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Foxtons (GB:FOXT)
LSE:FOXT
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Foxtons (FOXT) AI Stock Analysis

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GB:FOXT

Foxtons

(LSE:FOXT)

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Rating:68Neutral
Price Target:
40.00 p
▲(4.17% Upside)
Action:Downgraded
Date:08/06/26
Strong financial performance and a positive earnings outlook are the main supports for the score. However, weak price momentum and negative trend signals materially reduce the total, while valuation is only moderately attractive.
Positive Factors
Lettings-led profitability
Higher Lettings revenue and a 100bp margin expansion reflect structurally stickier, higher-margin recurring revenue versus one-off sales. This shifts mix toward predictable cashflows and supports sustained operating profitability and cash conversion through cycles, reducing earnings volatility over the medium term.
Negative Factors
Sales segment volatility
The Sales business remains cyclical and loss-making, with falling revenue per transaction and transaction volatility. Reliance on a weak sales arm can drag group margins and earnings in housing slowdowns, increasing overall profit cyclicality and requiring sustained remediation or structural changes to mix.
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Positive Factors
Negative Factors
Lettings-led profitability
Higher Lettings revenue and a 100bp margin expansion reflect structurally stickier, higher-margin recurring revenue versus one-off sales. This shifts mix toward predictable cashflows and supports sustained operating profitability and cash conversion through cycles, reducing earnings volatility over the medium term.
Read all positive factors

Foxtons (FOXT) vs. iShares MSCI United Kingdom ETF (EWC)

Foxtons Business Overview & Revenue Model

Company Description
Foxtons Group Plc is a holding company, which provides real estate services. It operates through the following segments: Sales, Lettings, and Financial Services. The Sales segment engages in the sales of residential property. The Lettings segment ...
How the Company Makes Money
Foxtons makes money mainly by earning fees and commissions tied to residential property transactions and ongoing rental relationships. (1) Sales: When a property is sold through Foxtons, it earns an agency fee (typically a percentage of the sale p...

Foxtons Earnings Call Summary

Earnings Call Date:Mar 05, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by a Lettings-led strategy: revenue and EBITDA grew 5%, Lettings showed margin and contribution expansion, the tenancy portfolio and market share increased materially, acquisitions are delivering above-target returns, cash generation improved, and the balance sheet is strong. Key challenges include a flat group adjusted operating profit, sales segment weakness and volatility, rising overheads and a near-term GBP 10m working capital investment to transition billing ahead of the Renters' Rights Act. Management emphasizes continued cost discipline, integration of recent acquisitions and leveraging AI/technology to improve productivity. On balance the positive Lettings momentum, cash strength and successful acquisitions outweigh the headwinds in Sales and short-term cost pressures.
Positive Updates
Group revenue and EBITDA growth
Group revenue increased 5% year-on-year to GBP 172.5m (GBP +8.6m) and adjusted EBITDA grew 5% to GBP 25.3m, demonstrating top-line resilience despite a challenging operating environment.
Negative Updates
Flat group adjusted operating profit and margin headwinds
Adjusted operating profit was flat at GBP 22.2m despite revenue growth; group adjusted operating profit margin decreased by 60 basis points to 12.9%, reflecting external cost pressures (employer national insurance, living wage increases) and higher overheads.
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Q4-2025 Updates
Negative
Group revenue and EBITDA growth
Group revenue increased 5% year-on-year to GBP 172.5m (GBP +8.6m) and adjusted EBITDA grew 5% to GBP 25.3m, demonstrating top-line resilience despite a challenging operating environment.
Read all positive updates
Company Guidance
Guidance for 2026 is for year‑on‑year revenue and profit growth, driven by a Lettings‑led strategy anchored on a >32,000‑tenancy portfolio (up >50% over 5 years) that accounted for c.64%–>2/3 of group revenue in 2025 and underpins resilient, recurring cashflows; management expects Lettings market dynamics to persist (rents have grown at a 7% CAGR since 2021 with a medium‑term return to inflation‑linked growth), incremental Lettings revenue to annualize from the Milton Keynes and Birmingham deals, and further share gains from the Renters’ Rights Act opportunity. Key financial and operational metrics and actions: target to complete the transition to annual billing by 2027 with an estimated GBP10.0m working‑capital investment across 2026–27; deliver GBP1.5m of annualized HQ cost savings from Jan‑2026; maintain strict cost discipline; pursue acquisitive growth (management’s ambition is c.15 deals in 2026 from c.10 done to date) targeting aggregate returns ≥20%; and sustain shareholder returns (full‑year dividend 1.17p, final 0.93p; c.5.5m shares bought back and total shareholder returns c.GBP9.1m). Balance sheet guidance: preserve covenant headroom (net debt at 31 Dec 2025 GBP16.9m; net free cash flow GBP11.2m, +14%; adjusted EBITDA GBP25.3m, +5%; adjusted operating profit GBP22.2m, broadly flat), RCF at GBP40m (extended to June‑2028), leverage 0.7x vs covenant 1.75x, interest cover 24x vs covenant 4x, and a target year‑end net‑debt/adjusted‑EBITDA <1.25x.

Foxtons Financial Statement Overview

Summary
Revenue, profitability, and balance sheet quality are all strong: revenue rose from £93.6M to £172.5M, net margins recovered to 7-9%, leverage is low, and equity has grown steadily. Cash generation is solid, though free cash flow has been somewhat volatile and the business remains exposed to cyclical real estate conditions.
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue170.17M172.53M163.93M147.13M140.32M126.47M
Gross Profit83.29M93.18M104.86M93.25M77.56M64.95M
EBITDA31.00M37.23M35.89M24.87M27.57M22.68M
Net Income8.35M12.85M14.00M5.49M9.13M-6.17M
Balance Sheet
Total Assets278.28M272.42M268.16M251.35M226.18M231.19M
Cash, Cash Equivalents and Short-Term Investments1.85M5.47M5.32M4.99M12.03M19.37M
Total Debt67.99M62.41M60.77M59.38M46.46M48.08M
Total Liabilities133.11M127.45M129.18M125.74M103.51M107.68M
Stockholders Equity145.17M144.97M138.98M125.61M122.67M123.50M
Cash Flow
Free Cash Flow19.68M23.99M22.08M12.06M20.32M21.49M
Operating Cash Flow23.20M26.86M24.75M15.67M24.03M23.47M
Investing Cash Flow-15.33M-9.21M-14.38M-17.20M-16.26M-16.11M
Financing Cash Flow-8.60M-17.49M-10.04M-5.51M-18.83M-21.25M

Foxtons Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£251.91M16.0620.71%4.69%5.96%-2.01%
75
Outperform
£280.51M14.8312.56%4.17%25.19%72.02%
68
Neutral
£109.86M13.025.76%3.05%-0.77%-44.83%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
62
Neutral
£22.27M13.6424.42%7.44%-0.54%-7.87%
60
Neutral
£1.31B9.866.53%3.26%-23.35%20.53%
58
Neutral
£1.81B22.349.70%3.22%7.29%20.68%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FOXT
Foxtons
36.85
-18.00
-32.81%
GB:GRI
Grainger
176.10
-14.20
-7.46%
GB:LSL
LSL Property Services
268.00
11.29
4.40%
GB:WINK
M Winkworth
172.50
-8.79
-4.85%
GB:TPFG
The Property Franchise
445.00
-93.26
-17.33%
GB:SVS
Savills
1,090.00
198.74
22.30%

Foxtons Corporate Events

Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Foxtons leans on recurring lettings income as sales slump and RRA bites
Negative
Jul 30, 2026
Foxtons reported a 3% drop in first-half revenue to &#163;83.7m and a 29% fall in adjusted operating profit to &#163;8.9m, as London sales volumes weakened and the Renters&#8217; Rights Act triggered elevated tenant-led terminations that reversed ...
Business Operations and StrategyFinancial Disclosures
Foxtons warns on profit as Renters’ Rights Act and weak sales market bite
Negative
Jul 16, 2026
Foxtons warned that trading since its first-quarter update has been hit by a prolonged downturn in the sales market and short-term volatility in lettings following the UK&#8217;s new Renters&#8217; Rights Act, which scrapped fixed tenancy terms an...
Regulatory Filings and Compliance
Foxtons updates market on total voting rights and share capital
Neutral
Jul 1, 2026
Foxtons Group plc has updated the market on its capital structure, confirming that as of 30 June 2026 it had 319,186,271 ordinary shares in issue, of which 23,408,062 are held in treasury. This leaves 295,778,209 voting rights in the company, refl...
Regulatory Filings and Compliance
Foxtons Updates Market on Total Voting Rights and Share Capital
Neutral
Jun 1, 2026
Foxtons Group plc has confirmed that as of 31 May 2026 its issued share capital stands at 319,186,271 ordinary shares of 1 pence each, with 23,434,080 of those shares held in treasury. As a result, the total number of voting rights currently exerc...
Business Operations and StrategyExecutive/Board Changes
Foxtons Names Farah Buckley to Board and Audit Chair Role
Positive
May 26, 2026
Foxtons Group has appointed Farah Buckley as an independent non-executive director effective 1 June 2026, bringing nearly 25 years of financial services experience in audit, MA and investment solutions across firms such as Hermes GPE, Adveq and Mc...
Executive/Board ChangesRegulatory Filings and Compliance
Foxtons CEO Receives Net Treasury Shares on Vesting of Long-Term Awards
Neutral
May 22, 2026
Foxtons Group has disclosed a share-based remuneration event involving CEO Guy Gittins, following the vesting of awards granted under its 2020 Restricted Share Plan. The awards, relating to ordinary shares of &#163;0.01 each granted in 2022 and 20...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Foxtons AGM backs board but rejects key pre-emption powers
Negative
May 7, 2026
Foxtons Group plc reported that shareholders approved all but two resolutions at its latest Annual General Meeting, including the receipt of accounts, re-election of the board, auditor reappointment and authority for share buybacks, while the fina...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026