Good afternoon and welcome to PensionBee's Q4 2025 results announcement, covering trading for the period ending 31 December 2025. I'm Romi Savova, the CEO of PensionBee Group.

For those of you who are new to the PensionBee story, we are creating a global leader in the consumer retirement market. We exist to help our customers prepare for and enjoy a happy retirement.

We enable our customers to combine their old retirement accounts into a new online plan. We enable them to make contributions, to invest in line with their objectives, with money managed by the world's largest asset managers, and ultimately to withdraw and spend their retirement savings.

Our aspiration is to build a lifetime relationship with our customers, generating predictable and scalable revenue and profit for our company and for our shareholders. We are pleased with the results of the fourth quarter, which reflect strong execution in the UK and in the US.

As is expected for the medium term, the United Kingdom made up the bulk of assets and invested customers. The UK closed the quarter with assets under administration of £7.4 billion, representing 27% year-on-year growth, annual run rate revenue of over £50 million, representing 33% year-on-year growth, and approximately 305,000 invested customers.

Over the fourth quarter, we increased marketing expenditure to £2 million, compared to £1.2 million in the fourth quarter of 2024, positioning the business for continued ramp-up in marketing-led growth in 2026 and beyond. The investment drove UK customer growth of 37% over the quarter, with 8,000 new invested customers onboarded, underscoring the effectiveness of our growing marketing expenditure.

Overall, we onboarded approximately 40,000 customers in 2025, increasing the number of net new customers relative to 2024. We continued to invest in productivity, introducing new automations and efficiencies across our technology platform.

We generated a productivity improvement of 22% year-on-year, with each staff member supporting 1,621 invested customers. We are well positioned for 2026 with the launch of our new and refreshed Beehive experience, which will soon include the introduction of AI-powered chat in the app, further enhancing our long-term productivity.

The UK achieved adjusted EBITDA profitability of £3.4 million, with a 26% adjusted EBITDA margin for the quarter, underscoring our commitment to profitable growth in the UK. The UK also supported group profitability for the year overall.

Turning to the United States, over the fourth quarter of 2025, we have continued to focus on establishing a strong foundation for long-term growth. Our first advertising campaign concluded successfully, delivering a meaningful uplift in brand awareness in the markets where billboard advertising was deployed.

Our home location of New York saw prompted brand awareness of 12%, Seattle at 9%, and Chicago at 6%. This heightened visibility converted broader market interest into a healthy customer pipeline, which we can see continues to convert over time.

The company maintained its product-led growth strategy, enhancing the customer experience through the introduction of performance analytics, giving customers greater visibility of investment returns and improving transparency. PensionBee is now entering 2026 poised for growth, supported by strong early interest in our 1% match initiative, which is designed to accelerate the company's path to a billion dollars of AUA in the US, as well as a number of new distribution partnerships.

PensionBee has successfully secured its inaugural Safe Harbor IRA contracts, and initial clients are in the process of being onboarded, while additional clients are in the final stages of discussion. I would now like to hand over to Christoph Martin, PensionBee's CFO, who will cover the financial update.

Thank you very much, Romi. Hello and warm welcome to everyone.

I'm pleased to cover the financial section of the Q4 trading update. In Q4 2025, PensionBee had strong financial performance, with 27% year-on-year growth in our AUA to £7.4 billion, and 33% year-on-year growth in ARR to approximately £51 million.

This top-line growth, coupled with continuous cost discipline, led to an improvement in our adjusted EBITDA margin, with the group achieving profitability of £2 million at a 16% group EBITDA margin for the quarter, driven by UK adjusted EBITDA profitability of £3.4 million at 26% margin for the quarter. These continuous achievements are derived from the core value drivers of our business, which are first, predictable and recurring revenue, and second, business scalability.

Furthermore, they are testament to our ability to consistently and reliably execute against our public market guidance. The first value driver is PensionBee's predictable and recurring revenue, which is generated from a durable base of assets under administration, a function of the assets of existing and new customers.

In Q4, we experienced a 27% year-on-year AUA growth to £7.4 billion. The vast majority of the AUA base is derived from existing customers, the customers who remain with PensionBee for a long period of time and continue to build up their pension savings with us, resulting in value generation for decades to come.

Our average customer is in their early 40s, and they build up their pension savings with PensionBee, which means that cohorts on an underlying value basis, so that is before any effect on capital markets, are resilient over time. AUA is derived from new customers acquired through our proven cost-disciplined approach to new customer acquisition.

Over Q4 2025, we onboarded circa 8,000 new invested customers onto our technology platform, representing a 37% year-on-year growth. Over 2025, customers joining were slightly younger than in 2024, aged approximately 39.7, and the year before in 2024, it was 40.6, approximately one year younger, in line with our marketing strategy for 2025.

The younger customer cohorts acquired resulted in a slightly lower average balance of new customers this year compared to the previous year. As a result, the compounding AUA base is subsequently converted into our revenue growth, owing to our resilient gross revenue margin.

In Q4 2025, we saw a revenue margin of circa 65 basis points, which enabled us to convert the 27% year-on-year AUA growth into quarterly revenue growth of 34% and annual run rate revenue of 33%. In conclusion, thanks to our compounding AUA base and resilient revenue margin, we have generated predictable and recurring revenue, which represents PensionBee's first value driver.

The second value driver is PensionBee's business scalability, due to the controllable nature of the cost base. Our cost base has continued to decline as a proportion of revenue.

This scalability dynamics of predictable and recurring top-line growth, coupled with cost discipline, led to an improvement in operating margin on a 2025 basis, adjusted EBITDA margin improved to 11%, up from 7% in 2024 for the United Kingdom. Furthermore, the operating margin pre-marketing, this is a measure of scalability, for the UK improved to 39%, up by 6 percentage points from 33% last year, reflecting the inherent strong scalability and margin potential of the business.

Reflecting on our long-term track record, PensionBee has delivered a revenue growth since our IPO of compound annual growth rate of 48% to December 25 and strong margin expansion in the UK, with adjusted EBITDA margin improving from negative 166% pre-IPO to positive 11% today. Furthermore, operating margin pre-marketing improved from negative 35% pre-IPO to positive 39% over 2025 in the UK.

This underscores the strong delivery against our growth and business scalability objectives. With respect to our guidance framework for PensionBee as a group, we have outlined the short, medium, and long-term targets.

By the end of 2029, we expect the group revenue to be above 100 million pounds and adjusted EBITDA margin of circa 20% by the year end 2029, with the UK considerably contributing to those targets. By the year end 2034, we expect the group to generate above a quarter of a billion pounds in revenue and adjusted EBITDA margin of circa 50%.

Our circa 33 million in cash balance puts PensionBee into a strong position to further scale the UK business as well as invest in the tremendous U.S. market opportunity, continuing to execute on our long-term strategy and delivering our public market guidance.

I would now like to hand back to Romi for concluding remarks.

Thank you very much, Christoph. We are very pleased to be concluding the fourth quarter on a high note and are very excited about the 2026 plans ahead, both for the United Kingdom and also for the United States.

We'd now like to open up to questions.

Christoph, one for you?

The take rates, can you maybe ask the question of how this will be defined? Is this new invested customer number?

Maybe someone can clarify.

term? Happy to take the second one.

The way of how we think about marketing and customer acquisition is basically to drive growth, and so CAC is a very important measure for that that we look at and where we have a self-imposed threshold of 250 pounds, which we are at the end of 2025. Another way that we are also looking at is what is the return on that CAC, and so a way of, again, thinking about we spend marketing to drive growth, and so in other words, is we spend marketing and we get gross inflows.

If you're looking at the gross inflows and divide them by marketing, you get basically what is the gross inflows that you get for each pound of marketing spent, what you will find actually that the business model is very, very predictable, because the gross inflows per marketing pound spent for 2025 was 114, and the average age of the customer that we acquired was 39.7. If you look actually two years back in 2023, the average age of the customer we acquired was 39 and a half.

Roughly the same age, and the gross inflows per marketing spend was 120. That means actually, and then last year where the average age was 40 and a half, the gross inflows was 145, and the years before where it was lower, the gross inflows per marketing spend was lower.

That tells us that actually if we are very mindful of what is the demographic and average age of the customer cohort that we acquire, it gives us a really reliable and predictable indicator of what the gross inflows return would be as a proportion of marketing spend. That's the second way that we're looking at, and the thing that tells us a lot about the predictability of the nature of the business.

Great question on the U.S. The U.S.

is, of course, still in the early phases of its development, and I would point you towards the medium-term guidance that we have for the group overall. The medium-term guidance, of course, sees us achieving a 100 million pound revenue marker with a 20% EBITDA margin.

I think, as you can see from the numbers that we've reported today, simply kind of doing more of what we have currently been doing would very much kind of be in line with the achievement of that guidance. When it comes to the U.S., we will continue to focus on the kind of key development milestones that we see for the business over the 2026 time frame.

That includes establishing the direct-to-consumer repeatable marketing funnel, which we are now starting to see coming through on the back of the advertising that we did last year. Also with the B2B contracts on the Safe Harbor IRA side, where we have signed the first ones and are in the process of onboarding.

You can expect to see quite a lot of progress on the U.S. in terms of initial milestones being reported over 2026.

I would, as I have done in the past, contextualize the U.S. business with our goal of growing it more quickly than we grew the UK business at a similar stage of its development.

Some relevant milestones there. It took us about a year and a half to acquire the first UK customer.

Within two years, we had about 20 million pounds of AUA. Within three years, we had about 100 million pounds of AUA.

I think that you can see us moving the U.S. business much faster against those initial milestones.

I think that that's what we will be reporting against as we scale it up to a meaningful level.

Can I maybe add one point? I think there was also a question on the cost, and I think the key point to highlight there is that we approached the U.S.

in a really, let's say, capital disciplined and de-risk approach, generating a lot of synergies, number one, from the technology platform that we have developed in the UK and bringing it over to the U.S. As well as having the commercial relationship with our local partner who refunds the marketing investment.

Then the third one is the 1% match that we're rolling out. You need to be mindful is that that 1% match, yes, it comes from our balance sheet, but what you actually get is a minimum return from it, because the requirement for the 1% match is a 5% hold.

That means that is already paying back your acquisition costs as well as generating some returns on it. To quantify this a little bit, the U.S.

for the full year was an investment of 4.5 million pounds. There was some transfer pricing in those numbers, if you take that out and look at the pure cash number, it was about 3 million pounds.

That means actually we spent a low single digit for expansion to tap into the world's largest pension market. That's number one.

Then included in the number as well is a 3.8 million investment in marketing, but again this got refunded thanks to the relationship that we have with our partner. I think one thing to be very mindful of is how we approach the U.S.

expansion in a very capital-disciplined way, and therefore also derisk that expansion by being very mindful, generating synergies, having a very interesting commercial agreement, and then the structure around the 1% match.

I'm happy to take this one. The levers to get to our 20% target, it is really almost embedded in the business itself, because PensionBee is of course a growth story.

We will continue growing in the U.K. as strongly as we can.

We have publicly said we actually reinvest our profit back into the business to overcharge growth and drive growth there. You actually see very clearly when you're looking at the scalability metrics, and one proxy you can look at is what is the profitability as a percentage of revenue, and actually see how this tracks over time, because this gives an indication of how strong the operating leverage is in the business.

I made a reference around profitability before marketing, because that is really looking at the underlying platform itself, irrespective of how much we actually spend on growth. If you're looking at that adjusted EBITDAR, pre-marketing margin, basically pre-IPO it was negative 35%, and this year, 2025, it is 39%.

That tells you that as we grow the top line, given the high retention rate of our cohorts and the compounded nature of the asset base and conversion to revenue, the top line is highly predictable and recurring in nature, and then at the same time, the cost base is growing at a much slower clip compared to the top line, and that generates this operating leverage. This is probably the biggest lever, is continuing investing in growth, continuing cost discipline, and doing more of the same, really, of what we have already achieved since IPO consistently year after year, to just driving that operating leverage and that scalability further.

It's a great question in terms of marketing spend. I think one of the points that is highlighted through the question is very much how marketing spend and new customer growth are correlated, and that really points to the predictability of the revenue model and how we drive increasing customer growth, increasing revenue growth in a very, very big market.

In terms of Q4 in particular, I would say that Q4 is quite a special quarter for a number of reasons. Q4 last year was of course kind of the time where we were eagerly anticipating a budget from the UK government.

It's also the run-up to Christmas, and so advertising decisions can be made around some of the bigger events, and normally in Q4 you would seasonally see us spending a little bit less than we do in, say, Q1 and Q2 because of the timing and the nature around the sentiment of personal finances in particular. Certainly what you can see in Q4 at the end of last year compared to the year before that is that we continued to increase the level of marketing spend on a relative historical basis, and we expect that to of course be positive as we move into 2026, because ultimately we are investing in current customer growth, but also in future customer growth when we spend on marketing.

We're pleased to be able to continue that momentum of increasing the marketing budget at the end of last year, but also into 2026.

Very happy to take this one. If you take a step back and you're looking at our medium-term guidance, the 100 million pounds by 2029, and you back out or you apply also our average pot size guidance, which was 20 to 25,000 pounds per customer, you get to a number of around 600,000 by the end of 2029.

I think the way of how we get to where we are today, to that point, is by increasing that net adds every year a little bit more, roughly by 10,000. I think this year for 2026, we would probably expect the net adds to be around 50 to 55,000.

Let's put it this way. Then also you need to be mindful that's on the back of, again, discipline in the acquisition cost per customer, as well as an increase in the marketing spend, because as we just alluded to earlier, the more we scale, the more underlying profitability we generate and that we reinvest back into the business.

I think the expectation for this year is probably to increase the marketing budget, as we have said in the past, to around mid-double-digit teens, and therefore drive the customer number. Then on the net flows, I think the way of how you can think about in certain building blocks is looking at gross inflows, gross outflows, and markets.

The market assessment I would kindly leave up to the analyst, but on the other two, I think we can give a little bit more color around them. On the outflows, what you actually see is that the model is quite predictable, because if you're looking at outflows as a percentage of beginning of period balance of the AUA base, you see that it is around 10%, 2025, but it was also around 10% the prior year.

Then when you're looking at from 2019 to 2024, I think the average was always about 10%. This 10% is a very consistent, let's say, number.

Then it becomes how much gross inflows are we driving? There you have the marketing number.

We target for 2026 probably a slightly older demographic compared to 2025. That means that the gross inflow per each marketing pound we spend we expect to be larger than it was in 2025.

If you bring those building blocks together, that should give you a very informed answer around your net flows.

Maybe I can quickly take the definition point. Please be reminded that the value retention is about 96%, to be very precise.

The attrition is about 4%. Then if you apply the 4% to the average IC number over the year and apply this to the 4%, you get to around, let's say very low double digits, around the 10, 11,000 mark, rather than the, I think, 13,000 that you asked.

It's a little bit lower because the retention is higher than 95%, if you actually look at the actual number. Then in terms of what we are learning from the customers that do leave, as we are running various qualitative and quantitative analysis, and I think what we continuously see is that there is various idiosyncratic reasons of why a customer leaving.

Some want to consolidate with the workplace pension, some are happy to pay premium price to go to an advisor, some they want to have a very specific asset exposure. There tends to be various idiosyncratic reasons for us, but I think the point is really when you're looking at the retention rate over the long run, it is quite resilient, it is quite stable.

We reported greater than 95% retention on a value and volume basis since inception. I think we're looking at those number and it tells us that actually overall the vast majority of the customers are actually quite happy.

Happy to take this one. I think we are really excited about 2026.

As we secured our first B2B client. I think we're very excited about onboarding our first clients, and I think that will help us getting the snowball rolling and acquiring more clients in that new distribution channel.

Then also on the B2C side, the 1% match is something that we place a little bit more prominently in the advertisement. I think we're very excited about that as well.

I think once we see that ramp-up coming and we see the materiality of the numbers to come through, then we would place a little bit closer look at them and would also embed them a little bit more closely in the reporting.

Very happy to start with some of these questions. On the U.S., we'd like to add some color on kind of the Safe Harbor IRA contracts that we've been signing.

These are the initial employers that we're onboarding. We are starting with some of the smaller and medium-sized employers, and so the level of flow will, of course, mirror the size of the employer that we begin with.

That being said, relative to the starting point, you will see a meaningful change in net flows and AUA in the U.S., and we'll have some more details for you on that at the end of the first quarter. Then on the UK question, it looks like the average new customer balance was a bit higher quarter on quarter.

Was that driven by anything in particular? Customer balance in general is pretty consistently driven by the average age of the cohorts that we onboard, which in and of itself can then be driven by specific marketing channels.

Q4 tends to be a very SEO and organic-heavy quarter. It's usually a quarter where we spend less on paid acquisition channels, and therefore you usually do see a slightly older customer coming through.

The changes in customer balance can generally be explained by the age of the customer cohorts.

I think it's really important to keep the UK numbers in context, and I would point you to the medium-term guidance that we have given for the group. If you look at where we stand on a revenue basis for the end of 2025, you can impute the growth rate required to reach 100 million of revenue by the end of 2029.

You would see that we have considerably been beating that on a historical basis. I would focus on the medium-term guidance, and we'll definitely let you know when it's a good time to start extrapolating more of the U.S.

numbers. In the meantime, we'll be reporting on the significant milestones that it takes to build the U.S.

business for the long term, which of course includes the completion of a lot of the product work that we did over the course of last year, but also the signing of the Safe Harbor IRA contracts that we just announced.