Moonpig has recorded a "strong profit performance" and now expects a "stronger than expected" EBITDA margin in its full-year results.

The online greetings card and gifting platform, which is based in the UK and the Netherlands, said it now expects revenue to reach between £350m and £353m, while its adjusted EBITDA range will be at the top end of its 25% to 27% region.

It is also set to hit double digit growth in adjusted earnings per share.

Moonpig said its revenue growth continues to be "underpinned by strong sales", while it remains focused on delivering its transformation plan in its experiences division.

As part of its update, Moonpig said it expects to complete its six-month £25m share repurchase programme by the end of its current financial year.

It has also announced its intention to start a new £60m share buyback set to commence in its 2026 financial year.

Chief executive officer at Moonpig, Nickyl Raithatha, said: "We are pleased that Moonpig continues to deliver strong profitability and high free cash flow generation, driven by the power of the Moonpig brand. Our strong performance reflects our unique customer proposition and sustained investments in technology and data.

"By using technology, data and AI, we help our customers express themselves and connect with their loved ones, deepening engagement and strengthening loyalty. One in three Valentine's Day cards created on Moonpig and Greetz featured at least one of our innovative personalisation tools, such as AI handwriting, or audio and video messages.

"We've been delighted with the positive reaction to our latest feature, AI generated stickers for the inside of cards, where customers have already created over one million personalised images in just the few weeks since the launch."

However, investment director at AJ Bell, Russ Mould, said the results may not seem as positive as the firm has suggested.

He concluded: "Moonpig’s claims to be a high-growth tech company are looking spurious as the company is set to miss full-year sales expectations thanks to a softer second half performance.

"Nonetheless, the online greetings card seller is profitable and cash generative. News that margins will come in at the top end of expectations and the intention to launch a new share buyback offer compensation to shareholders and explain the shares’ outperformance of the market today.

"The culprits for the weak revenue showing are its Netherlands-focused Greetz operation and its experiences arm – an area where it has a weaker competitive position. Moonpig says it continues to pursue a transformation plan for experiences but if the weak performance persists it may raise questions about the long-term future of the business in the group."

---