figures, but they show a business beginning to demonstrate operational leverage. In plain English, revenue is growing faster than the underlying cost base.

RentGuarantor's key H1 2026 figures

Metric	H1 2026	H1 2025	Change
Revenue	£3.39 million	£0.97 million	Approximately 250% higher
Completed contracts	3,703	1,326	179% higher
Average contract price	£915	£731	25% higher
Adjusted EBITDA	Approximately £110,000 profit	£124,000 loss	Turned positive
Operating result	£11,458 loss	£442,727 loss	Substantially improved
Profit or loss before tax	£251,395 profit	£591,576 loss	Turned positive
Cash at period-end	£2.37 million	£0.73 million	Higher

The average contract price reached £1,001 in June 2026, suggesting that pricing remained firm towards the end of the half. However, the company did not disclose July or August contract volumes, so investors cannot yet judge whether the same pace has continued after the reporting date.

What drove the revenue growth?

Management pointed to stronger customer activity, wider market adoption and demand linked to the implementation of the Renters' Rights Act in May 2026.

RentGuarantor had 367 partnership agreements with letting agent entities or groups at the end of the period, compared with 224 a year earlier. These relationships matter because they can put the service in front of tenants and landlords at the point a property is being rented.

The company also invested in its brand, website and search marketing. More than 48% of website traffic now comes directly from brand awareness, while search accounts for over 33% of website sessions.

A partnership with the National Residential Landlords Association gives the business exposure to the organisation's 111,000-strong membership. RentGuarantor also extended its brand ambassador partnership with Rob Rinder MBE.

The figures indicate that growth is not coming from one source alone. More applications, more completed contracts, higher contract values and additional partnerships all contributed.

Profit quality needs a closer look

The move into positive adjusted EBITDA is encouraging because it reflects improved underlying trading. Still, investors should separate that development from the reported profit before tax of £251,395.

The statutory result benefited from a £272,357 positive revaluation of the remaining convertible loan note liability. Without that accounting movement, the company would not have reported the same level of net profit.

RentGuarantor's adjusted net profit of approximately £250,000 also includes this positive revaluation impact, according to the announcement. That makes the EBITDA improvement and near break-even operating result more useful indicators of day-to-day progress.

The group still recorded an operating loss of £11,458, although this was a major improvement from the £442,727 loss reported in H1 2025. The prior-year number included £226,500 of AIM admission costs. On the company's adjusted comparison, the operating loss narrowed from £218,000 to £11,000.

Cash has improved, but operations still consumed money

Cash and cash equivalents stood at £2.37 million on 30 June 2026, up from £2.05 million at the end of December 2025. This followed a £1 million equity placing before expenses in June.

Operating activities still consumed £240,944 during the half. That was considerably better than the £620,348 outflow in H1 2025, but it shows that positive adjusted EBITDA has not yet translated into positive operating cash flow.

After the period ended, approximately 60% of warrant holders exercised their rights and invested around £2.15 million. RentGuarantor said its bank balance was approximately £6 million on 10 August 2026.

The additional capital gives management greater room to invest in technology, product development and commercial expansion. The trade-off is shareholder dilution. The total number of ordinary shares and voting rights had increased to 161,058,493 by the date of the report, compared with 148,792,459 at 30 June.

Balance-sheet risk has nevertheless reduced. RentGuarantor repaid its directors' loan and all outstanding convertible loan notes during the period, leaving no loan or convertible loan note liability at 30 June.

AI investment offers potential, not certainty

Part of the newly raised capital is intended for automation and artificial intelligence. The board believes bespoke tools could potentially increase document-processing capacity to approximately 100,000 contracts per year by 2029 while improving efficiency.

That is an illustrative ambition rather than a disclosed financial forecast. The company has not provided the expected investment cost, the timing of any financial benefit or the level of demand required to use that capacity.

The planned RGG Tech Lab in Bristol is expected to support this strategy. For investors, the important future test will be whether technology allows contract volumes to rise without administrative expenses increasing at the same rate.

The positives and risks for shareholders

The main positives are clear:

• Revenue and contract volumes increased rapidly.
• The average contract price rose by 25%.
• Adjusted EBITDA turned positive.
• The operating loss moved close to break-even.
• Historic loan obligations were repaid.
• Post-period warrant exercises strengthened liquidity.

There are also points requiring caution:

• Operating cash flow remained negative.
• Reported net profit benefited from a £272,357 accounting revaluation.
• Equity issues and warrant exercises increased the share count.
• The interim figures are unaudited and were not reviewed by the auditors.
• No interim dividend was declared, with cash being retained for growth.
• Detailed full-year financial guidance was not disclosed.

What matters in the second half

Management said it expects continued strong financial performance during the rest of 2026 and into 2027, supported by the planned technology lab and what it described as historically strong third-quarter trading.

The board also said the results gave it confidence in meeting market expectations for the year, although the announcement did not disclose what those expectations are.

Investors should now watch contract growth, average pricing, administrative expenses and operating cash generation. RentGuarantor has shown that it can scale revenue and reach positive adjusted EBITDA. The next challenge is proving that this progress can develop into repeatable operating profits and positive cash flow without excessive reliance on further equity funding.

The full figures and accompanying notes are available in the original company announcement.