Trustpilot Upgrades Full Year Margin Guidance on Strong H1 Performance
Why we think this is very good
The trading update from Trustpilot Group plc indicates strong performance in the first half of 2025, with bookings, annual recurring revenue, and revenue all growing at double-digit rates. The company is upgrading its full year adjusted EBITDA margin guidance to 14%, demonstrating robust profitability. The business is generating solid cash flow and using it for growth investments and shareholder returns, which is positive. While the valuation appears quite high, the share price is towards the lower end of its 52-week range, suggesting the good news may not be fully reflected in the current stock price.
Key Points
- Bookings up 19% year-on-year, 17% at constant currency
- Annual recurring revenue up 29%, 21% at constant currency
- Revenue growth of 21% at constant currency
- Upgrading full year 2025 adjusted EBITDA margin guidance to 14%
- Strong cash generation, £67m net cash after £18m in share buybacks
Summary
Trustpilot Group plc reported a strong first half performance, with bookings up 19% year-on-year and revenue growth of 21% at constant currency. The company is upgrading its full year 2025 adjusted EBITDA margin guidance to 14%. Trustpilot also generated strong cash flow, ending the period with £67m in net cash after £18m in share buybacks. The company's valuation remains high, but the share price is towards the lower end of its 52-week range, suggesting the positive news may not be fully reflected in the current stock price.