PensionBee Group plc

Good afternoon, ladies and gentlemen, and welcome to the PensionBee Group Q3 2025 results for the quarter-ending 30th September 2025 presentation. Throughout today's record meeting, attendees will be in listening-only mode. Questions are encouraged. They can be submitted either verbally by just typing your name in the Q&A tab, and we'll come to you and unmute your microphone, or simply just type in your question just using the Q&A tab at the bottom of the screen, press send, and then we'll pose that question to the company on your behalf. The company may not be in a position to answer every question received during the meeting itself, but of course, we will provide those companies for responses post today's meeting if appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand over to the team from PensionBee, Romy, Christophe. Good afternoon.

Thank you very much. Good afternoon and welcome to PensionBee's third quarter 2025 results announcement covering trading for the period ending 30 September 2025. I'm Romy 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 third quarter, which reflects 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 billion, representing 27% year-on-year growth, annual run rate revenue of £46 million, representing 35% year-on-year growth, and approximately 300,000 invested customers. Over the third quarter, we increased marketing expenditure by 22% compared to the third quarter of 2024, ensuring effective deployment by optimizing our performance channels while also investing in our brand awareness through a UK-wide billboard campaign on roadside digital sites. This investment drove UK customer growth of 39% over the quarter, with 11,000 new invested customers onboarded compared to 8,000 in the third quarter of 2024, underscoring the effectiveness of our growing marketing expenditure. We continue to invest in productivity, introducing new automations and efficiencies across our technology platform. We generated a productivity improvement of 19% year-on-year, with each staff member supporting 1,555 invested customers. We also made strides with our AI initiatives, further refining our internal bot, Beatrix, who is currently supporting our operations team, with a view to enabling Beatrix to eventually serve our customers. The UK achieved adjusted EBITDA profitability of £2.4 million for the quarter, underscoring our commitment to profitable growth in the UK. Turning to the United States, over the third quarter of 2025, we have continued to focus on establishing a strong foundation for long-term growth. In a marketing highlight for the company, we launched our first brand campaign in 12 metropolitan areas, including New York, Chicago, and Seattle. The brand campaign consists of television, billboard, and radio advertising featuring our first US customers. Simultaneously, we have continued to expand our product functionality, and we now have transfer protocols to cover a majority of 401 and IRA transfer types. As a result, we are now exiting the live testing period with confidence that our protocols can generate transfers following the successful completion of $2 million worth of transfers and contributions. During the live testing, we also attracted account sizes multiple times above our target of $50,000, indicating the potential for rapid asset accumulation as brand awareness grows. With our transfer infrastructure now in place and growing brand recognition, we are preparing to enter the next phase of growth through a 1% match on all completed 401k rollovers, IRA transfers, and contributions. This initiative will launch very soon and is expected to accelerate our path to $1 billion of assets under administration. We also continue to invest in our Safe Harbor IRA offering with a number of employers now in the final discussion stage and ongoing consultant-led requests for proposal. We're pleased to share some new market research with you today, which was conducted with the Employee Benefits Research Institute. The findings indicate that 1.7 million 401k accounts are automatically rolled over into Safe Harbor IRAs annually, representing over $4.6 billion in potential annual inflows. Our product offering, including our low fees, leave us well positioned to capture a growing market share over the coming years. I would now like to hand over to Christoph Martin, PensionBee's CFO, who will cover the financial update.

Thank you very much, Romy. Hello and a warm welcome to everyone. I am pleased to cover the financial section of the quarterly trading update. In Q3 2025, PensionBee had strong financial performance with 27% year-on-year growth in our AOA to £7 billion and 35% year-on-year growth in ARR to £46 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 £1.3 billion at 12% group EBITDA margin for the quarter, driven by the UK adjusted EBITDA profitability of £2.4 million 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 and administration, a function of the assets of existing and new customers. In Q3, we experienced a 27% year-on-year asset growth to £7 billion. The vast majority of the AOA base is derived from existing customers, 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 cohort on an underlying value basis, i.e. before an impact on capital markets, are resilient over time. AOA is also derived from new customers acquired through our proven, cost-disciplined approach to new customer acquisition. Over Q3 2025, we onboarded circa 11,000 new invested customers onto our technology platform, representing 41% year-on-year growth. Over the quarter, customers joining were slightly younger than in Q3 2024, aged approximately 39, in line with our marketing strategy for 2025. We continue to observe strong underlying KPIs on retention rates and net flows, underscoring PensionBee's strengths and resilience. As a result, the compounding AOA base is subsequently converted into our revenue growth owing to the resilient gross revenue margin. In Q3 2025, we saw a revenue margin of 64 basis points unchanged year-on-year which enabled us to convert the 27% of year-on-year asset growth into quarterly revenue growth of 32% and annual run-rate revenue growth of 35%. In conclusion, thanks to our compounding AOA base and resilient revenue margin, we have generated predictable and recurring revenue, which is again 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. These scalability dynamics, i.e., predictable and recurring top-line growth, coupled with cost discipline, led to an improvement in operating margin. On the last 12 months to September 25 basis, the adjusted EBITDA margin improved to 10%, up from 2% last year for the U.K., Furthermore, the operating margin pre-marketing for the UK improved to 38%, up from 30% last year, reflecting the inherent strong scalability and margin potential of the business. Reflecting on our long-term track record, PensionBee has delivered revenue growth since our IPO of a compounded annual growth rate, KEGA, of 48%, to last 12 months September 25 and strong margin expansion in the UK with an adjusted EBITDA margin improvement from negative 166% pre-IPO to positive 10% over the last 12 months period. Furthermore, operating margin pre-marketing improved from negative 35% pre-IPO to positive 38% over the LTM period. This underscores the strong delivery against our growth and business scalability objectives. With respect to our 2025 guidance framework for pension year as a group, we have outlined our short, medium, and long-term targets. In the short to medium term, by the year end 2029, we expect the group to generate of above £100 million of revenue and an adjusted EBITDA margin of circa 20% by the year end 2029, with the UK considerably contributing to those targets. In the long term, by the year end 2034, we expect the group to generate a quarter of a billion pounds in revenue and adjust the EBITDA margin of circa 50% by year end 2034. Our circa 33 million pounds cash balance puts PensionBee in a strong position to further scale the UK business, as well as invest in the tremendous US market opportunity. continuing to execute on our long-term strategy and delivering on our public market guidance. I would now like to hand back to Romy for concluding remarks.