Edison issues report on HgT (HGT)

London, UK, 13 March 2026

Edison issues report on HgT (HGT)

Edison issues report on HgT (LSE: HGT)

HgT’s final FY25 results confirmed the strong underlying last-12-month (LTM) growth in revenue and EBITDA across its portfolio, with final figures at 17% and 19%, respectively (of which 11% and 17% was organic, respectively). This was partly offset by lower comparable multiples and higher net debt across the portfolio used to finance bolt-on M&A, leading to a 4.0% NAV total return (TR) in FY25. HgT’s portfolio companies maintain a healthy average EBITDA margin of 33%, which would be even higher if not for the extensive growth investments into AI capabilities, supported by Hg’s (HgT’s investment manager) well-staffed, dedicated AI product incubator (Hg Catalyst). There are more than 1,600 generative AI (GenAI) projects live across HgT’s portfolio, and over 40 agentic products and features have already been launched. Despite the sustained earnings momentum and encouraging initial results of AI adoption, HgT’s shares have been caught up in the recent indiscriminate sell-off of software stocks and now trade at a 27% discount to NAV (vs 10-year average of 8%), which implies an average EV to next-12-months EBITDA multiple of c 15x across HgT’s portfolio, according to Hg.

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