Foxtons Group (LON:FOXT) Releases Earnings Results

Key Points

• Foxtons' lettings‑led strategy delivered resilience with 5% revenue growth to £172.5m, a 5% rise in adjusted EBITDA and a portfolio of over 32,000 tenancies now generating more than two‑thirds of group revenue.
• The new Renters' Rights Act (effective 1 May) removes fixed‑term tenancies and introduces annual market‑linked rent reviews, which Foxtons expects will expand its addressable market as DIY landlords outsource management and accelerate industry consolidation in its favour.
• Profitability and cash flow are under pressure from a weak sales market and external cost headwinds, with sales still loss‑making and management forecasting a ~£10m working‑capital investment to move to annual lettings billing by 2027 that will weigh on cash flow despite low net debt and comfortable covenant headroom.

Foxtons Group (LON:FOXT - Get Free Report) issued its quarterly earnings results on Thursday. The company reported GBX 5 earnings per share for the quarter, Digital Look Earnings reports. Foxtons Group had a return on equity of 11.08% and a net margin of 9.07%.

Here are the key takeaways from Foxtons Group's conference call:

• The business delivered resilience from its lettings-led strategy with 5% revenue growth to £172.5m, a 5% rise in adjusted EBITDA, flat adjusted operating profit, and a portfolio exceeding 32,000 tenancies that now generate over two‑thirds of group revenue.
• The Renters' Rights Act (effective 1 May) removes fixed‑term tenancies and introduces annual, market‑linked rent reviews and stronger enforcement — Foxtons expects this to expand the addressable market as DIY landlords outsource management, increase tenancy stability, and accelerate industry consolidation in its favour.
• Acquisitions are driving growth and scale — Reading and Watford have already outperformed targets, and the January 2026 purchases in Milton Keynes and Birmingham provide new platforms for organic growth, bolt‑on deals and targeted synergies, with the group targeting >20% returns on invested capital.
• Profitability is under pressure from a volatile sales market and external cost headwinds (Employer NI, Living Wage), with sales still loss‑making and overheads up; management expects a ~£10m working‑capital investment to move to annual lettings billing by 2027, which will weigh on cash flow despite low net debt and comfortable covenant headroom.

Foxtons Group Trading Up 4.1%

LON:FOXT traded up GBX 1.89 on Thursday, reaching GBX 48.04. 101,467 shares of the stock traded hands, compared to its average volume of 720,812. The company has a market capitalization of £141.57 million, a price-to-earnings ratio of 9.61, a PEG ratio of 0.83 and a beta of 1.70. Foxtons Group has a 12 month low of GBX 45.25 and a 12 month high of GBX 68. The company's fifty day simple moving average is GBX 53.13 and its 200 day simple moving average is GBX 54.95.

Foxtons Group Company Profile

Foxtons Group plc, an estate agency, provides services to the residential property market in the United Kingdom. The company operates through three segments: Lettings, Sales, and Financial Services. The Lettings segment engages in letting and management of residential properties. The Sales segment sells residential properties. The Financial Services segment offers mortgages and related products. Foxtons Group plc was founded in 1981 and is headquartered in London, the United Kingdom.

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