ii view: Rightmove restarts share buybacks as AI spend gathers pace
Previously subject to a takeover approach and with its shares down 30% over the last year. Buy, sell, or hold?
27th February 2026 12:21
by Keith Bowman from interactive investor
Full-year results to 31 December
- Revenue up 9% to £425 million
- Adjusted operating profit up 9% to £298 million
- Final dividend of 6.59p per share
- Total 2025 dividend up 9% to 10.64p per share
Guidance:
- Continues to expect full-year 2026 revenue growth of 8-10%
- Continues to expect full-year 2026 adjusted operating profit growth of 3-5%
Chief executive Johan Svanstrom said:
“These strong business results demonstrate the high quality and sustained usage of the Rightmove
platform in all property market cycles. Looking ahead, we will introduce a Rightmove app-in-GPT on
OpenAI in the near future.
“We have entered 2026 with confidence in our performance, leading with valued and specialised
services that scale and deliver strong returns. We continue to execute our strategy to develop the
leading digital ecosystem for the entire home-moving experience, powered by exceptional data and
network effects.”
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ii round-up:
Property advertising company Rightmove (LSE:RMV) today raised shareholder returns with a new £90 million share buyback during the first half of 2026, while increasing investment in AI technologies.
A one-quarter increase in targeted growth areas such as mortgages and rental services helped 2025 sales and profits climb 9% to £425 million and £298 million respectively. A final dividend of 6.59p per share takes the total 2025 dividend up 9% to 10.64p per share.
Rightmove continues to expect 2026 sales to grow by up to 10%, although with forecast profit growth of up to 5%, slowed by greater spending.
Shares in the FTSE 100 company rose 4% in UK trading having fallen by a fifth in 2025 given increased AI outlook uncertainty and economic concerns. The FTSE 100 index rose by just over a fifth last year, while online marketer Autotrader Group (LSE:AUTO) fell by a quarter.
Property professionals, such as estate agents, lettings agents and new home builders, pay Rightmove a subscription fee to advertise their properties on its website.
Average Revenue per Advertiser rose 6% in 2025 to £1,621, helped by new AI-enabled estate agent valuations. Time spent by consumers on the website stayed at record market shares.
Rightmove AI initiatives include transforming its app and AI-powered search capabilities as well as upgrading the back-end infrastructure. Alphabet’s Google cloud is now aiding data and AI capabilities.
Given AI investments, Rightmove management now holds ambition for revenue growth of 10% or more from 2030 and onwards with growth in adjusted operating profit of 12% and over.
Rightmove’s AGM is scheduled for 8 May.
ii view:
Rightmove benefits from four petabytes (PB) of historic and live data, all stored on its unified
and cloud enabled data platform. Employee numbers total less than 1,000. Agency related services generated most sales in 2025 at 72%, followed by new home developer demand at 18%. Other businesses such as commercial property, data services, overseas listings, and third-party advertising accounted for the balance of 10%.
For investors, required investment costs in AI are expected to hinder profit growth, at least near term. The exact impact of AI and the benefits it could provide rivals are not to be forgotten. An ongoing global trade war raising prices and potentially keeping interest rates elevated cannot be dismissed, while a forecast dividend yield of under 3% compares to yields above 5% at British Land Co (LSE:BLND) and Land Securities Group (LSE:LAND), the property owners and real estate investment trusts (REITs).
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More favourably, investment in AI is being made for the benefit of the medium to longer term. A new £90 million share buyback programme, funded by both surplus cash and operational cash generation, increases shareholder returns into 2026. Sales for areas of growth away from the core business, such as mortgages, grew the most for this latest year at 11%, while a takeover approach by Australian firm REA Group in 2024 is not to be forgotten.
For now, Rightmove’s dominant market position will make it of interest to investors. And while more cautious investors may decide to await evidence of AI generated success before buying, those with an appetite for risk have been speculating that the AI-driven sell-off is overdone.
Positives:
- Strong market position
- Diversity of customers
Negatives:
- Uncertain economic outlook
- Costs generally remain elevated
The average rating of stock market analysts:
Hold
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