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Pluxee NV (EURONEXT:PLX) reported continued strong performance in its Q3 Fiscal 2025 results presentation on July 3, 2025, with double-digit organic revenue growth and reaffirmed financial objectives for the full year. The employee benefits provider saw its share price rise 2.41% to €19.15 following the announcement.
Quarterly Performance Highlights
Pluxee delivered solid financial results in the third quarter, with total revenues reaching €310 million, representing 11.1% organic growth and 4.3% reported growth compared to the same period last year. For the first nine months of fiscal 2025, total revenues amounted to €945 million, up 10.9% organically and 6.2% on a reported basis.
"Solid delivery over the first 9 months and on track to meet full-year objectives," the company stated in its presentation, highlighting that revenue growth was in line with expectations and the business trajectory remained positive.
As shown in the following chart detailing Q3 revenue performance:
The company’s performance was driven by robust operating revenue, which reached €270 million in Q3 (+11.1% organic growth), while float revenue contributed €39 million. For the first nine months, operating revenues were €822 million and float revenues were €123 million.
The detailed breakdown of total revenues shows consistent growth across segments:
Geographic Growth Distribution
Pluxee’s growth strategy continues to yield results across different regions, with particularly strong performance in Latin America and Rest of World markets. Latin America reported 13.6% organic growth in Q3 and 12.8% for the first nine months, while Rest of World markets achieved 11.0% and 15.9% organic growth for the same periods, respectively.
The company also noted a rebound in Continental Europe in Q3 as base effects faded, though this region continues to face more challenging macroeconomic conditions compared to other markets.
The following geographic breakdown illustrates these regional differences:
Business Volume and Client Retention
Employee benefits remained the primary driver of Pluxee’s business volume growth. For the first nine months of fiscal 2025, employee benefits business volume reached €14.2 billion, up from €13.8 billion in the same period of fiscal 2024, despite currency headwinds of €1.2 billion.
The following waterfall chart illustrates the various factors impacting business volume growth:
Pluxee’s client-centric approach continues to yield positive results, with a net retention rate consistently maintained above 101%. The company reported a 20 basis point improvement in existing client retention year-on-year, along with steady momentum in face value increases.
New client acquisition has been particularly strong, with €1.1 billion in annualized business volume issued from new clients in the first nine months of fiscal 2025. This performance puts the company on track to meet its medium-term business target of over €1.3 billion per fiscal year for 2024 to 2026.
Strategic Initiatives and Partnerships
Pluxee highlighted several strategic initiatives that contributed to its growth during the quarter. The company mentioned further advancement in its M&A strategy execution, including the acquisition of MyBenefits, though specific details were limited in the presentation.
The partnership with Santander (BME:SAN) in Brazil has shown strong results, adding over 250,000 end-users since closing. The company reported that the volume migration has been fully completed and noted success in the joint sales approach with key accounts.
Additionally, Pluxee’s client-centric sales strategy is gaining traction in India, resulting in 35,000 new end-users in Q3 Fiscal 2025.
Float Revenue Performance
Float revenue, which represents income generated from funds held before they are paid to merchants, continued its upward trend but is showing signs of leveling off as interest rates stabilize across markets. For Q3, float revenue grew 10.8% organically to €39 million, while the nine-month figure reached €123 million, representing 14.3% organic growth.
The following chart shows the evolution of float revenue:
"Float revenue is growing at a slightly stronger path than expected, mainly driven by growing float base and still high interest rates in certain countries," the company noted in its presentation.
Forward-Looking Statements
Pluxee reconfirmed its financial objectives for both fiscal 2025 and 2026, maintaining confidence in its growth trajectory despite various macroeconomic challenges in some markets.
The company’s targets include:
For fiscal 2025, Pluxee expects low double-digit organic growth, +150 basis points margin expansion for Recurring EBITDA, and above 75% recurring cash conversion rate on average over fiscal 2024-2026. For fiscal 2026, the company targets an additional +75 basis points margin expansion for Recurring EBITDA.
These targets align with the company’s performance in the first half of fiscal 2025, when it reported a 10.8% organic increase in revenue to €635 million and a significant 55.5% year-over-year rise in net profit to €106 million, as reported in its H1 earnings.
Market Context
Pluxee’s Q3 performance continues the positive momentum seen in its H1 results. The company’s stock has been trading between a 52-week range of €15.21 and €27.80, with the current price of €19.15 suggesting potential upside if the company continues to deliver on its financial objectives.
The employee benefits sector remains resilient despite macroeconomic uncertainties in some regions, with Pluxee’s geographic diversification helping to mitigate regional challenges. The company’s focus on digital tools and strategic partnerships positions it well to capitalize on the growing demand for employee benefits and engagement solutions across its 29 operating countries.
Full presentation:
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