Moonpig posts higher revenue, profit as gifting platform expands customer engagement

U.K. personalized product platform Moonpig Group reported another year of steady growth for the fiscal year ended April 30, 2026, driven by higher average order values, continued customer growth, and strong cash generation. The online greeting card and gifting company, whose brands include Moonpig, Greetz, Red Letter Days, and Buyagift, increased revenue 6.5% to £373 million while adjusted EBITDA rose 8.1% to £104.6 million. Adjusted earnings per share climbed 19.5% to 18.0 pence, reflecting both improved profitability and the impact of ongoing share repurchases.

The company generated £73.5 million in free cash flow, an 11.2% increase over the prior year, allowing Moonpig to continue investing in technology and operations while increasing shareholder returns. The board proposed a 25% dividend increase to 3.75 pence per share and announced plans to repurchase up to £65 million of shares during fiscal 2027 after completing £60 million in buybacks during fiscal 2026.

Revenue growth was led by the company’s core Moonpig brand, which posted an 8.6% increase for the second consecutive year. Greetz, its Netherlands-based business, returned to modest constant-currency growth of 1.5%, while the Experiences business continued to recover despite a 4.5% revenue decline as the company broadened its product offerings and improved the customer experience. Overall active customers increased to 12.3 million from 12.0 million a year earlier, while total orders rose 2.1%. Average order value increased 5.7%, helped by consumers purchasing higher-value gifts, larger greeting card formats, and premium delivery services.

Gross margin slipped to 58.4% from 59.6% as Moonpig invested in enhanced delivery options, including expanded tracked shipping and premium next-day services. However, operating efficiencies—including automated parcel sorting and bringing giant-card production in-house—helped offset rising labor costs and supported an adjusted EBITDA margin of 28.0%, above the company’s long-term target range of 25% to 27%.

The company continued expanding its gifting assortment with new partnerships that included Boots, JoJo Maman Bébé, Laura Ashley Flowers, and additional Next product categories. Gift attachment rates rose modestly to 17.9% of orders, while new offerings in flowers, curated gift bundles, and experiences contributed to higher spending per transaction.

Moonpig also continued investing heavily in personalization technology and artificial intelligence. During the year, its database of customer occasion reminders grew 11.2% to 113 million reminders, while memberships in Moonpig Plus and Greetz Plus increased nearly 30% to 1.2 million. The company expanded AI-powered creative tools, including Face Swap and enhanced editing capabilities, with creative features now used on 31 million greeting cards during the year, more than double the previous year. Management views these data assets and personalization capabilities as key competitive advantages for increasing customer frequency and lifetime value.

Chief Executive Officer Catherine Faiers, who joined the company in March, said the business is well-positioned to capitalize on consumers’ desire to maintain personal relationships despite increasing digital communication.

“These results demonstrate the strength of Moonpig Group’s brands, customer proposition and business model,” Faiers said. “The Group delivered good growth in revenue, profitability and cash generation whilst continuing to invest in the capabilities to support our future ambition.” She added that Moonpig’s combination of trusted brands, proprietary customer data and operational capabilities provides “a powerful foundation to deepen customer relationships, unlock more value across the Group and deliver attractive returns for shareholders over the long term.”

Looking ahead, Moonpig said trading at the start of fiscal 2027 has been in line with expectations. The company maintained its financial framework, targeting mid- to high-single-digit annual revenue growth, adjusted EBITDA margins between 25% and 27%, and double-digit growth in adjusted earnings per share while continuing to return excess capital to shareholders through dividends and buybacks.

Moonpig Group plc