PensionBee Group Q1 Earnings Call Highlights

Key Points

• UK growth and profitability: Q1 AUA reached £7.5bn (up 29% y/y) with annual run-rate revenue of £52m (up 43%) and 315,000 Invested Customers, while UK adjusted EBITDA was close to £1m (a 5% margin) and the group hit EBITDA break-even.
• Marketing and U.S. expansion funded: PensionBee plans mid‑teens million GBP marketing spend for 2026 (Q1 UK marketing was £4.7m), is financing U.S. growth from a prior £20m raise, recorded ~£1.2m of U.S. investment in Q1, and cites a B2B U.S. addressable market of about $60bn across 3.9 million participants.
• Customer engagement and AI: Contributions rose about 25% around the tax-year-end, and AI chatbot BeeBot resolves 30–50% of live chat (target 65%), helping lift productivity ~23% y/y with each staff member supporting roughly 1,700 customers.

PensionBee Group LON: PBEE reported continued year-on-year growth in key operating metrics during the first quarter of 2026, while management highlighted ongoing investment in marketing and product development as the company pursues long-term customer and revenue targets across the U.K. and U.S. markets.

U.K. business posts AUA and revenue growth amid market volatility

CEO Romi Savova said the company “continued to record strong year-on-year growth in assets under administration, revenue, and Invested Customers” in the quarter ended March 31, 2026, despite “well-publicized global economic turbulence.” In the United Kingdom, PensionBee ended Q1 with:

• Assets under administration (AUA) of GBP 7.5 billion, up 29% year-over-year
• Annual run-rate revenue of GBP 52 million, up 43% year-over-year
• 315,000 Invested Customers

Savova said the company added “approximately 10,000 net new Invested Customers” in the quarter, with acquisition supported by “a healthy balance of brand and organic activity, paid channels, and partnerships.” She added that the company continues to work toward a longer-term goal of reaching 1 million Invested Customers.

Marketing to increase; new sponsorships highlighted

On the call, management discussed increased marketing investment and the expected cadence of spend. CFO Christoph Martin said PensionBee has been indicating since last year that it would aim to increase marketing budgets over the next few years, and that for 2026 the company is targeting “a number that is around the mid-teens million GBP for the full year.” He added that the “phasing” of marketing spend is typically similar across years and should remain so in 2026.

Savova pointed to new “brand opportunities,” including an expansion of sports sponsorships. She referenced a “recently announced sponsorship of the Saracens on the rugby front,” describing it as a way to access an audience “at a slightly deeper level.” She also said PensionBee expects to announce additional sponsorship opportunities designed to expand reach and interaction frequency with target customers.

Addressing a question about Q1 net new customers being flat year-over-year at 10,000, Savova said a significant portion of Q1 reflects pipeline built in the prior year. She noted that Q1 U.K. marketing spend rose to GBP 4.7 million from roughly GBP 4.1 million in the prior-year period, and said the company is seeing pipeline growth in registrations, transfer requests, and transfers, with a pipeline “bigger than” the one built in Q1 of last year.

Profitability and margins: U.K. profitable in Q1; group at EBITDA break-even

Martin said PensionBee delivered “a strong financial performance despite macroeconomic environment and associated volatility.” In the U.K., he reported adjusted EBITDA of close to GBP 1 million in Q1, representing a 5% margin, compared to negative 11% in Q1 2025. He attributed the improvement to predictable revenue growth and cost discipline, while also noting the company increased its marketing budget by 15% year-over-year.

At the group level, Martin said top-line growth coupled with “continuous cost discipline” resulted in a break-even EBITDA position. He framed PensionBee’s model around two “core value drivers”: predictable, recurring revenue derived from AUA, and scalability through a controllable cost base.

On revenue mechanics, Martin said Q1 revenue margin was 67 basis points, which he said helped convert 29% AUA growth into 32% last-twelve-month monthly group revenue growth. He also said joining customers had higher average incoming balances versus Q1 last year, and that the company expects Invested Customers to continue growing, with a “slightly older average age profile” supported by a larger marketing budget in 2026 compared with 2025.

Customer behavior: contributions rose around 25% through tax year-end

In response to a question on driving contributions from existing customers, Savova said the company saw “a very strong performance” around the tax year-end, with contributions increasing “in aggregate terms around 25%.” She attributed this to customers prioritizing pension savings and to PensionBee’s emphasis on simplifying the contribution process, including “easy bank transfer in 60 seconds or less,” along with tools and education to help customers understand the long-term impact of contributions.

Management also discussed seasonal patterns in net flows per new U.K. customer. Martin said flows per customer are typically lower in Q1 and “ramp up” in Q2 and Q3 as customers bring over additional pension pots after initially joining. He cited net flows from new customers of around GBP 13,500 in Q1 2026 compared with GBP 13,200 in Q1 2025, and noted the company ended last year at around GBP 17,400, describing the pattern as “very predictable.”

On competition and pricing, Savova said PensionBee supports a “diversified pension landscape” and described Q1 as “very exciting” in terms of “pricing moves from various different companies.” However, she said PensionBee has not seen pricing pressure and argued that fees should be compared like-for-like, noting that some providers’ positioning may not include all costs, such as investment costs. She said PensionBee offers “one fee” that includes service and underlying investments, and that the company believes its service is “appropriately priced for the mass market.”

U.S. expansion: brand, product, and B2B strategy emphasized

Savova said PensionBee is “broadening and deepening the foundations for long-term growth” in the U.S., citing brand-building efforts including reintroducing out-of-home advertising in New York City and Chicago. She also said continued product investment contributed to the company winning “Best Retirement Management Platform” at the Fintech Breakthrough Awards for a second consecutive year. Savova added that early customer cohorts have shown engagement with features such as IRA rollovers and the company’s “1% match on contributions and transfers.”

She outlined two B2B distribution opportunities: “recurring small balance rollovers” (where employers force out balances below $7,000) and “plan terminations” related to events such as bankruptcy or M&A. Savova said the combined addressable market is approximately $60 billion across 3.9 million participants annually. She said PensionBee is building a pipeline through RFPs and advisory relationships, with “existing contracts validating the market opportunity.”

On funding, Martin said the company can “substantially and sustainably fund” U.S. expansion, referencing a GBP 20 million raise in October 2024 that was “specifically allocated to the U.S. expansion.” He said the U.K. is “self-funding” as profitability increases and is reinvested into growth. He also discussed U.S. profitability and investment levels, stating U.S. profitability for Q1 was “an investment of GBP 1.2 million,” with cumulative profitability since launch of about GBP 7.6 million, while cash investment was lower at GBP 4.6 million due to intercompany transfer pricing.

Regarding U.S. marketing, Martin said spending of roughly GBP 900,000 in the quarter was “substantially” refunded by SSGA, clarifying that the “vast majority” was refunded—“more than 90%,” and “well above more than 95%.” Savova said billboards are expected to be a “fundamental feature” of the U.S. marketing mix, and that they are contributing to increased customer volume and pipeline growth for 401(k) rollovers and IRA transfers. She also said the out-of-home campaign supports B2B awareness because RIAs and employers are exposed to the advertising through commuting channels.

Martin also addressed a question about the modest sequential change in annual recurring revenue, attributing the Q1 ARR snapshot to market volatility around early April dates in both of the last two years. He said PensionBee has “a significant allocation to U.S. equities,” pointing to the S&P 500 as a proxy and noting that market dips around those dates impacted the ARR calculation (monthly revenue times 12 for March).

Finally, Savova discussed PensionBee’s AI initiatives, including BeeBot and its impact on customer service. She said BeeBot is currently resolving 30% to 50% of live chat volume and that the company aims to raise that to 65% in the short term, while maintaining access to human “BeeKeepers” when customers want direct support. Savova said productivity improved 23% year-over-year, with each staff member supporting close to 1,700 Invested Customers, and described additional AI use cases in software development and future customer-facing features.

Looking ahead, management reiterated a focus on converting brand awareness into customer growth while maintaining disciplined spending and continuing to invest in product-led growth and customer experience improvements.

About PensionBee Group LON: PBEE

PensionBee is creating a global leader in the consumer retirement market with approximately £7 billion in assets on behalf of c.300,000 customers. Founded in 2014, we aspire to make as many people as possible pension confident so that everyone can enjoy a happy retirement. We help our customers to combine their retirement savings into a new online account, which they can manage from the palm of their hand. PensionBee accounts are invested by the world's largest investment managers, collectively looking after more than $10 trillion in savings between them.

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