Moonpig Shares Tumble But Analyst Says CEO ‘Leaves Group in Strong Position’

Moonpig (LON: MOON) shares dropped more than 9% on Thursday as its results disappointed investors

While analysts noted that some metrics were slightly ahead of expectations, revenues came in at £350.1 million for the full year 2025, at the lower end of the company's compiled expectations. It also represented a slowdown in growth from the previous year.

The Moonpig share price decline came alongside the announcement that CEO Nickyl Raithatha will step down within 12 months after seven years at the company, including leading it through its February 2021 IPO.

Despite the market reaction, Edison analyst Dan Ridsdale believes Raithatha is leaving the business in “a strong financial and operational position.” 

In a research note, Ridsdale said the core Moonpig brand in the UK “continues to drive the group,” with rising total orders and improved gift attach rates helping to boost margins and cash flow.

Ridsdale said that for FY25, adjusted EBITDA reached £96.8 million, slightly ahead of consensus (£95.2 million), with adjusted PBT of £67.5 million and adjusted EPS of 15.0p. 

The board proposed a final dividend of 2.0p per share, taking the total to 3.0p for the year.

Looking ahead, the company guided for mid-single-digit EBITDA growth and an 8–12% rise in adjusted EPS for FY26. 

Moonpig’s net debt declined to £96 million, reducing leverage to 0.99x adjusted EBITDA, down from 1.31x a year earlier. 

Ridsdale noted the company’s “rapid deleveraging” and strong return on capital as clear signs of ongoing shareholder value creation.