Gamma Communications lifts revenue and margins on German growth, boosts shareholder returns

Gamma Communications ( (GB:GAMA) ) has shared an update.

Gamma Communications reported 2025 revenue up 11% to £645.8m and a 16% rise in gross profit, driven largely by strong performance in its German operations following the acquisitions of Placetel and Starface, which sharply boosted German gross profit and Group margins. While UK SME headwinds and PSTN switch-off impacts weighed on Gamma Business and trimmed statutory profit, recurring revenues stayed high at 89% and cash generation remained robust, supporting £64m of shareholder returns, further buybacks and fixed dividends through 2027.

The group strengthened its balance sheet and strategic position despite moving into modest net debt after funding the Starface deal, buybacks and dividends, with adjusted EBITDA up 13% and adjusted EPS up 11%. Key strategic milestones included integrating Starface, completing a UK cost restructuring, a record UK launch of Webex for Gamma, expansion of its Service Provider offering to around 27 countries, and a move to the LSE Main Market and FTSE 250, with the board guiding to 2026 performance in line with market expectations.

The most recent analyst rating on (GB:GAMA) stock is a Buy with a £16.00 price target. To see the full list of analyst forecasts on Gamma Communications stock, see the GB:GAMA Stock Forecast page.

Spark’s Take on GAMA Stock

According to Spark, TipRanks’ AI Analyst, GAMA is a Outperform.

Gamma Communications scores well due to strong financial performance and positive corporate events, which indicate strategic growth and leadership confidence. However, technical analysis suggests some caution due to bearish momentum, and valuation metrics indicate the stock is fairly priced. These factors combined result in a moderate overall stock score.

To see Spark’s full report on GAMA stock, click here.

More about Gamma Communications

Gamma Communications is a FTSE 250-listed European provider of business-critical communications technology, offering cloud telephony, messaging, video, AI-enabled customer experience tools and secure connectivity over its own telecoms network. It serves hundreds of thousands of SMEs through channel partners, large corporates and the public sector directly, and has a major presence in Germany alongside UK-focused Gamma Business, a global Service Provider arm and an Enterprise division for complex solutions.

Average Trading Volume: 539,137

Technical Sentiment Signal: Sell

Current Market Cap: £759.3M

See more data about GAMA stock on TipRanks’ Stock Analysis page.