PayPoint targets record annual profits as parcels, digital payments and Love2shop power Q3

Paypoint ( (GB:PAY) ) has shared an announcement.

PayPoint reported broadly flat group net revenue of £52.7m for the third quarter to 31 December 2025, but highlighted strong operational momentum across key divisions and reiterated that it remains on track to deliver record profits for the full year despite subdued consumer spending and a challenging market backdrop. The parcels business achieved a record peak season with transactions up 6.7%, supported by recovering Yodel/InPost volumes and the accelerating rollout of its Royal Mail Shop-branded services across the Collect+ network, while the Love2shop division saw robust growth in business billings and a sharp increase in physical gift card volumes via its InComm Payments partnership, alongside steady performance in Park Christmas Savings. Payments and Banking delivered double‑digit growth in digital and cash‑to‑digital revenues, helped by wins for its MultiPay platform, expansion of local banking services for Lloyds Banking Group and continued progress in open banking through obconnect, offsetting expected declines in legacy cash and energy revenues. The Shopping division grew service fee income on the back of further PayPoint One/Mini site expansion and strong SME lending via its YouLend partnership, even as card processed values declined in line with weaker consumer spending, while group net corporate debt rose to £131.3m as the company continued to invest and fund shareholder returns. PayPoint underscored its capital allocation strategy with an increased interim dividend and an enlarged share buyback programme targeting at least £30m a year and a 20% reduction in its equity base by March 2028, reinforcing management’s confidence in long‑term growth and its ambition to enhance shareholder returns and maintain an efficient leverage profile.

The most recent analyst rating on (GB:PAY) stock is a Hold with a £539.00 price target. To see the full list of analyst forecasts on Paypoint stock, see the GB:PAY Stock Forecast page.

Spark’s Take on GB:PAY Stock

According to Spark, TipRanks’ AI Analyst, GB:PAY is a Neutral.

Paypoint’s overall stock score reflects a mixed outlook. The high dividend yield and strategic corporate actions are positive, but financial performance challenges and bearish technical indicators weigh on the score. The company needs to address operational and financial risks to improve its market position.

To see Spark’s full report on GB:PAY stock, click here.

More about Paypoint

PayPoint Group is a UK-based payments and technology company that serves SMEs and convenience retailers, local authorities, government bodies, multinational service providers and e‑commerce brands. Operating across shopping, e‑commerce, payments and banking, and the Love2shop incentives and savings division, it provides services ranging from in‑store payment terminals and card processing to parcel collection networks, multichannel bill payment platforms, open banking solutions and gift card and Christmas savings products.

Average Trading Volume: 367,350

Technical Sentiment Signal: Sell

Current Market Cap: £325.4M

For detailed information about PAY stock, go to TipRanks’ Stock Analysis page.