Why invest in Moonpig Group
Moonpig Group combines structurally high profitability and strong cash generation with market leadership and loyal customer cohorts, providing us all the characteristics of a true platform business.
Moonpig Group combines a proven platform for sustainable, double-digit growth with remarkably loyal customer cohorts and market leadership, positioning us to benefit from our markets which are rapidly shifting online.
Moonpig Group has a clear vision to be the Ultimate Gifting Companion with targeted investments in its technology platform. We have all the advantages of standard e-commerce, including convenience and selection. We also have a wealth of personalisation options, which make our product more meaningful to our customers and their loved ones.
We are the category-defining operator, with clear online leadership in cards
Moonpig Group is the market leader in online cards in both the UK and the Netherlands, two of Europe’s largest markets. We hold a 70% share in the UK — nearly six times larger than our nearest competitor — and around 65% in the Netherlands via Greetz.
Our competitive edge lies in data. With 101 million reminders, we have built a defensible data moat that enables us to engage customers at moments of peak purchase intent—something that is extremely difficult for competitors to replicate. Each day, we capture around 70% of all available online card market data, sharpening our algorithms and deepening personalisation. This data advantage compounds over time, reinforcing our lead and widening the gap.
Our brand strength is amplified by scale: millions of recipients experience Moonpig and Greetz cards and gifts each year, turning moments of emotion and connection into brand discovery and advocacy. The result is a powerful combination of data and reach that continues to strengthen our leadership, with UK online market share growing from 60% in 2019 to 70% in 2023.
We operate in a structurally high-growth and underpenetrated market
Our strategy is to focus on the physical greeting cards market (valued at £2bn across the UK, the Netherlands and Ireland) which provides profitable access to the wider £58bn gifting vertical with nil incremental marketing costs.
Online penetration of the cards market remains low, at only 15% of sales by value and around 6% by volume in the UK. Most online card buyers make both online and offline purchases. According to OC&C estimates, the online cards market has the potential to scale nearly fivefold without changes in proposition, driven by a 1.6x opportunity to increase buyer penetration (i.e. increase the number of customers who make some of their card purchases online from its current 37%) and a 3.2x opportunity to increase online purchase frequency from online buyers (i.e. increase the proportion of cards that they purchase online, which is currently on average 3.1 out of 19.1 cards per year).
As online leader, we are driving the market shift to online, with a proposition that we believe is better than offline alternatives. It is superior for convenience through features such as our apps, reminders, easy gift attachment and delivery proposition; and it is superior for personalisation, reflecting our wide card design range and AI-powered creativity features. The ongoing secular market shift from offline to online presents a multi-year opportunity, which Moonpig is ideally positioned to capture and accelerate.
Our platform leverages data, technology and AI to build customer loyalty
Our customer base is highly loyal, with nearly nine tenths of Moonpig and Greetz revenue coming from existing customers. This loyalty stems from a card-first strategy focused on emotionally resonant, annually-repeating buying occasions — 88% of card purchases are tied to annual events such as birthdays, anniversaries, and national celebrations. This drives strong customer retention with new cohorts typically retaining 58% of second-year revenue.
We increase the value of each cohort over time by growing frequency — encouraging card-sending for a broader range of occasions — and by lifting average order value, particularly through gift attachment. These behaviours are enabled by our technology platform, which delivers personalised experiences, smart reminders, and relevant product recommendations. At the core is a powerful data flywheel: every card sent reveals intent, sentiment, and relationship context, feeding richer insight and stronger retention. Our 101 million reminders are a major driver of repeat behaviour, reinforced by subscription benefits for 920,000 Moonpig Plus and Greetz Plus members.
As a result, nine-tenths of Group revenue comes from existing customers, reducing our reliance on paid acquisition and giving high visibility of future growth. This compounding retention model is what underpins our consistently high Adjusted EBITDA margins of over 25%.
We have an asset-light, growth-compounding business model which delivers a structurally superior financial profile
Our model is built on three compounding revenue levers: increasing active customers, rising purchase frequency, and growing average order value — driven especially by greater gift attachment.
This is coupled with high profitability, enabled by strong gross margins and a model that generates nine tenths of Moonpig and Greetz revenue from existing customers. With low dependency on paid acquisition and clear scale advantages, we sustain attractive unit economics over time.
We are structurally asset light, operating with minimal inventory, negative working capital, and modest capex of 4–5% of revenue. Our hybrid fulfilment model blends owned stock, dropship, consignment and digital delivery to maximise flexibility and margin.
The result is strong free cash flow generation, which allows us to reinvest with discipline -pursuing investment to support growth, including continued investment in technology development, customer acquisition and operational automation—at the same time as delivering capital returns to shareholders.
Together, these characteristics underpin our confidence in delivering sustained, long-term growth in total shareholder return.
There is long-term upside potential from self-funded international expansion
Our platform is now extending into new geographies and customer segments through a disciplined, self-funded approach. International growth is driven by a small, agile team that operates independently from the core business. We manage a pooled P&L across Ireland, Australia, and the US, reinvesting gross profit to drive further growth. Our strategy is to leverage Group technology, data, and creative assets for around 90% of each market’s proposition, with only the final 10% adapted to local needs.
Each new market follows a structured path from discovery to product-market fit and, if successful, ultimately to profitable growth. Ireland has reached profitability and, while still small, continues to grow steadily — validating our phased approach. For Australia and the US (both relatively recently launched) we are leveraging Group capabilities while localising only where essential. These markets remain early in their journey, and our small, agile expansion teams are focused on rapid iteration, testing, and continuous evaluation to establish profitable unit economics. Early signals are encouraging and underline the long-term potential of our international strategy.
In parallel, we are continuing to trial our new corporate card-giving proposition that enables businesses to send personalised cards and gifts at scale. Whilst this remains in test, it has potential to open a sizeable adjacent opportunity our core UK market
In both areas, we are pursuing early stage opportunities with material long-term potential, executed in a self-funded, low-risk manner by leveraging existing Group assets and building on the foundation of our proven model.
