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Introduction & Market Context
PensionBee Group PLC (LSE:PBEE) released its Q2 2025 results presentation on July 23, 2025, highlighting continued growth in assets under administration (AUA) and revenue, with its UK business achieving profitability while the company invests in US expansion. The pension management platform reported group AUA of £6.3 billion, representing significant growth from the £5.8 billion reported in Q1 2025.
The company continues to target substantial market opportunities in both the UK and US. According to the presentation, the UK defined contribution (DC) pension market stands at £1.5 trillion with 16 million active members, while the US market represents a massive $28 trillion opportunity with 64 million active members.
Quarterly Performance Highlights
PensionBee’s Q2 2025 results demonstrated continued momentum with group revenue increasing by 22% to £10 million compared to the same period last year. The company acquired 11,000 new invested customers during the quarter, bringing the total to 286,000, up from 211,000 in June 2023.
While the group reported an Adjusted EBITDA of £(0.9) million, the UK business achieved profitability of £0.3 million for the quarter and £3.2 million on a last twelve months (LTM) basis. This marks an important milestone in the company’s financial trajectory.
As shown in the following chart, PensionBee has demonstrated consistent growth in assets under administration from its founding to the current £6.3 billion:
The company’s Q2 2025 performance metrics reflect its dual-market strategy, with strong results in the UK while building foundations in the US:
UK Business Progress
PensionBee has increased its marketing investment in the UK, with spending rising from £5.8 million in the first half of 2024 to £7.6 million in the first half of 2025. This investment has yielded significant results in brand awareness, with prompted brand awareness reaching 70% and unprompted awareness at 25%, outperforming many competitors in the UK market.
The following chart illustrates PensionBee’s brand awareness compared to competitors, demonstrating the effectiveness of its marketing strategy:
The company has also made significant strides in operational efficiency through technology investments. Customer service metrics show an average live chat waiting time of just 14 seconds and phone line waiting time of 52 seconds, with 81% of email cases closed within 72 hours. These efficiencies have contributed to a high Trustpilot rating of 4.6 and an 18% year-over-year increase in the ratio of invested customers per staff member.
US Expansion Strategy
PensionBee’s US expansion strategy is showing early signs of traction. The company has launched content marketing initiatives including YouTube series "Money Mistakes" and "Retirement 101," which have garnered over 205,000 and 182,000 views respectively. Social media following has grown dramatically from just 200 followers in Q4 2024 to 36,200 by Q2 2025.
Early prompted brand awareness metrics in the US show PensionBee at 5%, compared to established players like Vanguard (77%), Fidelity (72%), and Charles Schwab (NYSE:SCHW) (66%). While still in the early stages, this represents progress in a highly competitive market.
The company’s US strategy includes a focus on Safe Harbor IRAs, with a pipeline of potential clients that could deliver approximately 20,000 new customer accounts. The presentation outlines the strategic approach to the US market:
Financial Outlook
PensionBee’s financial model demonstrates increasing operating leverage, with revenue growing at a significantly faster rate than costs. From the LTM period ending June 2023 to the LTM period ending June 2025, revenue grew at a CAGR of 37% (from £20 million to £38 million), while costs increased by only 3% (from £33 million to £35 million).
This divergence between revenue growth and cost growth is illustrated in the following chart:
The company’s revenue growth is supported by high customer retention rates exceeding 95%, creating a predictable and recurring revenue base:
PensionBee’s long-term financial guidance remains ambitious. The company is targeting revenue of over £100 million in the short-to-medium term with an Adjusted EBITDA margin of approximately 20%. Longer-term targets include revenue exceeding £250 million and an Adjusted EBITDA margin of around 50%.
The guidance framework is clearly outlined in the presentation:
The company maintains a strong balance sheet with approximately £34 million in cash, providing runway for continued investment in growth initiatives.
Strategic Initiatives
PensionBee’s technology platform continues to drive efficiency and personalized service. The presentation highlighted improvements to the user interface and customer experience, contributing to operational leverage.
The company’s scalability is evident in declining costs as a proportion of revenue. Money manager costs, technology platform costs, and marketing costs have all decreased relative to revenue over time, driving margin improvements:
Forward-Looking Statements
PensionBee expects to publish its interim results on August 14, 2025, followed by a Q3 2025 trading update on October 22, 2025. The company remains on track to achieve full-year UK Adjusted EBITDA profitability for 2025.
While the group-level profitability showed a slight decline from the breakeven position reported in Q1 2025 (with a 1% adjusted EBITDA margin) to Q2’s £(0.9) million, this reflects the company’s strategic investment in US expansion rather than deterioration in the core business. The UK business continues to improve its profitability metrics, demonstrating the scalability of the model.
With its current stock price of £170.50 (as of July 23, 2025) sitting comfortably within its 52-week range of £131-£191, PensionBee appears to be maintaining investor confidence as it balances UK profitability with US market investment.
Full presentation:
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