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Future: Future's FY '25 Results: Steady Performance Amidst Challenges

Future's FY '25 revenue was GBP 739 million, down 6% year-on-year, with organic performance down 3%. Adjusted operating profit was GBP 205 million, reflecting a 28% margin, flat year-on-year. The actual EPS came out at '0.4667', missing estimates at '0.682'. The company generated good cash flows, with 86% of AOP and 96% underlying, and a strong balance sheet with leverage of 1.3x. A 5-fold increase to the ordinary dividend and a fifth share buyback program have been announced, with GBP 100 million returned to shareholders in the period.

FUTR.L

GBp 634

-0.7%

A-Score: 4.5/10

Publication date: December 4, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue and Profit Margin: Future's FY '25 revenue fell 6% to GBP 739 million, yet adjusted operating profit remained flat at GBP 205 million, maintaining a 28% margin.
  • Shareholder Returns: The company returned GBP 100 million to shareholders via a 5-fold dividend increase and a GBP 30 million share buyback program, with total buybacks reaching GBP 230 million.
  • Direct Digital Advertising Growth: Direct digital advertising now accounts for 68% of total advertising revenue, driven by higher yields compared to programmatic, despite AI-driven search trends impacting sessions.
  • New Revenue Streams: Initiatives like Future Optic (AI-based ads) and Rev Renewal (price comparison) generated GBP 100 million in new revenue, with bespoke ads sold to clients like Samsung.
  • Future Outlook: FY '26 guidance targets 2-4% revenue growth and 30% EBITDA margin, supported by GBP 20 million efficiency savings by FY '28 and 95% cash conversion goals.

Segmental Performance

The company's digital advertising revenue was impacted by AI-driven search trends, but only 16% of the business is directly tied to sessions. Direct digital advertising revenues increased to 68% of total advertising, with higher yields than programmatic. B2C revenue was down 2%, Go.Compare down 5%, and B2B down, but showing signs of improvement. Magazines performed strongly, flat year-on-year. E-commerce was a mixed bag, with a strong peak trading season, but a decline in unique page views in H2.

Growth Initiatives and Outlook

Future is developing new revenue streams to drive growth, focusing on direct audience relationships. The company expects to maintain a strong cash performance, with cash conversion around 95% going forward. For the FY '26 outlook, Future expects modest revenue growth in line with current consensus and an EBITDA margin of 30%. Analysts estimate next year's revenue growth at 1.0%. The company's growth guidance of 2-4% is driven by direct ads, e-commerce, B2B, and Go.Compare.

Valuation and Returns

Future's current valuation metrics are as follows: P/E Ratio at 8.23, P/B Ratio at 0.64, P/S Ratio at 0.78, EV/EBITDA at 4.14, and Dividend Yield at 0.54%. The company's ROIC is 6.98%, and ROE is 7.9%. The Net Debt / EBITDA ratio is 1.31. Given the current valuation, it is essential to assess whether the market has priced in the expected growth and returns.

Strategic Focus

Future's CEO highlights the company's data-first platform, which monetizes high audience engagement powered by technology and enabled by trusted specialist brands. The company has 175 brands, giving it scale to leverage its tech platform in multiple ways. Future's strategy focuses on growth, returning capital to shareholders, and investing in bolt-on acquisitions that align with its goals. The company is confident in its ability to deliver on its strategy and create long-term value for shareholders.

Future's A-Score