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Rightmove (RTMVY)
OTHER OTC:RTMVY
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Rightmove
(OTC:RTMVY)
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Rating:76Outperform
Price Target:
$13.00
▼(-5.73% Downside)
Action:ReiteratedDate:03/04/26
The score is driven by strong financial performance (durable profitability and cash generation with low leverage) and a constructive earnings outlook supported by continued shareholder returns. These positives are meaningfully offset by weak technicals (price below key moving averages and negative MACD) and guidance indicating near-term margin/profit growth moderation due to higher investment and market headwinds.
Positive Factors
Market-leading portal share
Sustained market share and dominant audience engagement create durable network effects: agents prefer the platform, buyers find more listings, and high direct/organic traffic reduces marketing spend. This entrenched position supports pricing power, customer retention, and long-term competitive moats.
Strong cash generation & returns
Consistent high free cash flow and explicit large shareholder returns demonstrate repeatable cash generation from subscription economics. Reliable FCF funds buybacks, dividends and reinvestment while signaling disciplined capital allocation and low refinancing risk over the medium term.
High profitability and margin resilience
Very high margins reflect scalable, asset-light platform economics and recurring subscription revenues. This cost structure allows revenue growth to convert efficiently into profit and cash, supporting investment in products while preserving healthy long-term return on capital.
Negative Factors
Investment-driven margin moderation
Management's planned step-up in hiring and capitalised investment is deliberate but will temper near-term profit growth and margin expansion versus historical peaks. Sustained higher operating cost base could compress free cash flow conversion until productivity gains materialize.
New Homes supply weakness
Persistent weakness in new-build supply structurally limits a key revenue stream (New Homes) and may keep addressable listings below trend. Prolonged developer underbuilding reduces listing velocity and curbs near-term ARPA and revenue growth from that segment.
Relatively thin capital cushion
Low leverage but a modest equity base and historically high ROE (driven by distributions) mean the balance sheet is asset-light. Combined with aggressive buybacks and planned cash drawdowns, this reduces shock absorption capacity and limits flexibility for larger cyclical shocks.
Rightmove (RTMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.41B
Dividend Yield1.76%
Average Volume (3M)2.50K
Price to Earnings (P/E)15.6
Beta (1Y)0.35
Revenue Growth11.63%
EPS Growth8.12%
CountryUS
Employees900
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.37
Shares Outstanding381,159,180
10 Day Avg. Volume0
30 Day Avg. Volume2,505
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue10.31
Enterprise Value/Gross Profit30.97
Enterprise Value/Ebitda11.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rightmove Business Overview & Revenue Model
Company DescriptionRightmove plc, together with its subsidiaries, operates property portals in the United Kingdom and internationally. It operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms. It also offers tenant references and rent guarantee insurance services to landlords. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms. The Other segment offers overseas and commercial property advertising services; and non-property advertising services that include third party advertising and data services. It serves estate agents, lettings agents, and new homes developers. Rightmove plc was founded in 2000 and is based in Milton Keynes, the United Kingdom.
How the Company Makes MoneyRightmove generates revenue primarily through subscription fees charged to estate agents and property developers for listing properties on its platform. The company offers various subscription packages that provide different levels of visibility and access to features such as enhanced listings and advertising tools. Additionally, Rightmove earns income from advertising revenue, including display ads from third-party businesses targeting homebuyers. The platform's strong market position and large user base attract significant advertising investments. Key partnerships with real estate agencies and developers further enhance its listings and advertising effectiveness, contributing to consistent revenue growth.
Rightmove Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial highlights (9% revenue and profit growth, double-digit EPS growth, robust returns to shareholders, significant product and AI progress, and strong audience engagement). These positives are tempered by near-term headwinds: a weaker H2 2025 driven by budget-related market hesitancy, ongoing New Homes supply weakness, higher operating costs from stepped-up investment and hiring, and a conservative profit growth outlook for 2026 (3%–5%). Strategic growth areas performed strongly (c.25% growth) and management signalled confidence in AI and data-driven product opportunities. Overall, the balance of demonstrated growth, cash returns, and strong platform/AI/product execution outweighs the near-term challenges and planned investment-driven profit moderation.Q4-2025 Updates
Positive Updates
Group Revenue and Profit Growth
Revenue grew 9% year-on-year in 2025; underlying operating profit also grew 9%; underlying EPS increased 11%.
Strong Cash Return to Shareholders
Total of GBP 220 million returned to shareholders in 2025 (GBP 141m share buybacks, GBP 79m dividends), up 21% year-on-year; share buyback program of GBP 90m announced for H1 2026.
Robust Core Business Metrics
Agency revenues rose 9% to GBP 305m; New Homes revenues rose 9% to GBP 75m; membership reached 19,272 (+1% vs Dec 2024) with Agency membership up 2% and Agency retention at 90%.
ARPA and Product-Led Upsell
ARPA increased by GBP 97 to GBP 1,621; 60% of ARPA growth was product-led while 40% came from contract renewals; ARPA guidance for 2026 lifted to GBP 110–120 (blended).
Strategic Growth Areas Outperformance
Strategic growth areas grew 25% to GBP 29.1m; Commercial revenues +13% to GBP 15.3m; Mortgages revenue nearly +50% to GBP 6.8m; Rental Services (Lead to Keys and ancillary) +35%.
Audience Engagement and Platform Usage
Time on site 16.8 billion minutes (second-highest on record); over 85% of traffic from direct and organic channels; app users grew 11%; 69 billion first-party signals across platform.
Operational and Product Delivery
Delivered 6,000+ tech releases in 2025; 31 live strategic AI projects at year-end (up 4 since November); tripled number of data models used in the platform; Rightmove Plus recorded 28 million sessions.
Market Position and Consumer Trust
Long-term portal-time share above 70% (SimilarWeb) and over 80% (Comscore); December 2025 figures at 75% and 89% respectively; third-party agent sentiment surveys reached a record high and show a 1.7x differential vs main competitors.
Capital Efficiency and Cash Generation
Cash conversion ratio of 107% of operating profit; maintained low CapEx (GBP 10m in 2025) with planned CapEx ~GBP 16m in 2026 (<4% of revenue).
Workforce Engagement
Employee engagement strong: 89% of employees describe Rightmove as a great place to work; planned targeted hiring (~100 roles in 2026) focused on data, product and engineering.
Negative Updates
Second-Half Market Weakness
H2 2025 weaker year-on-year driven by autumn budget uncertainty and market hesitancy; guidance expects H1 2026 growth to be lower than full-year due to high comparators and New Homes drag.
New Homes Market Challenges
New Homes developments declined (traditional developments down 113, lowest since Jan 2018); New Homes remains supply-constrained and developers' build rates not expected to materially recover in H1 2026.
Rising Operating Costs and Headcount
Underlying operating costs increased by GBP 11m year-on-year; people costs up GBP 4.6m (+7%) and technology costs up GBP 4m; company plans to add 100+ hires in 2026, and incremental investment post-capitalization of ~GBP 12m is expected.
Moderated Profit Guidance for 2026
Guidance for underlying operating profit growth of only 3%–5% in 2026 with a minimum margin of 67%, reflecting stepped-up investment that will temper near-term margin expansion.
Concentration and Small Non-ARPA Revenue
Non-ARPA Agency revenue streams (Agent Accelerator and certain rental insurance) are growing but remain small (~GBP 3m), complicating simple ARPA×membership forecasting.
Market Perception and Competitive/Regulatory Noise
Press coverage highlights adversarial agent relations and a pending court case (per market commentary), which creates reputational risk despite positive survey metrics.
Platform Experimentation Uncertainty
New AI-led features (conversational search, ChatGPT app) are early-stage: referral traffic from general LLM apps remains under 0.5% and product monetization/long-term conversion impact is not yet proven (early signals include ~3x lead propensity among conversational users but causality is unclear).
Cash Reserve Reduction
Planned buybacks funded by earnings will reduce cash reserves from ~GBP 43m to ~GBP 20m by mid-year, leaving lower short-term cash buffers (company deems GBP 20m sufficient for working capital).
Company Guidance
Rightmove reconfirmed November guidance for 2026: group revenue growth of 8–10% (H1 expected to be below full‑year), Core membership growth of ~1% and blended ARPA growth of £110–£120 (Estate Agency toward the lower end, New Homes higher), Strategic Growth Areas revenue up ~20–30%, and underlying operating profit growth of 3–5% with an underlying margin no lower than 67% (longer‑term profit growth to track revenue). CapEx is guided to c.£16m (<4% of revenue) with increased labour capitalisation and a post‑capitalisation incremental investment of ~£12m in 2026; the company expects to hire over 100 people. Rightmove remains highly cash generative (cash conversion 107% of operating profit) and will continue returning surplus cash: a £90m buyback to 31 July, while last year it returned £220m to shareholders (£141m buybacks, £79m dividends, +21% y/y), announced a final dividend of 6.59p (total 10.64p), reduced share count by 2% (c.40% of issued shares repurchased) and plans to reduce cash balances from ~£43m at Dec to ~£20m by H1.Rightmove Financial Statement Overview
Summary
High-quality fundamentals supported by very strong profitability (historically high EBIT/EBITDA and net margins) and excellent cash generation with strong cash conversion. Low leverage helps, but the thinner equity base and modest margin drift from prior peaks modestly temper the score.Income Statement
Rightmove shows very strong profitability and consistent growth. Annual revenue rose from 2022–2024 (332.6M → 389.9M) and accelerated in 2025 (415.8M; ~36.9% growth). Earnings power is exceptional with EBIT and EBITDA margins consistently in the high-60% to low-70% range (2021–2024) and net profit margins around ~49%–60% (2021–2024). The main watch-out is that margins have trended modestly down from peak levels (net margin eased from ~60% in 2021 to ~49% in 2024), and 2025 margin data is not provided to confirm the latest trajectory.91
Very Positive
Balance Sheet
The balance sheet is conservatively levered with low debt relative to equity (debt-to-equity ~0.08–0.16 from 2021–2024), and total debt remains small in absolute terms (about 6–11M across the period, 7.2M in 2025). However, equity is relatively modest versus the earnings base (very high reported return on equity in 2022–2024), which can indicate a thinner capital cushion and/or significant distributions over time. Total assets have grown (101.8M in 2022 to 128.0M in 2025), but the overall balance sheet strength is more “asset-light” than “fortress,” which slightly tempers the score despite low leverage.72
Positive
Cash Flow
Cash generation is a major strength. Operating cash flow and free cash flow are consistently high and closely track profits, with free cash flow near net income in 2021–2024 (about ~96%–100%). Cash conversion is also supported by strong coverage of debt obligations (operating cash flow relative to debt is ~4x–8x in 2020–2024). Free cash flow growth has been volatile (down in 2020 and roughly flat in 2024), but re-accelerated in 2025 with a strong increase (free cash flow growth ~52%).89
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 415.81M | 389.88M | 364.32M | 332.62M | 304.89M |
| Gross Profit | 0.00 | 389.88M | 364.32M | 332.62M | 304.89M |
| EBITDA | 289.71M | 264.55M | 259.63M | 243.06M | 230.56M |
| Net Income | 212.31M | 192.71M | 199.15M | 195.68M | 183.09M |
Balance Sheet | |||||
| Total Assets | 127.96M | 118.50M | 104.87M | 101.76M | 107.58M |
| Cash, Cash Equivalents and Short-Term Investments | 42.83M | 41.14M | 38.77M | 40.14M | 47.99M |
| Total Debt | 7.17M | 6.16M | 7.40M | 9.57M | 11.01M |
| Total Liabilities | 45.80M | 37.64M | 35.52M | 33.60M | 37.05M |
| Stockholders Equity | 82.15M | 80.86M | 69.36M | 68.16M | 70.53M |
Cash Flow | |||||
| Free Cash Flow | 232.62M | 202.19M | 203.37M | 195.24M | 194.30M |
| Operating Cash Flow | 233.50M | 211.27M | 206.71M | 198.09M | 195.02M |
| Investing Cash Flow | -9.96M | -17.23M | -1.65M | -2.59M | -5.70M |
| Financing Cash Flow | -222.12M | -191.92M | -206.51M | -203.40M | -243.02M |
Rightmove Technical Analysis
Negative
13.79
Price Trends
13.01
Negative
14.49
Negative
17.47
Negative
Market Momentum
-0.44
Negative
37.04
Neutral
74.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RTMVY, the sentiment is Negative. The current price of 13.79 is above the 20-day moving average (MA) of 11.83, above the 50-day MA of 13.01, and below the 200-day MA of 17.47, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 37.04 is Neutral, neither overbought nor oversold. The STOCH value of 74.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RTMVY.
Rightmove Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.41B | 15.59 | 269.74% | 1.76% | 11.63% | 8.12% | |
74 Outperform | $588.96M | 6.22 | 53.19% | ― | 57.83% | 293.63% | |
68 Neutral | $10.87B | 505.22 | 0.47% | ― | 15.17% | 75.90% | |
66 Neutral | $3.09B | 20.83 | 34.90% | ― | 4.21% | ― | |
62 Neutral | $10.87B | 502.00 | 0.47% | ― | 15.17% | 75.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | $22.91B | 178.59 | 0.50% | ― | -87.55% | 336.73% |
* Communication Services Sector Average
RTMVY
Rightmove
11.55
-5.78
-33.35%
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187.70%
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45.23
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Zillow Group Class A
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CARG
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32.45
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EVER
EverQuote
16.38
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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.