CAB Payments (LON:CABP) Announces Quarterly Earnings Results

CAB Payments (LON:CABP) issued its quarterly earnings data on Thursday. The company reported GBX 5.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. CAB Payments had a net margin of 4.59% and a return on equity of 4.24%.

Here are the key takeaways from CAB Payments’ conference call:

• Financial momentum — Total income rose to £119m (+12% YoY) and adjusted EBITDA reached £35m (30% margin) with strong second-half acceleration, showing improving profitability and operating leverage.
• Strategic repositioning and diversification — The group reduced concentration risk (top‑5 currency weight down to 32%), now serves ~600 active clients with >90% retention, expanded multi‑rail and stablecoin capability, and opened New York and Abu Dhabi offices to deepen corridors and client proximity.
• Medium‑term targets — Management reiterated a target CAGR for total income excluding net interest income in the high teens to low 20s over the next three years, with continued operating‑leverage improvement and potential capital returns from end‑2026.
• Net interest income headwind — NII fell in H2 due to U.S. dollar rate cuts and hedging actions (about £1.5m half‑on‑half), and management expects a year‑on‑year drag on NII in 2026.
• Rising costs and investment — Operating costs increased ~10% in 2025 and platform/product investment will step up in 2026 (management expects costs to rise ahead of inflation as they add client‑facing staff), which could pressure near‑term margins until revenue scale materializes.

CAB Payments Trading Down 0.2%

Shares of LON CABP opened at GBX 85.50 on Friday. The firm has a market cap of £217.05 million and a P/E ratio of 29.48. The business’s 50 day moving average is GBX 73.75 and its 200-day moving average is GBX 60.20. CAB Payments has a 1-year low of GBX 37.30 and a 1-year high of GBX 88.90.

About CAB Payments

CAB Payments Holdings plc and its subsidiaries (CAB Payments) is a market leader in business-to-business cross-border payments and foreign exchange, specialising in hard-to-reach markets. CAB Payments uses its strength of network, technology, and expertise to seamlessly move money where it’s needed and is the holding company for Crown Agents Bank, a UK-regulated bank.