Allfunds Group maintains guidance despite slight 1H25 revenue miss
Investing.com -- Allfunds Group Plc ( AMS (VIE:AMS2):ALLFG) on Tuesday reported a slight miss in its first half 2025 results but maintained its full-year guidance for platform flows and migrations.
The company posted adjusted EBITDA 3% below expectations due to 1% lower net revenues and 2% higher adjusted operating expenses, resulting in an EBITDA margin of 65.0%.
Despite the miss, Allfunds reported better-than-expected platform service assets under administration (AUA) at €1,602 billion, exceeding consensus estimates of €1,548 billion.
The company also outperformed on platform service net flows from existing clients at €32.0 billion and migrations at €22.1 billion, compared to consensus expectations of €31.2 billion and €20.7 billion respectively.
Net revenues came in at €317 million, slightly below the €321 million consensus. The net platform revenue margin decreased to 3.7 basis points, with platform margin excluding net trading income remaining stable year-over-year at 3.2 basis points.
Allfunds onboarded 24 new distributors in the first half of 2025, down from 42 in the same period last year.
The company’s Alternative Solutions business reached €13.3 billion in distribution AUA, up from €10 billion at the end of 2024, and now includes 191 alternative asset managers.
The Allfunds ETP platform is scheduled to begin live transaction testing in the second half of 2025, while Citi Wealth is expected to launch Allfunds services in EMEA later this year.
For the full year 2025, Allfunds expects platform service net flows between €100-120 billion, leading to 10% growth in platform AUA.
The company revised its subscription revenue growth forecast to mid-single digit percentage from the previous mid to high teens, and now projects total revenue growth of 3-4% for the year.
Allfunds maintained its guidance for revenue growth excluding net trading income at approximately 10% and expects the adjusted EBITDA margin to remain flat half-over-half at around 65%.
The company plans to hold its first Capital Markets Day in the first quarter of 2026, where it will provide updated strategic priorities.
Allfunds shares currently trade at €7.02, with Jefferies analysts maintaining a buy rating and a price target of €8.50, representing 21% upside potential.
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