Pendragon PLC

FY '25 revenue was GBP 40.5 million, up approximately 30% year over year. Gross profit was GBP 34.7 million, up 23%, and gross margin was 85.7%, which management said fell as expected because Seez margins are slightly lower than legacy Pinewood. Underlying EBITDA was GBP 16.4 million, up 17.1% versus FY '24. Recurring revenue was 83.2%, and net customer churn was 2.5%. Cash from operations was GBP 6.5 million, end-of-December cash was GBP 34.1 million, and the RCF facility of GBP 10 million remains undrawn. Guidance was unchanged for FY '28 at underlying EBITDA of GBP 58 million to GBP 62 million, with roughly GBP 50 million covered by existing customers and signed contracts. For FY '26, management said underlying EBITDA should be in line with analyst consensus of GBP 21.3 million.

Bill Berman emphasized that Pinewood’s edge comes from being 100% cloud-based on one code base, having low churn, and offering deeply embedded AI rather than a layered chatbot. He said the Seez acquisition materially improves the AI proposition and upsell capability, while the Lithia buyout removes a competitive overhang and opens the door to broader North American growth. His tone was confident and expansionary, with repeated emphasis on OEM integrations, market share opportunities, and long customer tenure.

Ollie Mann walked through the financial bridge: revenue of GBP 40.5 million, gross profit of GBP 34.7 million, gross margin of 85.7%, and underlying EBITDA of GBP 16.4 million. He highlighted GBP 6.5 million of cash from operations, GBP 11.4 million of capex including GBP 10.5 million of capitalized development spend, GBP 13.5 million net spend on acquisitions and reseller buyouts, and GBP 34.1 million of year-end cash after the March equity raise of GBP 34.1 million. He also noted non-underlying items including GBP 4.6 million of acquisition costs, GBP 4.2 million of U.S. subsidiary costs, GBP 3.6 million of share-based payments, and GBP 4 million of amortization. On outlook, he said FY '28 EBITDA guidance is unchanged at GBP 58 million to GBP 62 million, FY '26 should be around the GBP 21.3 million analyst consensus, working capital should become a tailwind in FY '27 and FY '28, and FY '28 cash generation should be roughly GBP 45 million to GBP 50 million.

Analysts focused on North America execution, capex needs, implementation capacity, pricing models, and whether AI changes the competitive landscape. Management said North America integration is large but manageable, with roughly 1,000 OEM integrations potentially needed across the region and 90% plus of North American volumes expected to be fully integrated by year-end 2026. On capex, Bill said spend should stay broadly where it is aside from new markets and new products, while Ollie said there will be a slight step-up in FY '26 and FY '27 before cash flow improves. They also said AI is already being used to shorten implementation work from weeks to minutes, which should help scaling, and they would not comment on other companies' lawsuits, though they argued dealers own their data and open data access does not make migrations easy.