Pensionbee Group (LSE:PBEE) — Q3 2026 Results for the quarter ending 30 September 2026

0:00 Good afternoon, and welcome to the PENSIONBEE Group PLC Q3 Results Presentation. That is recorded meeting. Investors will be in listen only mode. Questions are encouraged and will be submitted anytime by the Q and A tab situated in the right hand corner of your screen. If you'd like to ask a question verbally, please just follow the instructions, type a question mark, and we will unmute your mic and, enable you to communicate with the team. The company may not be in a position to answer every question received during the meeting itself. However, company can view all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like

0:32 to hand you over to team at PENSIONBEE PLC. Good afternoon. Good afternoon, and welcome to PENSIONBEE's q three twenty twenty six results announcement covering trading for the period ending 09/30/2026. I'm Romy Savova, the CEO of PENSIONBEE GROUP. For those of you who are new to the PENSIONBEE story, we are creating a global leader in the consumer retirement market. We exist to help our customers prepare for and enjoy a happy retirement. We enable them to combine their old retirement accounts into a new online plan. We enable them to make contributions to invest in line with their objectives with money managed by the world's largest asset managers, and ultimately to withdraw and spend their retirement savings.

1:21 Our aspiration is to build a lifetime relationship with our customers, generating predictable and scalable revenue for our company and for our investors. Over the third quarter of twenty twenty six, we continued to record strong year on year growth in assets under administration, revenue, and profitability as we executed on our long term strategy. Turning now to our individual country segments. In The United Kingdom, we closed the quarter with assets under administration of £9,000,000,000, representing 29% year on year growth and annual run rate revenue approaching £60,000,000, representing 26% year on year growth.

2:07 Over the third quarter, we onboarded approximately 10,000 net new invested customers through our effective advertising approach, bringing the total for the year to date to 32,000. New customer growth reflected a healthy balance of brand and organic activity, paid channels, and partnerships, including our born to retire campaign and our channel four weather sponsorship. Over the quarter, we continued to grow the average account size with the average customer now holding £26,700 with PENSIONBEE above our guided range of 20 to £25,000. Alongside customer and asset growth, we continue to invest in productivity.

2:54 Bbot is now resolving over 60% of its live chat volume, up from 50% at the end of the second quarter, and we launched our refreshed app on iOS. Overall, we generated a productivity improvement of 16% year on year with each staff member supporting close to 18,000 invested customers. The UK business was profitable for the quarter and delivered a 14% adjusted EBITDA margin on a last twelve months basis. Turning to The United States. Over the third quarter of twenty twenty six, we have been broadening and deepening the foundations for long term growth. In line with our State Street partnership, we continue to build brand awareness and drive customer acquisition in the large US retirement savings market.

3:46 We expanded our out of home advertising campaign from New York and Chicago to seven US markets with our £1,100,000 US marketing investment substantially reimbursed by State Street. We closed the quarter with over 500 US invested customers and assets under administration of $6,000,000 with early customer cohorts contributing at a rate of 21% in line with The UK. Over the quarter, we continued to advance our business offering, which we offer to employers, usually through adviser intermediaries and third party administrators. It is competitively priced with a high quality investment portfolio and personalized service for participants. We are building our distribution across this ecosystem.

4:33 Our record keeper integration with tRowe Price went live in August, and we continued to advance our intermediary relationships.

4:42 Last quarter, we confirmed that over the medium term, we are targeting 100 intermediary relationships with each expected to deliver approximately $10,000,000 in recurring annual inflows once fully onboarded. This quarter, we report that we are in the process of onboarding 18 intermediaries, and the majority have already referred their first clients to us. This quarter, we also began onboarding our first Fortune 500 employer client. This week, we launched our online onboarding portal to support a growing volume of plans selecting PensionBee services, and our progress is compounding as relationships established in 2025 generate further client referrals and recurring inflows.

5:30 At scale, our business line alone is expected to support a billion dollars of recurring annual inflows. Looking ahead, PENSIONBEE remains focused on converting brand awareness into customer growth across both channels. The company will continue to be disciplined with spend whilst continuing to invest in product led growth, enhancing the customer experience through new features and capabilities that drive organic customer acquisition and retention. I would now like to hand over to Christophe Martin, PENSIONBEE GROUP's CFO, who will cover the financial update. Thank you very much, Rumi. Hello and a warm welcome from from myself to everyone. I'm pleased to cover the financial section of the Q3 twenty twenty six trading update.

6:17 In Q3, PENSIONBEE had strong financial performance showcasing the resilience of our business model. In The UK, we delivered 29% year on year growth in our AOEE base to second £9,000,000,000 and 26% year on year growth in ARR to approximately £60,000,000. UK adjusted EBITA profitability on the last twelve months basis was GBP 7,800,000 at 14% margin in comparison to 10% in Q3 twenty twenty five. At the group level, top line growth, coupled with continuous cost discipline, led to group revenue of GBP 14,800,000 for Q3, plus 31% year on year growth and a positive adjusted EBITA of GBP 2,400,000 at 5% margin on a last twelve months basis.

7:12 Those continuous achievements are further testament of our consistent and reliable execution against our public market guidance and is ultimately derived from the business core value driver, which are: first, predictable and recurring revenue and second, business scalability. The first value driver is PENSIONBEEE's predictable and recurring revenue, which is generated from a durable base of assets under administration and is derived from the assets of existing and new customers. In Q3, we have seen a 29% year on year ERA growth to GBP 9,000,000,000. The vast majority of our ERA base is derived from existing customers, customers who remain with PENSIONBEE for a long period of time and continue to build up their pension saving with us, resulting in value generation for decades to come.

8:07 This is because our average, customer is around 42 years old, and they're building up their pension saving with PENSIONBEE, which means that courts on an underlying value basis, I. E, before any impact of capital markets, are resilient over time. In Q3 twenty twenty six, we recorded strong underlying KPIs on retention rates and flows with an invested customer retention rate of above 95% and value retention rate of circa 100%. Next, AoE is also derived from new customer acquired through our proven approach to cost discipline new customer acquisition. Over Q3 twenty twenty six, we added close to 10,000 new invested customers onto our technology platform and 32,000 year to date. Joining customers had higher average incoming balances in Q3 this year compared to Q3 last year.

9:04 For the remainder of the year, we expect the total number of new invested customers to continue growing. In Q3 this year, gross inflows, was £426,000,000 a 21% year on year growth and net flows of £220,000,000 at plus 9% year on year growth, underscoring PENSIONBEE's strength, resilience and predictability. As it is customary in the industry, pension assets are invested in capital markets, and PENSIONBEE benefited from supporting some supportive capital markets in Q3. The compounding EOA base is subsequently converted into our revenue base owing to our resilient gross revenue margin. In Q3 twenty twenty six, we have seen a revenue margin of 68 basis points, which enabled us to convert the 29% of year on year growth into the last twelve months group revenue growth of 36% to GBP 53,600,000.

10:05 In conclusion, owing to the compounding UA base and resilient revenue margin, we are deriving predictable and recurring revenue, which is PENSIONBEE's first value driver. The second value driver is PENSIONBEE's business scalability owing to the controllability of our cost base, which is thereby continuing to decline as a proportion of revenue.

10:27 For The United Kingdom, the scalability dynamics of predictable and recurring top line growth, coupled with cost discipline, led to an improvement in adjusted EBITA margin to 14% on the last twelve months basis for Q3 twenty twenty six compared to 10% in Q3 twenty twenty five, an improvement by GBP 3,700,000 in adjusted EBITDA while simultaneously investing into our growth and increasing the marketing budget by 36% year on year on a year to date basis. With respect to our guidance framework for PENSIONBEE as a group, we have outlined the short-, medium- and long term targets. In the short- to medium term, by year end twenty twenty nine, we expect the group to generate revenue of above GBP 100,000,000 and an adjusted EBITA margin of, take up, 20% by year end twenty twenty nine, with The UK considerably contributing to those targets. In the long term, by year end two thousand and thirty four, we expect the group to generate above GBP

11:31 $0.02 5,000,000,000 in revenue and an adjusted EBITDA margin of circa 50% by year end two thousand and thirty four. Our Ticker £31,000,000 cash balance puts PENSIONBEE in a strong position to further scale the UK business as well as invest into the tremendous U. S. Market opportunity to continue executing our long term strategy and delivering on our public market guidance. I would now like to hand back to Romy for concluding remarks.

12:03 Thank you very much, Christophe. We are pleased to close out another successful quarter, and we look forward to hearing the community's questions. Fantastic. Thank you very much indeed for your update and presentation. Ladies and gentlemen, do please continue to submit your questions using the q and a tab situated in the top right hand corner of your screen. Just while the team take a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As you can see, we've had a number of questions throughout today. So thank you very much indeed for those investors. We'll start with Jude at RPC. Thanks, Jude, for your questions. We've got three parts to it, guys. So let's start with the first one. On new customers, gross flows per new customer looks higher sequentially and year on year. I know at q two, you said you were targeting high value customers.

12:53 Has that continued into q three, and should we expect similar pot sizes to be onboarded in 2027? Well, we are certainly targeting customers with slightly larger account sizes. And part of the reason for this is that we, of course, target payback on on our marketing investment. Part of it is also strategic and organic from the fact that our brand in The United Kingdom, in particular, has really grown up and is attracting a wide variety of customers. We we believe that we can serve well at the lower end of the scale, you know, whether that's someone with a £5,000 account all the way up to the million pound account, and we do certainly see some very large accounts transferring in there.

13:43 So so, yes, that remains deliberate. We we do wanna serve across the across the board, and you should expect to continue seeing us grow the average account size per customer. That's great. Thanks, Rami. Second part to to two questions here. Having risen for several quarters, your LTM revenue margin is now stable versus Q2 at 0.68%. Should we expect it to be maintained at this level going forward? Yes. I think that's a very good observation. As you can see, the last few quarters, actually, it was stable at that kind of level at 67 basis points in Q1, 68 basis in Q2 and 68 basis in Q3. So we would expect, those margins to continue at that level.

14:34 As as said, this is due to a blend effect or mix effect, of the AOA as they are allocated, differently across the funds, into funds that are a little bit more actively managed. They come also to us with a slightly higher, price point. So when you look at the net revenue margin, that actually, as a proportion of the AOE base, that actually has remained quite consistent. So, yes, in short, we would expect that margin to be around that level. Thank you. The third part we've got here is we're now nearing the connection deadline for the pensions dashboard program. Are you able to offer an update on how you think the program is progressing and any preparations you're making when it finally goes live?

15:20 Yes. We do see the program progressing. We believe that the vast majority of pensions and pension providers are now connected to the system. We we certainly are, and ongoing testing with consumers is progressing. We believe that it will still take some time for the program to go live. So for those who aren't familiar with the ins and outs of the pension dashboard program, the government has committed to giving a six month notice window, and that will trigger the kind of readiness point for pension providers to expect the dashboard to be available through the .gov website. And so we have not yet had that starting gun launching, and so we can most definitively say that it will be at least another six months.

16:12 And we do believe that the launch point will be made very public because, you know, the government will want consumers to be aware that this is a service that is now being offered and importantly for pension providers to prepare themselves for that service being being offered. I would say that relative to other pension providers, we are in the fortunate position of our data being very clean and very available. And, therefore, we, you know, we we do expect to see kind of good matching rates on on the dashboard. At the same time, we are very much looking forward to many of our customers and potential customers seeing pensions that they know they have but have lost track of or pensions they don't know they have at all and using that as a springboard for consolidation.

17:02 Great. Thank you. Another question we've got here. With The US opportunity being substantial, how do you look to bridge that gap from the 6,000,000 AUA to the billion target?

17:13 This is an excellent question, and I can certainly comment on the progression of The US build out. You know, the the $1,000,000,000 target is a kind of very important milestone for for any business like ours, and we we also see the potential to build a billion dollars of recurring net inflows. And if I just focus on our business to business channel, you know, which we've spoken quite a lot about over the last couple of quarters, the plan there is really to keep onboarding intermediaries. Our business offering to employers essentially enables employers to move old accounts from former participants out of their four zero one k plan and into PENSIONBEE IRAs.

18:01 The smaller accounts under $7,000, those are kind of automatic rollovers, so that is done automatically, and the employer simply gives notice. Employers are also using us for accounts that are worth over $7,000 where we market to their former employees. And then finally, when an employer makes an acquisition or is themselves acquired, that entire four zero one k plan can terminate, and the entire four zero one k plan can move into IRAs. And so that is a very substantial opportunity. We've quantified that the small balance rollovers,

18:41 you know, those kinda generate around $4,000,000,000 worth of annual inflows across the market. The terminations are probably closer to $55,000,000,000, and then voluntary rollovers is probably a trillion dollar annual rollover market in and of itself. So, clearly, the market opportunity is very substantial as as you've mentioned, and our work with employers is predominantly generated by intermediaries. These intermediaries would be an adviser. In some cases, they are a third party administrator. In other cases, they are a record keeper with a panel offering. And so this quarter, we disclosed some progress on our target of reaching 100 intermediaries, noting that we're currently onboarding 18 of those.

19:28 Each intermediary, we think, has around fifty four zero one k plans that they service, potentially more.

19:37 And as we are onboarding those intermediaries, we are being added as the small balance rollover provider for each one of their clients. So we can absolutely see each intermediary onboarding us for one employer and then the second, third, fourth, and and so on. And, of course, every single year, those employers will conduct a force out exercise, meaning they remove the accounts of employees who have left. Again, the under seven thousands are automatically rolled over. The over seven thousands, there is a marketing exercise that goes on. But but either way, this becomes annual recurring business as each one of the employers on boards. And so the the route for getting from where we are today to the billion dollars of total AUA, but also billion dollars of net recurring inflows really relies on onboarding those 100 intermediaries who we believe through their entire client book can generate $10,000,000 worth of annual net inflows with that $10,000,000 consisting of small balance rollovers, voluntary rollovers, and also planned terminations.

20:46 So I hope that gives you a bit more context on our b to b line. On our b to c line, we continue to advertise very successfully at the top end of the funnel, and we continue to work on the automations and the conversion activities for actually moving the funds from record keepers here in The United States and building out those connections in the same way that we that we built them out over a long period of time in in The UK. And I'll stop there.

21:13 Fantastic. Thank you very much indeed. Question from William. Of these 18 intermediaries, what is the average pot size of each employer's IRA pot, they're working with? Of each intermediary. So each intermediary would be an adviser or a third party administrator. And so each adviser or third party administrator will have, you know, we think at least fifty four zero one k clients themselves, but some of them have thousands. So if you're a third party administrator, you might be administering, you know, sort of ten thousand four zero one k plans.

21:49 And so what then really, you know, kind of drives the the unit economics there is how big is the four zero one k plan, and that really depends on the size of the intermediary. But four zero one k plans can range all the way from a million dollars, you know, all the way up to kind of 35 or $40,000,000,000. And so there's a very, very broad range. But, of course, you know, let's apply the the laws of averages. And, you know, we've made a fairly conservative assumption that each each intermediary will have on average fifty four zero one k four zero one k clients. And within those four zero one k's, there will be different account sizes. So the smaller ones will, of course, by definition, be under $7,000.

22:35 The larger ones will, by definition, be above $7,000. We see that the median very much persists around here. So, you know, the median account that we see coming through the door is probably around $25,000.

22:49 And so, you know, you can apply the the laws on average there. I would say that an important component is the the termination components, and that's a very different setup in The United States. So when when a company is bought, they can terminate the whole four zero one k plan. So that can be anywhere from a million dollars to $250,000,000 at the top end of of what we've seen.

23:13 And, of course, those are some of the more lucrative opportunities that we look at from from an asset perspective. And I hope that gives you some context on the averages. Yeah. Thank you. William just put a follow-up really saying I'm asking about the average potential pot sizes of each of the 50, which I think you did cover off there, Romy, just in case there's anything else you wanna add to that. If not, we've got another question here just on how are The US partnerships performing in your view?

23:40 The US partnerships in general? Yes. You know, I think the the partnerships are performing well. We we believe that when we see intermediaries, and I assume that's what you mean by by partnerships, when we see intermediaries referring multiple clients to us, so multiple plans, multiple four zero one k plans, that we are delivering a good service. And we believe that the intermediaries, in particular, care very much about delivering a good service to their to their plan sponsor clients. And what I mean by good service is, of course, the the costs, it's the investment performance, and it's also the participant experience. And within the market, that's certainly how we differentiate ourselves.

24:28 Our costs are very competitive relative to to incumbents. We we have a research piece out in the market at the moment, which which has been covered by USA Today today that that really shows that, you know, the service really matters and what you get from these small balance rollovers can really make a difference to participant accounts over a ten, twenty, thirty year period. And we believe that advisers and and third party administrators are very motivated to give those plan sponsors a good service. So the fact that we see them onboarding more and more clients, you know, mean... Means that they are satisfied. And we also think that builds a good word-of-mouth effect. So if you have one adviser that's satisfied with our service or one TPA third party administrator that's satisfied with our service, they will they will refer us to their peers, and we definitely see some of that effect taking hold because, you know, we've moved kind of from from a starting point of having 18 intermediaries that are in the process of being onboarded.

25:31 Fantastic. Thank you. Steven has raised his hand, so I'm taking that you wanna ask a question. Just request, control of your mic there, Steven. Just sent that request to you now.

25:49 If you can just accept that, we can just open up your mic and then, take your question. I see. Steven, you just declined that. I see can you got a raised hand. If you do wanna pop a question in, then, please do push that through. Just wait for a couple of moments, and see if, that does come on. No. Yeah. Hands down. So that's okay.

26:16 Seeing if any other questions come through, let me just have a look at those, now. William, I'm not sure if you've got a couple more questions to come through. We've had two from you. If you've got any more, please do push those through. Just give you a couple of moments to do that. If you have got a couple more questions, just perfect. I can see that come through. Thank you, William. Right. Two parts to William's questions. First part reads, do you expect Q4 customer growth and net flows to be higher or lower than Q3? Normally, seasonality points to the figures being lower, but I wonder if the benefit of your higher marketing spend could offset this. Yeah. Happy to take this one.

27:02 And very good observation, actually, William, around the marketing spend. I think we have been very, clear in the past that we see, now as we have achieved profitable growth that we actually take that, incremental, profit and reinvest it back into the company in The UK to drive future growth. And as you have observed, when you look at the year to date, marketing numbers, which have been about 14,000,000... Close to £14,000,000 compared to £10,000,000 last year, so a 36% increase. But, also, when you just look at the q three, quarter alone, it's £4,400,000. So that's almost the highest marketing, or it is actually the highest marketing, amount, that we invested, pretty much since the, since the IPO.

27:58 So what is really clear is that we're reinvesting into growth and, growing the The UK business. So in short, I think it will concur with your observation. We, continue to invest, and therefore, q three, I think, we'll continue, to see strong growth, across new invested customer as well as net flows. And then we also mentioned that publicly in the past that we will probably expect the, the marketing budget to, potentially continue to grow, given that given that we are now reinvesting in the growth of the business. I hope that answers the question. Thanks, Christoph. Second part to William's question. You had net outflows from existing customers in Q3. Why was this? My back of the envelope is that you had a spike in the case side exiting.

28:47 If it was more a spike in the number of customers leaving, can you please provide some clarity on the gross net customer components of the plus 32,000,000 net, please, to 337,000? Yeah. I think overall, that ties really to our, high retention rates. So we have a customer retention rate of greater than 95%, but on a value retention rate around a 100%. The flow statistics you referred to in q three is at the same level roughly as q four last year, and it can be split roughly 50%... Draw down 50% attrition. And with regards to your, question around gross and, net customer, that can be very, conveniently then, approximated with using the volume or customer retention rate of 95% plus or less than 5% attrition, applying that to the the average investor customer base to back out the attrition, and then you should get to your gross numbers.

29:58 That would be a methodology that would hold true for the first three quarters as well. So I hope that helps with the mathematical part of the question. Fantastic. Thank you, Christophe. That concludes the questions we've come through. And of course, if we do get any further questions that do come through, the team will able to review those and be able to publish responses on the Investor Me company platform. Just before redirecting investors to provide you with their feedback, I know it's particularly important to you and the team, Rommel, if I could just ask you for a few closing comments, please. Yeah. Absolutely. We wanna thank everyone for joining the call today. We continue to make great progress in both The United Kingdom and also The United States, and we're very pleased to keep engaging with investors and the broader community around their progress.

30:44 So thanks for joining us today. Fantastic. Thank you indeed for updating investors today. Can I please ask investors not to close the session? It should be automatically redirected to provide your feedback in order that the management can better understand your views and expectations. So it's going to take a few moments to complete and those are greatly valued by the company. On behalf of the management team of PENSIONBEE GROUP PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.