Rightmove’s latest results land at a moment when the property giant is under unusual scrutiny. Much of the recent share price pressure has come from fears that, in an AI-driven world, people may simply ask ChatGPT to find their ideal home instead of visiting the platform. Yet, in its annual statement, chief executive Johan Svanstrom made one message clear: Rightmove wants to be an AI winner, not a casualty of technological change.
AI tools designed to strengthen its platform
Svanstrom highlighted that Rightmove’s dominance is anchored in its proprietary data and continuous innovation. The company has rolled out conversational search and plans to introduce a dedicated app within ChatGPT “in the near future,” ensuring it remains visible wherever property-seekers begin their journey.
While long-term questions remain about the need for intermediary platforms, the present reality is striking. Nearly 90% of the total time Britons spent browsing property online last year, equivalent to 32,000 years, was on Rightmove. The platform remains the essential marketplace for estate agents, who depend on its audience to complete sales. Around 200 additional branches joined last year, taking membership to 19,272.
Financial momentum remains strong
FY25 results reinforced Rightmove’s resilience. Revenue reached £425 million, up 9% year-on-year, while operating profit also rose 9% to £298 million, keeping margins steady at an impressive 70%. Adjusted EPS climbed 11% to 29p, and total dividends increased 9% to 10.6p. Rightmove ended the year with £42 million in net cash, even after returning £220 million to shareholders through dividends and buybacks, around 7% of its current market cap.
The company reiterated its FY26 guidance of 8–10% revenue growth and confirmed a stronger capital return programme. A £90 million buyback is already committed for the first half of the year, with expected net cash of £20 million by June.
Segment performance showed broad-based strength.
- Agency revenue: £305 million, up 9%, supported by a 6% ARPA increase to £1,621 and a 2% rise in agency membership.
- Optimiser Edge penetration grew to 35%, while 52% of agents adopted incremental products.
- New homes revenue: £75 million, also up 9%, with ARPA rising 7%.
- Ascend package penetration reached 28%, despite launching only last May.
- Strategic growth areas expanded 25% to £29 million, now 7% of group revenue. Mortgages grew 46%, rentals 35%, and commercial real estate 13%.
Adapting to investment costs and market shifts
Rightmove confirmed that its multi-year £60 million investment programme, particularly in AI-driven tools, will temporarily trim margins. Operating margin is expected to ease from 70% to 67% this year, still among the highest in the FTSE 100.
Despite broader market concerns, the company sees no evidence that AI is diverting meaningful traffic away from its platform. It trades at 14x FY26E PE, the lowest in a decade, weighed down by sector sentiment rather than performance.
The outlook
Forecast changes are minimal, aside from adjustments for higher buybacks. The increased repurchase activity lifts FY26E and FY27E EPS forecasts by 2–3%. Target price has been revised from 885p to 745p due to peer de-rating, but the recommendation remains Buy.
Rightmove’s strategy is clear: double down on product development, stay indispensable to estate agents, and integrate AI in ways that enhance, not threaten, its central role. With solid revenues, rising membership, and expanding premium services, the company enters FY26 with momentum and confidence, even as the industry evolves.
