Ten Lifestyle Group’s FY2025 trading update: revenue growth, EBITDA beat and stronger balance sheet
Ten Lifestyle Group has delivered a tidy set of full-year numbers for the 12 months to 31 August 2025. Net Revenue is set to come in at c.£65.7 million, up 5% year on year (7% at constant currency), with Adjusted EBITDA up £1.8 million to c.£14.6 million, ahead of market expectations. Active Members rose 7% to 375,000, with momentum improving towards the end of the second half. The balance sheet is cleaner, loan notes are gone, and a new revolving credit facility is in place to smooth working capital.
There’s also a steady drumbeat of commercial progress: two new Medium contracts in AMEA, several strategically important Small wins, and a multi-year renewal of a Large European contract with an uplift in fees for a more digitally-led service. The one blemish is a Medium contract in the Americas expected to transition away by the end of H1 2026.
Key figures from Ten Lifestyle Group’s FY2025 update
| Metric | FY 2025 (c.) | FY 2024 | Change |
|---|---|---|---|
| Net Revenue | £65.7m | £62.9m | +5% |
| Net Revenue (constant currency) | £67.1m | Not disclosed | +7% vs FY 2024 (reported) |
| Adjusted EBITDA | £14.6m | £12.8m | +£1.8m |
| Adjusted EBITDA (constant currency) | £13.2m | Not disclosed | +£0.4m |
| Adjusted EBITDA margin | 22.2% | 20.3% | +1.9pp |
| Active Members | 375k | 349k | +7% |
| Cash and cash equivalents | £10.6m | £9.3m | +£1.3m |
| Net cash | £9.8m | £3.9m | +£5.9m |
Definitions: Net Revenue includes the direct cost of sales relating to certain member transactions. Adjusted EBITDA is operating profit before interest, tax, amortisation, depreciation, share-based payments and exceptional items. Active Members are eligible users who have used the platform in the past 12 months. Constant currency strips out FX to show underlying performance.
Revenue and member growth: steady progress, late-H2 acceleration
Top-line growth of 5% (7% at constant currency) is solid rather than spectacular, but it’s paired with a 7% rise in Active Members to 375,000 and an encouraging note that the most significant growth arrived towards the end of H2. That matters: late-period momentum often carries into the new year, and a larger active base should support higher platform engagement and supplier revenue.
Being broadly in line with market expectations on revenue is fine. The more interesting story is the mix shift towards digital, which is starting to show up in profitability.
Profitability: EBITDA ahead of expectations and margins up to 22.2%
Adjusted EBITDA of c.£14.6 million is up £1.8 million and ahead of market expectations. The margin steps up to 22.2% from 20.3%, signalling operational leverage from the AI-driven, digital-first approach. On a constant currency basis, EBITDA is c.£13.2 million, up £0.4 million, so FX helped the reported figure – but the operational improvement is still clear.
In plain English: Ten is getting more efficient at serving members, and the platform is scaling. That’s what you want to see in a platform business tied to multi-year corporate contracts.
Contracts: new wins, European renewal uplift, and one contract exiting
Commercially, Ten secured two Medium contracts in AMEA and several strategically important Small contracts. It also renewed a Large European contract on a multi-year basis with an uplift in fees for a digitally-led service – a healthy validation of the product roadmap.
For context, Ten classifies contracts by annual client fees (excluding supplier revenue): Small below £0.25m, Medium £0.25m to £2m, Large £2m to £5m, and Extra Large over £5m. The spread of new wins and the uplifted Large renewal should underpin revenue visibility.
The cautionary note: a Medium contract in the Americas is expected to transition away by the end of H1 2026. It is not a near-term hit, but it does create a future headwind that new wins will need to cover.
Balance sheet: loan notes repaid and a new £5.0m revolving credit facility
Ten finished the year with c.£10.6 million of cash and c.£9.8 million of net cash, a sizeable improvement from £3.9 million a year ago. The Group repaid all loan notes – £3.1 million during the year and the remaining £0.8 million post period-end.
Post-period, the company signed a 3-year £5.0 million revolving credit facility (RCF) with NatWest for short-term working capital. An RCF is a flexible line you can draw down and repay as needed. Management says it provides more flexibility at a lower cost versus the loan notes and invoice financing it replaces. That should mean lower finance costs and smoother cash flow through seasonal peaks.
Technology: Digital Dining rollout and Guardian AI quality assurance
Ten is keeping the foot down on AI and platform investments. In July it launched Ten Digital Dining, an integrated dining service, and Guardian, an AI quality assurance tool – both now rolling out across global client programmes. The aim is better service quality and greater scalability.
The CEO highlights strong adoption amongst new active members towards the end of the year. If Digital Dining improves conversion, booking efficiency and supplier economics, it should support both growth and margins.
Why this update matters for Ten Lifestyle Group investors
- EBITDA beat with margin up to 22.2% suggests the digital model is scaling efficiently.
- Active Members up 7% and late-H2 momentum bode well for FY 2026 engagement.
- Contract activity is positive: new Medium and Small wins plus a Large renewal with fee uplift.
- Balance sheet cleaner: loan notes repaid and a lower-cost, flexible RCF in place.
- FX provided a tailwind to reported EBITDA; constant currency progress is smaller but still positive.
- One Medium contract is exiting by the end of H1 2026 – a manageable headwind to monitor.
Risks and watch-outs
- Revenue growth is steady rather than rapid; valuation will likely hinge on continued margin expansion.
- Client concentration isn’t disclosed, but the loss of any Large or Extra Large contract would be impactful.
- Currency swings can amplify or mute reported progress; constant currency remains the cleaner lens.
What to watch next
- Final audited results detail, including any commentary on FY 2026 outlook and pipeline conversion.
- Run-rate impact from Digital Dining and Guardian – any data points on efficiency or member adoption.
- Further contract wins or renewals to offset the flagged Americas Medium contract transition by H1 2026.
- Margin trajectory – can 22%+ be sustained or improved as digital penetration rises?
- Cash generation and RCF usage through seasonal working capital swings.
Josh’s take: a neatly executed year with credible levers for more
This reads like a company quietly doing the basics well: growing the member base, winning and renewing contracts on better digital terms, and converting that into higher margins and stronger cash. The EBITDA beat is the headline, but the cleaner capital structure and new RCF give Ten more flexibility and fewer costs in the background.
The future loss of a Medium Americas contract is a known speed bump, not a show-stopper. If Digital Dining scales as intended and the pipeline converts, Ten has a decent shot at maintaining margin momentum while keeping revenue ticking up. Solid update.
