**Summary of RWS Holdings PLC Final Results for the Year Ended 30 September 2025**
RWS Holdings PLC, a global AI solutions company, reported its final results for the fiscal year 2025 (FY2025), highlighting a year of strategic transformation and resilience amid market challenges. Key financial and operational highlights include
### **Financial Overview**
**Revenue**£690.1 million, a 4% decline from FY2024 (£718.2 million), with organic constant currency (OCC) revenue broadly flat, reflecting resilience despite market disruption.
**Adjusted EBITDA**£100.8 million, down 29% from FY2024 (£140.7 million).
**Adjusted Profit Before Tax (PBT)**£60.4 million, a 43% decrease from FY2024 (£106.7 million), but with a significant improvement from H1 (£18 million) to H2 (£42 million) due to cost reduction measures.
**Reported Loss Before Tax**£99.7 million, compared to a profit of £60.0 million in FY2024, primarily due to a non-cash goodwill impairment of £88.0 million and exceptional items of £22 million.
**Operational Free Cash Flow**£80.1 million, up 45% from FY2024 (£55.1 million), with a cash conversion rate of 126%.
**Net Debt**£25.4 million, up from £12.9 million in FY2024, including dividend payments of £45.9 million.
### **Dividend**
**Final Dividend**4.6p per share (FY2024: 10.0p), resulting in a total dividend for the year of 7.05p per share (FY2024: 12.45p). The Board recommends rebasing the dividend to align with sustainable profit performance and support investment in AI and M&A strategies.
### **Operational Highlights**
**Language Services**3% OCC growth, driven by AI services and strong APAC performance.
**Regulated Industries**10% OCC decline due to reduced linguistic validation activity.
**Language & Content Technology and IP Services**: Stable on an OCC basis, with SaaS growth.
**AI-Related Revenues**28% of Group revenues (FY2024: 25%).
**SaaS Transition**46% of license revenues from SaaS (FY2024: 39%).
**Client Retention**95% repeat services revenue and NPS score of +46.
### **Strategic Progress**
**Technology and Innovation**Launched Trados as a translation agent in Microsoft Co-pilot, integrated Papercups AI dubbing technology, and partnered with Cohere for automated translation.
**Efficiency**Implemented an efficiency plan, delivering stronger H2 profit performance, and working with Alvarez & Marsal to achieve a 10% productivity improvement over 18 months.
**Operating Model**Launched a new operating model with three strategic segments: Generate, Transform, and Protect.
**Leadership**Strengthened leadership with key appointments, including a Chief Product & Technology Officer and EVP of Go-to-Market.
### **Outlook**
**FY2026**Expects low single-digit OCC revenue growth, moderate margin expansion, and continued strong free cash flow conversion.
**Medium-Term**Anticipates accelerated OCC revenue growth, gradual profitability improvement, and normalization of operational free cash flow to c.65%.
### **Board Changes**
**Chairman and SID**Julie Southern and David Clayton to step down effective 31 December 2025. Andrew Brode and Gordon Stuart will serve as interim Chairman and SID, respectively.
**CFO**Stephen Lamb appointed as CFO, expected to join in Q1 2026.
### **CEO Commentary**
Ben Faes emphasized FY2025 as a pivotal year, marking RWSs transition to a technology-led AI solutions partner. Despite financial challenges, the company demonstrated resilience and executed strategic initiatives to position itself for future growth in the AI-driven market.
### **Conclusion**
RWS Holdings PLC navigated a challenging FY2025 with strategic focus on AI and operational efficiency, setting the stage for future growth and value creation in the evolving global AI landscape.
| Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 690.1 | 718.2 | -4% |
| Adjusted EBITDA | 100.8 | 140.7 | -28% |
| Adjusted Profit Before Tax | 60.4 | 106.7 | -43% |
| Net Debt (excluding lease liabilities) | (25.4) | (12.9) | -£12.5m |
| Net Debt (including lease liabilities) | (47.9) | (40.1) | -£7.8m |
Key Observations:
- Revenue decreased by 4% from £718.2m in 2024 to £690.1m in 2025.
- Adjusted EBITDA decreased by 28% from £140.7m in 2024 to £100.8m in 2025.
- Adjusted Profit Before Tax decreased by 43% from £106.7m in 2024 to £60.4m in 2025.
- Net Debt (excluding lease liabilities) increased from £(12.9)m in 2024 to £(25.4)m in 2025, a change of £(12.5)m.
- Net Debt (including lease liabilities) increased from £(40.1)m in 2024 to £(47.9)m in 2025, a change of £(7.8)m.