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Investing.com -- GB Group reported its financial results for the fiscal year 2025 on Tuesday, which aligned with the previously announced expectations, featuring a 3% organic growth and an adjusted EBIT of £67 million.
Despite meeting the reset forecasts, the results have been characterized as disappointing due to a deceleration in revenue growth, which declined from 4.5% in the first half of FY25 to approximately 1.5% in the second half.
The entire business experienced this slowdown, raising concerns over competitive pressures in the market.
The company’s net revenue retention (NRR), excluding Fraud NRR, decreased slightly to 101.1% from 102.6% in the first half of the year, indicating a reduced momentum in acquiring new logos during the latter half of FY25.
This has prompted questions regarding the company’s ability to capitalize on the substantial opportunities present in the digital identity sector and how it plans to bridge the gap between potential and performance.
Looking ahead to fiscal year 2026, GB Group has provided guidance that is in line with the current market expectations, which anticipate an organic growth rate of around 3%.
However, the firm mentioned that the majority of foreign exchange headwinds are already factored into the consensus, suggesting that there might be minor adjustments to revenue expectations.
The consensus revenue forecast stands at £282.7 million compared to GB Group’s estimate of £283.8 million.
The company’s performance and future outlook are critical as management faces the challenge of reassuring stakeholders about GB Group’s strategy to leverage the significant market opportunity for digital identity verification and services.
The results and guidance suggest that while the company is maintaining stability, it needs to address the underlying issues that have led to the recent slowdown in growth to meet the industry’s expectations and realize its full potential.
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