PensionBee looking on track
Strong customer growth, efficient marketing spend, US close to being 'fully live'
TheInvestors.blog is not investment advice. Please read the disclaimer here.
This is a short ‘what I expected’ versus ‘what was delivered’ on PensionBee’s Q3 trading update released on 22 October 2025. In my post on 5th October 2025,
I wrote..
This is now two stories. An existing (but still relatively early-stage) UK business, and a US business in its infancy.
For the UK, I’ll be looking for solid customer number and AUM growth. PensionBee added 10k new ‘invested customers’ in Q1 and 11k in Q2 on £7.6m of marketing spend over H1. Total invested customers were 286k at the end of Q2. So keep a lookout for customer number growth in the context of marketing spend. It should be closing in on 300k invested customers.
Net flows were £214m in Q1 and £209m in Q2 (around 14-15% annualised growth rate from net flows) so I’d like to see that momentum at least maintained. And PensionBee should have a stronger market tailwind than most wealth managers as its portfolios seem to have a higher equities allocation (a younger demographic with a long-term investment horizon for their pension pots).
For the US, we’re waiting for the first set of customer and AUA numbers to come in.
I’m less obsessed about the target of breakeven adjusted-EBITDA at this stage of growth. I’d like to see strong growth prioritised.
This is what was delivered:
Invested Customers
In the UK, up 11k in Q3 to 297k, higher than Q1 and the same as Q2. This was on marketing spend of £2.6m in the quarter, lower than the £3.8m quarterly average in H1. A good quarter for customer numbers. PensionBee said:
“We expect this momentum to carry through the fourth quarter and beyond.”
Net flows
Net flows were £201m, versus £214m in Q1 and £209m in Q2. Good, consistent but perhaps a touch disappointing give the strong growth in customer numbers. I’ll be looking for this to pick up a bit in the coming quarters.
In their presentation CFO Christoph Martin said that the age profile of new customers is slightly down at 39.5 average age (that was planned as part of the marketing strategy), with an average incoming pot size of £15.5k. Last year the average age was 40.5 with an average incoming pot of £17.5k. Two years ago the average age was ‘early-39s’ with an average pot size of £14.5k. So the lower age profile probably explains the slightly lower flows compared to new customers added.
AUA growth from markets
Very strong markets in the quarter boosted AUM by +£488m (+7.8%). That would be better than most expected.
Total AUA
Solid flows and very strong markets saw AUM +10.9% in the quarter to £6.98bn (end Q2: £6.30bn). That keeps the scale-train running.
Revenue
Up 32% year on year to £11.3m for Q3 (Q3 24: £8.6m). Excellent. Annual run rate revenue increased 35% to £46.4m Q3 25 (Q3 24 £34.4m).
Adjusted EBITDA
Just positive in the quarter at £1.3m. PensionBee UK achieved £2.4m (Q3 24: £1.5m). As I’ve said before though, this is very much dependent on marketing spend deployed. A good sign that scale benefits are still being achieved though is a 19% productivity improvement (Q3 25: 1,555 Invested Customers per staff member vs. Q3 2024: 1,305).
USA
It’s now getting very close to being ‘fully live’. Live testing is completed, which attracted $2m of AUA. PensionBee also said: “During the testing process, the Company attracted sizable accounts multiple times above its target of $50,000, indicating the potential for rapid asset accumulation as brand awareness grows.”
It launched its first US brand campaign featuring initial customers across major cities such as New York, Chicago and Seattle.
Longer term ambitions
PensionBee’s ambitions remain high.
Revenue Objectives:
Reach: >£100m of Group Revenue in the short to medium term (by year end 2029).
Exceed £250m of Group Revenue in the longer term (by year end 2034).
Profitability Objectives:
Reach c.20% Group Adjusted EBITDA Margin in the short to medium term (by year end 2029).
Reach c.50% Group Adjusted EBITDA Margin in the longer term (by year end 2034).
On balance, PensionBee looks on track to me, with markets providing an additional boost in the quarter.
Be sure to subscribe to TheInvestors.blog below to keep up to date with the UK asset and wealth management sectors.
And if you think TheInvestors.blog is worth telling others about and sharing, I’d be most grateful if you do.
Disclosure: At the time of writing, Paul Bryant was a shareholder in PensionBee.
I agree with this. Thanks Paul