YouGov Shares Dip: FY25 Stable as Margins Improve

YouGov shares (LON:YOU) are 1.16% lower this morning, as the company announced its results for the year ended 31 July 2025, showcasing a stable performance and margin improvement in line with market expectations. The international research and data analytics group is focusing on clear executional priorities to deliver its SP3 strategy and achieve sustainable growth.

Headline Numbers:

Revenue: £388.9m vs £335.3m, a 16% increase year-over-year (YoY). Underlying revenue growth was 1%.

Adjusted Operating Profit: £60.7m vs £49.6m, up 22% YoY. Underlying growth was 26%.

Adjusted Operating Profit Margin: 16% vs 15%, a 100bps improvement.

Adjusted Earnings per Share: 31.7p vs 29.4p, an 8% increase.

The company's robust balance sheet remains a highlight, with a net debt of £144.0m, a slight decrease from £148.2m in the previous year. Operating cash generation saw a 17% increase, reaching £63.3m. YouGov will distribute a dividend of 9.25p per share, a 3% increase.

The data products division has shown signs of recovery, driven by product improvements and a renewed sales focus. This has led to normalized renewal rates and multiple client wins, with strategic hires in data science aimed at further enhancing product value.

YouGov Shopper, formerly CPS, has seen substantial progress in growth initiatives and integration. This includes the launch of passive, receipt-based panels in the Nordics and the development of a new marketing activation product covering key European markets.

The research division achieved modest growth, with strong performance in the US market offsetting weakness in the EMEA region. The company has realized 70% of its £20 million annualised cost savings as part of its optimization plan.

Driver Breakdown:

Cost Optimization: Realization of £20 million annualised cost savings, creating headroom for strategic reinvestment.

Data Products Recovery: Improved product offerings and sales focus driving growth.

YouGov Shopper Integration: Successful integration and expansion into new markets.

If you AskTraders: YouGov's focus on cost discipline and strategic execution appears to be paying off, with improved margins and a return to growth in key areas. Markets may in time react positively to the improved profitability and future growth plans, potentially leading to increased investor confidence, but for now, the shares have pulled back along with broader markets this morning.

CEO Stephan Shakespeare said: “YouGov has delivered a stable performance with improved margins through the strength of our teams and our resilient business model.” He added, “Our focus on execution and cost discipline has rebuilt momentum and the strategic steps we've implemented demonstrate our commitment to returning to sustainable, profitable growth.”