XP Factory Posts Record Festive Sales but Cuts Earnings Outlook Amid Boom Slowdown

XP Factory PLC ( (GB:XPF) ) has shared an update.

XP Factory reported record quarterly sales over the 2025/26 festive period, with UK owned and operated revenue up 4.2% and group year-to-date pre-IFRS 16 adjusted EBITDA edging to £4.8m, but warned that full-year 2026 earnings will fall below market expectations. Escape Hunt delivered standout performance, posting 10% UK revenue growth and site-level EBITDA margins of around 43%, supported by new sites in Canterbury and Sheffield and continued robust like-for-like sales, while the site pipeline remains strong though near-term expansion will be slowed to preserve balance-sheet headroom. In contrast, Boom Battle Bar saw only modest revenue growth of 2.5% as a 7.2% like-for-like sales decline in a weak competitive socialising market, compounded by sharp labour cost inflation, squeezed margins to about 18% and forced the closure of its Southend venue, despite £2m of annualised cost savings. With net debt at £5.6m and sector-wide like-for-like declines and consolidation accelerating, the board now expects FY26 pre-IFRS 16 adjusted EBITDA of £5.0m–£6.0m and signals that FY27 will be a year of consolidation, moderating new openings but aiming to position both Escape Hunt and Boom to benefit as weaker rivals exit the market.

The most recent analyst rating on (GB:XPF) stock is a Hold with a £14.00 price target. To see the full list of analyst forecasts on XP Factory PLC stock, see the GB:XPF Stock Forecast page.

Spark’s Take on GB:XPF Stock

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

XP Factory PLC’s overall stock score is primarily impacted by its financial instability, characterized by high leverage and cash flow challenges. Technical analysis further indicates bearish momentum, while valuation metrics highlight the company’s lack of profitability. The positive corporate events related to employee engagement do not significantly offset these concerns.

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

More about XP Factory PLC

XP Factory plc is a UK-based experiential leisure group operating two fast-growing brands: Escape Hunt, a global provider of escape-room experiences through UK-owned venues, international franchises across five continents and digital games; and Boom Battle Bar, a UK network of owner-operated and franchised competitive socialising venues offering games such as augmented reality darts, axe throwing, mini-golf and shuffleboard alongside themed cocktails, drinks and street food. The company targets both leisure and corporate teambuilding customers and positions its brands at the premium end of the market with strong customer ratings.

Average Trading Volume: 423,990

Technical Sentiment Signal: Buy

Current Market Cap: £24.52M

For an in-depth examination of XPF stock, go to TipRanks’ Overview page.