CAB Payments (LON:CABP) Releases Earnings Results

Key Points

• Total income rose to £119m (+12% YoY) and adjusted EBITDA reached £35m (30% margin), with strong second‑half acceleration indicating improving profitability and operating leverage.
• The group has reduced concentration risk (top‑5 currency weight down to 32%), serves ~600 active clients with >90% retention, expanded multi‑rail and stablecoin capabilities and opened New York and Abu Dhabi offices, and management reiterated a medium‑term target of high‑teens to low‑20s CAGR for total income (ex‑NII) with potential capital returns from end‑2026.
• Net interest income is a headwind after falling in H2 due to USD rate cuts and hedging (expected to drag in 2026), while operating costs rose ~10% in 2025 and further platform/client‑facing investment in 2026 could pressure near‑term margins.

CAB Payments (LON:CABP - Get Free Report) announced its quarterly earnings data on Thursday. The company reported GBX 5.40 earnings per share for the quarter, Digital Look Earnings reports. CAB Payments had a return on equity of 4.24% and a net margin of 4.59%.

Here are the key takeaways from CAB Payments' conference call:

• Financial momentum — Total income rose to £119m (+12% YoY) and adjusted EBITDA reached £35m (30% margin) with strong second-half acceleration, showing improving profitability and operating leverage.
• Strategic repositioning and diversification — The group reduced concentration risk (top‑5 currency weight down to 32%), now serves ~600 active clients with >90% retention, expanded multi‑rail and stablecoin capability, and opened New York and Abu Dhabi offices to deepen corridors and client proximity.
• Medium‑term targets — Management reiterated a target CAGR for total income excluding net interest income in the high teens to low 20s over the next three years, with continued operating‑leverage improvement and potential capital returns from end‑2026.
• Net interest income headwind — NII fell in H2 due to U.S. dollar rate cuts and hedging actions (about £1.5m half‑on‑half), and management expects a year‑on‑year drag on NII in 2026.
• Rising costs and investment — Operating costs increased ~10% in 2025 and platform/product investment will step up in 2026 (management expects costs to rise ahead of inflation as they add client‑facing staff), which could pressure near‑term margins until revenue scale materializes.

CAB Payments Trading Down 0.2%

CAB Payments stock traded down GBX 0.20 during mid-day trading on Thursday, reaching GBX 87.60. The company had a trading volume of 201,224 shares, compared to its average volume of 522,940. The business has a fifty day simple moving average of GBX 73.27 and a 200 day simple moving average of GBX 60.02. The company has a market cap of £222.38 million and a P/E ratio of 30.21. CAB Payments has a fifty-two week low of GBX 37.30 and a fifty-two week high of GBX 88.90.

CAB Payments Company Profile

CAB Payments Holdings plc and its subsidiaries (CAB Payments) is a market leader in business-to-business cross-border payments and foreign exchange, specialising in hard-to-reach markets. CAB Payments uses its strength of network, technology, and expertise to seamlessly move money where it's needed and is the holding company for Crown Agents Bank, a UK-regulated bank.

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