Foxtons Group (LON:FOXT) outlined full-year 2025 results that management said demonstrated resilience amid a “challenging operating environment,” with growth in revenue and adjusted EBITDA offset by volatility in London sales and external cost pressures.
Chief Executive Guy Gittins said the group delivered 5% growth in both revenue and EBITDA during the year, supported by incremental acquisition revenues and operational progress in lettings, cross-selling, and financial services. He added that higher revenues helped offset cost headwinds and a volatile sales market, resulting in flat adjusted operating profit for 2025. Management emphasized that the company’s strategy has positioned Foxtons as a “lettings-led business,” with recurring lettings revenues accounting for more than two-thirds of group revenue and lettings representing 64% of revenue for the year.
2025 financial performance and shareholder returns
Adjusted EBITDA rose 5% to GBP 25.3 million. Statutory profit before tax was GBP 16.9 million, and net free cash flow increased 14% to GBP 11.2 million. The board declared a final dividend of 0.93 pence per share, taking the full-year dividend to 1.17 pence per share, unchanged from the prior year. Hough said the group also bought back 5.5 million shares during the year through programs announced in April and September.
On costs, Hough highlighted an early exit from the Chiswick Park head office lease and “rightsizing” of head office space, which he said would generate GBP 1.5 million of operating cost savings from January 2026. He added that management was “redoubling” cost focus through 2026 to protect profitability given market conditions.
Lettings growth, market share gains, and the Renters’ Rights Act
Management repeatedly pointed to lettings as the core of the group’s earnings visibility. Gittins said the tenancy portfolio now exceeds 32,000 tenancies, up more than 50% over the last five years. He also said the company delivered 8% lettings market share growth in 2025, supported by improved landlord attraction and retention, and described Foxtons as London’s largest agent and the U.K.’s largest lettings brand.
Hough said lettings revenue increased 5% to GBP 111.0 million, driven primarily by GBP 5.2 million of incremental revenue from Reading and Watford acquisitions, plus GBP 0.6 million of higher like-for-like revenue reflecting property management growth. That was partly offset by GBP 0.9 million lower interest earned on client monies due to lower Bank of England rates. Lettings contribution margin rose 100 basis points and adjusted operating profit in the segment increased 9% to GBP 29.8 million, with margin rising to 26.9%.
On the London lettings market, Gittins said tenant demand remained strong in 2025 and supply levels were “healthy,” though supply softened ahead of the autumn budget amid speculation about possible landlord tax changes. He said supply picked up in December after “no major tax reforms” were announced, contributing to a record December for deal volume and revenue. Rental prices were described as broadly flat, with the market balancing supply and demand against tenant affordability.
Foxtons also discussed the upcoming Renters’ Rights Act, set to take effect on 1 May, calling it one of the biggest changes to the lettings industry in 25 years. Management said key provisions include the end of fixed-term tenancies in favor of open-ended periodic agreements, annual rent increases requiring evidence they are in line with the market, and stronger enforcement powers for local authorities.
Gittins said the compliance burden could create opportunities for Foxtons as more “DIY landlords” use agents, landlords gravitate to higher-quality operators, tenancy stability increases, and regulation accelerates sector consolidation. Hough said Foxtons has been reducing billing terms since 2023 and expects around GBP 10 million of working capital investment across 2026 and 2027 as it transitions the portfolio to annual billing, with completion expected by 2027. The group recorded a GBP 4.4 million working capital outflow in 2025 related to this transition.
Sales volatility, strategy shift, and pricing discipline
Gittins described the London sales market as “highly volatile” in 2025. Market volumes in Foxtons’ London markets were up 2% for the year, with a sharp first-quarter rise of around 30% compared with Q1 2024 driven by first-time buyers transacting ahead of the Stamp Duty deadline. Activity weakened in Q2 due to the pull-forward effect, and the second half was impacted by the delayed autumn budget and speculation about policies such as Stamp Duty abolition and “mansion taxes,” which management said dampened demand.
Hough said sales revenue grew 6% (GBP 2.7 million), mainly due to GBP 3.4 million of incremental acquisition revenue, partly offset by GBP 0.8 million lower like-for-like revenues. Like-for-like revenue fell 2%, reflecting 3% higher transaction volumes but a 5% decline in average revenue per transaction, which management attributed to a higher mix of lower-value first-time buyer properties in Q1 and expansion into commuter markets that typically have lower revenue per transaction but higher volumes. The adjusted operating loss in sales widened to GBP 5.7 million, which Hough said reflected increased operating costs and a decision to maintain “bench strength” despite weaker second-half conditions.
Gittins said Foxtons’ strategic focus remains on the “volume segment” of the market—particularly properties priced below GBP 1 million—where it is strongest and where volumes are more resilient. He also said buyer demand in early 2026 remained held back by weak consumer confidence and macroeconomic concerns, and argued that vendors need to price competitively to attract offers.
As part of a repositioning effort, Gittins said Foxtons appointed a new managing director of sales, James Stevenson, in November and has an operational plan to improve sales profitability. He characterized sales as a complementary part of a full-service proposition that supports customers through the property life cycle, including helping landlords expand or reposition portfolios.
Acquisitions, integration plans, and technology initiatives
Management said acquisitions remain central to its growth strategy. Gittins noted that Reading and Watford (acquired in October 2024) contributed significantly to 2025 revenue growth, while newer acquisitions in Milton Keynes and Birmingham (completed in January 2026) create platforms in “high-value markets” that complement London. Hough said Watford was integrated onto the Foxtons operating platform in 2025, with Reading planned for 2026.
In Q&A, management said the Birmingham acquisition (FleetMilne) is a city-center specialist with leading market share in that area, and that Foxtons is already speaking with other agencies nearby as potential bolt-on opportunities to expand coverage. The company emphasized that the moves outside London are targeted rather than an attempt to become a national agent, and said it remains open to London M&A if pricing and fit are right.
Asked about acquisition valuations, Hough said market multiples depend on location and the balance of sales versus lettings, but that “broadly speaking” the range being seen is around two to three times lettings revenue, consistent with 2024 and 2025.
Operationally, Gittins highlighted customer satisfaction scores “over 80%,” supported by a real-time feedback system and AI-powered sentiment analysis. He also pointed to an exclusive partnership allowing customers to earn Avios points, and described AI use cases including lead scoring for a head office calling team and AI-supported training tools aimed at speeding up new recruit productivity. Management said it evaluates AI investments based on measurable financial impact.
Looking ahead, management said it expects 2026 lettings market dynamics to remain supportive, with the Renters’ Rights Act viewed as a growth opportunity. In sales, Foxtons said it is repositioning for current conditions to improve profitability. Overall, the company is targeting year-on-year revenue and profit growth, supported by organic initiatives, acquisitions, and continued cost discipline, while relying on recurring lettings revenues as a foundation for earnings stability.
About Foxtons Group (LON:FOXT)
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.
