Rightmove plc

Rightmove said H1 2026 group revenue increased 7% versus H1 2025. Agency revenue increased 9% to GBP 164 million; New Homes revenue increased 2% to GBP 38 million; Commercial property revenue rose 13% to GBP 8.4 million; Mortgages revenue fell GBP 1.1 million to GBP 3.4 million; and Rental Services revenue increased 67%. Underlying EPS grew 6%, underlying operating costs increased GBP 10 million year-on-year, and the underlying operating profit margin was 69%. For full-year 2026, management lowered revenue guidance to 6% to 8% due to New Homes softness, expects development numbers to finish down 6% to 10%, reiterated 3% to 5% growth in full-year underlying operating profit, and expects at least 5% EPS growth. They also guided to SGA growth of 20% to 30% for 2026, expected H2 trading to be broadly consistent with H1, and set exceptionals at GBP 4 million to GBP 7 million for the proposed claim. Capital returns were stepped up: GBP 90 million of buybacks completed in the first 7 months of the year, an interim dividend of 4.17p was announced, and over GBP 330 million of additional buybacks are expected over the next 12 months, taking total shareholder distributions to over GBP 400 million.

Johan Svanstrom framed H1 as a period of strong execution in a tougher market backdrop, especially in New Homes. He emphasized record product rollout, rising AI capability, and the company’s long-term push to build an “agentic-powered property marketplace.” His tone was confident and strategic, stressing that Rightmove’s platform, data, and consumer reach give it room to keep innovating and monetizing over time.

Ruaridh Hook focused on the financial delivery: group revenue up 7%, Agency up 9% to GBP 164 million, New Homes up 2% to GBP 38 million, Commercial up 13% to GBP 8.4 million, Mortgages down GBP 1.1 million to GBP 3.4 million, and Rentals up 67%. He highlighted GBP 117 of ARPA growth to GBP 1,726, a 69% underlying operating profit margin, and GBP 10 million higher underlying operating costs driven mainly by people costs. On capital allocation, he said Rightmove has entered a GBP 200 million revolving credit facility, targeting about 0.5x leverage at full drawdown, while still prioritizing investment, selective M&A, dividends, and surplus cash returns. He also noted GBP 2.3 million of exceptionals in H1 tied to the proposed legal claim, with full-year guidance of GBP 4 million to GBP 7 million.

Analysts focused on New Homes weakness, the reasons for stronger SGA growth in H2, cost discipline versus revenue downgrades, AI token costs, exceptional legal costs, leverage, Commercial partner additions, and whether competition is changing. Management said New Homes conditions remain uncertain and are still declining in H2, but ARPA, packaging, and product adoption can be controlled and may rebound quickly when the market improves. On SGAs, they pointed to stronger Commercial chargeable products, Rental Services normalization, and better mortgage comparisons in H2; on AI costs, they said token expense is already budgeted and managed through caching, model choice, and operational controls. They also said M&A remains only a disciplined capital option, leverage will stay modest, and competition is broadly stable.