Operator: Questions are encouraged, could be submitted any time by the Q&A tab situated in the right-hand corner of your screen. If you would like to ask a question verbally, please just follow the instructions, type a question mark, and we will unmute your mic and enable you to communicate with the team. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, we would like to submit the following poll. I would now like to hand you over the team at PensionBee Group PLC. Good afternoon.
Romi Savova: Good afternoon, and welcome to PensionBee's Q3 2026 results announcement, covering trading for the period ending 30 September 2026. I am Romi Savova, the CEO of PensionBee Group. For those of you who are new to the PensionBee story, we are creating a global leader in the consumer retirement market. We exist to help our customers prepare for and enjoy a happy retirement. We enable them to combine their old retirement accounts into a new online plan. We enable them to make contributions, to invest in line with their objectives, with money managed by the world's largest asset managers, and ultimately to withdraw and spend their retirement savings. Our aspiration is to build a lifetime relationship with our customers, generating predictable and scalable revenue for our company and for our investors.
Romi Savova: Over the third quarter of 2026, we continued to record strong year-on-year growth in assets under administration, revenue, and profitability, as we executed on our long-term strategy. Turning now to our individual country segments. In the United Kingdom, we closed the quarter with assets under administration of GBP 9 billion, representing 29% year-on-year growth, and annual run rate revenue approaching GBP 60 million, representing 26% year-on-year growth. Over the third quarter, we onboarded approximately 10,000 net new invested customers through our effective advertising approach, bringing the total for the year to date to 32,000. New customer growth reflected a healthy balance of brand and organic activity, paid channels and partnerships, including our Born to Retire campaign and our Channel 4 weather sponsorship.
Romi Savova: Over the quarter, we continued to grow the average account size, with the average customer now holding GBP 26,700 with PensionBee, above our guided range of GBP 20,000 to 25,000. Alongside customer and asset growth, we continued to invest in productivity. BeeBot is now resolving over 60% of its live chat volume, up from 50% at the end of the second quarter, and we launched our refreshed app on iOS. Overall, we generated a productivity improvement of 16% year-on-year, with each staff member supporting close to 18,000 invested customers. The UK business was profitable for the quarter and delivered a 14% Adjusted EBITDA margin on a last 12-month basis. Turning to the United States, over the third quarter of 2026, we have been broadening and deepening the foundations for long-term growth.
Romi Savova: In line with our State Street partnership, we continued to build brand awareness and drive customer acquisition in the large US retirement savings market. We expanded our out-of-home advertising campaign from New York and Chicago to seven US markets, with our GBP 1.1 million US marketing investment substantially reimbursed by State Street. We closed the quarter with over 500 US invested customers and assets under administration of $6 million, with early customer cohorts contributing at a rate of 21%, in line with the UK. Over the quarter, we continued to advance our business offering, which we offer to employers, usually through advisor intermediaries and third-party administrators. It is competitively priced, with a high-quality investment portfolio and personalized service for participants. We are building our distribution across this ecosystem.
Romi Savova: Our recordkeeper integration with T. Rowe Price went live in August, and we continued to advance our intermediary relationships. Last quarter, we confirmed that over the medium term, we are targeting 100 intermediary relationships, with each expected to deliver approximately $10 million in recurring annual inflows once fully onboarded. This quarter, we report that we are in the process of onboarding 18 intermediaries, and the majority have already referred their first clients to us. This quarter, we also began onboarding our first Fortune 500 employer client. This week, we launched our online onboarding portal to support a growing volume of plans selecting PensionBee services, and our progress is compounding as relationships established in 2025 generate further client referrals and recurring inflows. At scale, our business line alone is expected to support $1 billion of recurring annual inflows.
Romi Savova: Looking ahead, PensionBee remains focused on converting brand awareness into customer growth across both channels. The company will continue to be disciplined with spend, whilst continuing to invest in product-led growth, enhancing the customer experience through new features and capabilities that drive organic customer acquisition and retention. I would now like to hand over to Christoph Martin, PensionBee Group's CFO, who will cover the financial update.
Christoph Martin: Thank you very much, Romi. Hello, and a warm welcome from myself to everyone. I am pleased to cover the financial section of the Q3 2026 trading update. In Q3, PensionBee had strong financial performance, showcasing the resilience of our business model. In the UK, we delivered 29% year-on-year growth in our AUA base to circa GBP 9 billion, and 26% year-on-year growth in ARR to approximately GBP 60 million. UK Adjusted EBITDA profitability on the last 12 months basis was GBP 7.8 million at 14% margin in comparison to 10% in Q3 2025. At the group level, top-line growth coupled with continuous cost discipline led to group revenue of GBP 14.8 million for Q3, +31% year-on-year growth and a positive Adjusted EBITDA of GBP 2.4 million at 5% margin on a last 12 months basis.
Christoph Martin: Those continuous achievements are further testament of our consistent and reliable execution against our public market guidance, and is ultimately derived from the business core value driver, which are first, predictable and recurring revenue, and second, business scalability. The first value driver is PensionBee's predictable and recurring revenue, which is generated from a durable base of assets under administration and is derived from the assets of existing and new customers. in Q3, we have seen a 29% year-on-year AUA growth to circa GBP 9 billion. The vast majority of our AUA base is derived from existing customers who remain with PensionBee for a long period of time and continue to build up their pension saving with us, resulting in value generation for decades to come.
Christoph Martin: This is because our average customer is around 42 years old, and they are building up their pension saving with PensionBee, which means that cohorts on an underlying value basis, i.e., before any impact of capital markets, are resilient over time. In Q3 2026, we recorded strong underlying KPIs on retention rates and flows, with an invested customer retention rate of above 95% and value retention rate of circa 100%. Next, AUA is also derived from new customers acquired through our proven approach to cost-disciplined new customer acquisition. Over Q3 2026, we added close to 10,000 new invested customers onto our technology platform and 32,000 year-to-date. Joining customers had higher average incoming balances in Q3 this year compared to Q3 last year. For the remainder of the year, we expect the total number of new invested customers to continue growing.
Christoph Martin: In Q3 this year, gross inflows was GBP 426 million at 21% year-on-year growth, and net flows of GBP 220 million, +9% year-on-year growth, underscoring PensionBee's strength, resilience, and predictability. As it is customary in the industry, pension assets are invested in capital markets, and PensionBee benefited from some supportive capital markets in Q3. The compounding AUA base is subsequently converted into our revenue base owing to our resilient gross revenue margin. In Q3 2026, we have seen a revenue margin of 68 basis points, which enabled us to convert the 29% of year-on-year AUA growth into the last 12 months group revenue growth of 36% to GBP 53.6 million. In conclusion, owing to the compounding AUA base and resilient revenue margin, we are deriving predictable and recurring revenue, which is PensionBee's first value driver.
Christoph Martin: The second value driver is PensionBee's business scalability, owing to the controllability of our cost base, which is thereby continuing to decline as a proportion of revenue. For the United Kingdom, the scalability dynamics of predictable and recurring top-line growth coupled with cost discipline led to an improvement in Adjusted EBITDA margin to 14% on the last 12 months basis for Q3 2026 compared to 10% in Q3 2025, an improvement by GBP 3.7 million in Adjusted EBITDA, while simultaneously investing into our growth and increasing the marketing budget by 36% year-on-year on a year-to-date basis. With respect to our guidance framework for PensionBee as a group, we have outlined the short, medium, and long-term targets.
Christoph Martin: In the short to medium term, by year-end 2029, we expect the group to generate revenue of above GBP 100 million and an Adjusted EBITDA margin of circa 20% by year-end 2029, with the UK considerably contributing to those targets. In the long term, by year-end 2034, we expect the group to generate above a quarter of a billion pounds in revenue and an Adjusted EBITDA margin of circa 50% by year-end 2034. Our circa GBP 31 million cash balance puts PensionBee in a strong position to further scale the UK business, as well as invest into the tremendous US market opportunity to continue executing our long-term strategy and delivering on our public market guidance. I would now like to hand back to Romi for concluding remarks.
Romi Savova: Thank you very much, Christoph. We are pleased to close out another successful quarter, and we look forward to hearing the community's questions.
Operator: Fantastic. Thank you very much indeed for your update and presentation. Ladies and gentlemen, please continue to submit your questions using the Q&A tab situated in the top right-hand corner of your screen. Just while the team take a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. As you can see, we've had a number of questions throughout today, so thank you very much indeed for those investors. We'll start with Jude at RBC. Thanks, Jude, for your questions.
Operator: We've got three parts to it, guys, so let's start with the first one. On new customers, gross flows per new customer looks higher sequentially and year-on-year. I know at Q2, you said you were targeting high-value customers. Has that continued into Q3, and should we expect similar pot sizes to be onboarded in 2027?
Romi Savova: Well, we are certainly targeting customers with slightly larger account sizes. Part of the reason for this is that we, of course, target payback on our marketing investment. Part of it is also strategic and organic from the fact that our brand in the United Kingdom, in particular, has really grown up and is attracting a wide variety of customers. We believe that we can serve well at the lower end of the scale, whether that is someone with a GBP 5,000 account all the way up to the million-pound account, and we do certainly see some very large accounts transferring in there. Yes, that remains deliberate. We do want to serve across the board, and you should expect to continue seeing us grow the average account size per customer.
Operator: That is great. Thanks, Romi. Second part to Jude's questions here. Having risen for several quarters, your LTM revenue margin is now stable versus Q2 at 0.68%. Should we expect it to be maintained at this level going forwards?
Christoph Martin: Yeah, I think that is a very good observation. As you can see, the last few quarters, actually, it was stable at that kind of level, at 67 basis points in Q1, 68 in Q2, and 68 in Q3. So we would expect those margins to continue at that level. As said, this is due to a blend effect, a mix effect of the AUA as they are allocated differently across the funds, into funds that are a little bit more actively managed. They come also to us with a slightly higher price point. So when you look at that net revenue margin, that actually, as a proportion of the AUA base, that actually has remained quite consistent. So yes, in short, we would expect that margin to be around that level.
Operator: Thank you. The third part we have got here is, we are now nearing the connection deadline for the Pensions Dashboards Programme. Are you able to offer an update on how you think the program is progressing and any preparations you are making when it finally goes live?
Romi Savova: Yes, we do see the program progressing. We believe that the vast majority of pensions and pension providers are now connected to the system. We certainly are. Ongoing testing with consumers is progressing. We believe that it will still take some time for the program to go live. For those who are not familiar with the ins and outs of the Pensions Dashboards Programme, the government has committed to giving a six-month notice window, and that will trigger the readiness point for pension providers to expect the dashboard to be available through the GOV.UK website. We have not yet had that starting gun launching, and we can most definitively say that it will be at least another six months.
Romi Savova: We do believe that the launch point will be made very public, because the government will want consumers to be aware that this is a service that is now being offered, and importantly, for pension providers to prepare themselves for that service being offered. I would say that relative to other pension providers, we are in the fortunate position of our data being very clean and very available, and therefore, we do expect to see good matching rates on the dashboard. At the same time, we are very much looking forward to many of our customers and potential customers seeing pensions that they know they have but have lost track of, or pensions they do not know they have at all, and using that as a springboard for consolidation.
Operator: Great. Thank you. Another question we have got here. With the US opportunity being substantial, how do you look to bridge that gap from the USD 6 million AUA to the USD 1 billion target?
Romi Savova: This is an excellent question, and I can certainly comment on the progression of the US build-out. The USD 1 billion target is a very important milestone for any business like ours, and we also see the potential to build USD 1 billion of recurring net inflows. If I just focus on our B2B channel, which we have spoken quite a lot about over the last couple of quarters, the plan there is really to keep onboarding intermediaries. Our business offering to employers essentially enables employers to move old accounts from former participants out of their 401(k) plan and into PensionBee IRAs. The smaller accounts under USD 7,000, those are automatic rollovers, so that is done automatically, and the employer simply gives notice.
Romi Savova: Employers are also using us for accounts that are worth over USD 7,000, where we market to their former employees. Finally, when an employer makes an acquisition or is themselves acquired, that entire 401(k) plan can terminate, and the entire 401(k) plan can move into IRAs. That is a very substantial opportunity. We have quantified that the small balance rollovers, those kind of generate around $4 billion worth of annual inflows across the market. The terminations are probably closer to $55 billion. Voluntary rollovers is probably a trillion-dollar annual rollover market in and of itself. Clearly the market opportunity is very substantial, as you have mentioned. Our work with employers is predominantly generated by intermediaries. These intermediaries would be an advisor. In some cases, they are a third-party administrator. In other cases, they are a recordkeeper with a panel offering.
Romi Savova: This quarter, we disclosed some progress on our target of reaching 100 intermediaries, noting that we are currently onboarding 18 of those. Each intermediary, we think, has around 50 401(k) plans that they service, potentially more. As we are onboarding those intermediaries, we are being added as the small balance rollover provider for each one of their clients. We can absolutely see each intermediary onboarding us for one employer, and then the second, third, fourth, and so on. Of course, every single year, those employers will conduct a force-out exercise, meaning they remove the accounts of employees who have left. Again, the under $7,000 are automatically rolled over. The over $7,000, there is a marketing exercise that goes on. Either way, this becomes annual recurring business as each one of the employers onboards.
Romi Savova: The route for getting from where we are today to the billion dollars of total AUA, but also billion dollars of net recurring inflows, really relies on onboarding those 100 intermediaries who we believe, through their entire client book, can generate $10 million worth of annual net inflows, with that $10 million consisting of small balance rollovers, voluntary rollovers, and also plan terminations. I hope that gives you a bit more context on our B2B line.
Romi Savova: On our B2C line, we continue to advertise very successfully at the top end of the funnel, and we continue to work on the automations and the conversion activities for actually moving the funds from recordkeepers here in the United States, and building out those connections in the same way that we built them out over a long period of time in the UK. I will stop there.
Operator: Fantastic. Thank you very much indeed. A question from William. Of these 18 intermediaries, what is the average pot size of each employer's IRA pot they are working with?
Romi Savova: Of each intermediary? Each intermediary would be an advisor or a third-party administrator. Each advisor or third-party administrator will have, we think, at least 50 401 clients themselves, but some of them have thousands. If you are a third-party administrator, you might be administering 10,000 401 plans. What then really kind of drives the unit economics there is how big is the 401 plan, and that really depends on the size of the intermediary. 401 plans can range all the way from $1 million, all the way up to 35 or $40 billion. There is a very, very broad range. Of course, let us apply the laws of averages, and we have made a fairly conservative assumption that each intermediary will have on average 50 401 clients. Within those 401s, there will be different account sizes.
Romi Savova: The smaller ones will, of course, by definition, be under $7,000. The larger ones will, by definition, be above $7,000. We see that the median very much persists around here, so the median account that we see coming through the door is probably around $25,000. You can apply the laws on average there. I would say that an important component is the termination component, and that is a very different setup in the United States. When a company is bought, they can terminate the whole 401 plan. That can be anywhere from $1 million to $250 million at the top end of what we have seen. Of course, those are some of the more lucrative opportunities that we look at from an asset perspective. I hope that gives you some context on the averages.
Operator: Yeah, thank you. William just put a follow-up really saying, "I am asking about the average potential pot sizes of each of the 50," which I think you did cover off there, Romi, just in case there is anything else you want to add to that. If not, we have got another question here just on, how are the US partnerships performing in your view?
Romi Savova: The US partnerships in general?
Operator: Yes.
Romi Savova: I think the partnerships are performing well. We believe that when we see intermediaries, and I assume that is what you mean by partnerships, when we see intermediaries referring multiple clients to us, so multiple plans, multiple 401(k) plans, that we are delivering a good service. We believe that the intermediaries in particular care very much about delivering a good service to their plan sponsor clients. What I mean by good service is, of course, the costs. It is the investment performance, and it is also the participant experience. Within the market, that is certainly how we differentiate ourselves. Our costs are very competitive relative to incumbents.
Romi Savova: We have a research piece out in the market at the moment, which has been covered by USA Today today, that really shows that the service really matters, and what you get from these small balance rollovers can really make a difference to participant accounts over a 10, 20, 30-year period. We believe that advisors and third-party administrators are very motivated to give those sponsors a good service. So, the fact that we see them onboarding more and more clients means that they are satisfied. We also think that builds a good word-of-mouth effect.
Romi Savova: If you have one advisor that is satisfied with our service or one TPA, third-party administrator, that is satisfied with our service, they will refer us to their peers, and we definitely see some of that effect taking hold because we have moved from a starting point to having 18 intermediaries that are in the process of being onboarded.
Operator: Fantastic. Thank you. Steven has raised his hand, so I am taking that you want to ask a question. I am just going to request control of your mic there, Steven. Just sent that request to you now. If you can just accept that, we can just open up your mic and then take your question. I see, Steven, you just declined that. I can see you have got a raised hand. If you do want to pop a question in, then please do push that through. Just wait for a couple of moments and see if that does come on. No, your hand is down, so that is okay. Just seeing if any other questions come through. Let me just have a look at those now.
Operator: William, I am not sure if you have got a couple more questions to come through. We have had two from you. If you have got any more, please do push those through. Just give you a couple of moments to do that, if you have got a couple more questions. Just perfect. I can see they have come through. Thank you, William. Right, two parts to William's questions. First part reads, "Do you expect Q4 customer growth and net flows to be higher or lower than Q3? Normally, seasonality points to the figures being lower, but I wonder if the benefit of your higher marketing spend could offset this.
Christoph Martin: Yeah, happy to take this one. Very good observation, actually, William, around the marketing spend. I think we have been very clear in the past that we see now, as we have achieved profitable growth, that we actually take that incremental profit and reinvest it back into the company in the UK to drive future growth. As you have observed, when you look at the year-to-date marketing numbers, which have been about GBP 14 million, close to GBP 14 million compared to GBP 10 million last year, so a 36% increase. But also, when you just look at the Q3 quarter alone, it is GBP 4.4 million. So that is almost the highest marketing, or it is actually the highest marketing amount that we invested pretty much since the IPO.
Christoph Martin: What is really clear is that we are reinvesting into growth and growing the UK business. In short, I think I would concur with your observation. We continue to invest, and therefore Q3, I think we will continue to see strong growth across new Invested Customers as well as net flows. Then we also mentioned that publicly in the past that we will probably expect the marketing budget to potentially continue to grow, given that we are now reinvesting in the growth of the business. I hope that answers the question.
Operator: Thanks, Christoph. Second part to William's question, "You had net outflows from existing customers in Q3. Why was this? My back-of-the-envelope is that you had a spike in the case size exiting. If it was more a spike in the number of customers leaving, can you please provide some clarity on the gross net customer components of the +32 million net, please, 337,000?
Christoph Martin: Yeah, I think overall, that ties really to our high retention rate. So we have a customer retention rate of greater than 95%, but on a value retention rate around 100%. The flows statistics you referred to in Q3 is at the same level roughly as Q4 last year, and it can be split roughly 50% drawdown, 50% attrition. With regards to your question around gross and net customer, that can be very conveniently then approximated with using the volume or customer retention rate of 95% plus or less than 5% attrition, applying that to the average Invested Customer base to back out the attrition, and then you should get to your gross numbers. That would be a methodology that would hold true for the first three quarters as well. So I hope that helps with the mathematical part of the question.
Operator: Fantastic. Thank you, Christoph. That concludes the questions we have come through, and of course, if we do get any further questions that do come through, the team will be able to review those and be able to publish responses on the Investor Meet Company platform. Just before we redirect investors to provide you with their feedback, I know it is particularly important to you and the team. Romi, if I could just ask you for a few closing comments, please.
Romi Savova: Yeah, absolutely. We want to thank everyone for joining the call today. We continue to make great progress in both the United Kingdom and also the United States, and we are very pleased to keep engaging with investors in the broader community around that progress. So, thanks for joining us today.
Operator: Fantastic. Thank you indeed for updating investors today. Can I please ask investors not to close the session? You should be automatically redirected to provide your feedback, in order that the management can better understand your views and expectations. So it will only take a few moments to complete, and those greatly valued by the company. On behalf of the management team at PensionBee Group PLC, we would like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.
