PSONYSEBooks: Publishing or Publishing & PrintingFiscal year ends December 31Also trades as PSORF
PEARSON PLC
Financials through fiscal 2025, year ended Dec 31, 2025Last filing: 20-F on Mar 13, 2026
$18.19−0.05 (-0.27%)
Close on Oct 19, 2026
Margins
Share of revenue, fiscal years 2015 to 2025
Gross margin
52.0%+4.0 pts over 5 years
Operating margin
14.2%+2.1 pts over 5 years
Net margin
9.4%−0.3 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +0.7% | -2.3% | +1.0% | -2.2% | |
| Gross profit | +2.7% | +1.2% | +2.7% | -2.9% | |
| Operating income | -6.3% | +23.2% | +4.3% | – | |
| Net income | -22.8% | +11.4% | +0.3% | -8.6% | |
| EPS, diluted | -20.2% | +15.9% | -59.0% | -6.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 7.8% | 8.7% | |
| Return on assets | -21.5% | 4.4% | 5.0% | |
| Current ratio | 2.12 | – | – | |
| Debt to equity | 0.57 | 0.40 | 0.41 | |
| Interest coverage | -25.7× | 3.8× | 5.2× | |
| Inventory turnover | – | 11.9× | 24.5× | |
| Capex to revenue | 1.9% | 1.6% | – | |
| Diluted shares | 815M | 755M | 660M |
Cash use needs five years of cash flow figures
Pearson does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin9.4%
×Asset turnover0.54×
×Equity multiplier1.74×
=Return on equity, FY20258.7%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 9.4% | 0.54× | 1.74× | 8.7% |
| FY2024 | 12.2% | 0.52× | 1.70× | 10.8% |
| FY2023 | 10.3% | 0.52× | 1.68× | 9.0% |
| FY2022 | 6.3% | 0.52× | 1.69× | 5.6% |
| FY2021 | 5.2% | 0.46× | 1.76× | 4.2% |
| FY2020 | 9.7% | 0.45× | 1.79× | 7.8% |
| FY2019 | 6.8% | 0.50× | 1.76× | 6.0% |
| FY2018 | 14.2% | 0.52× | 1.85× | 13.8% |
| FY2017 | 9.0% | 0.50× | 2.15× | 9.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
5of 8 tests passed in fiscal 2025. Some tests lack the figures they need.
- ProfitableNet income above zero£335.00M
- Cash generatingOperating cash flow above zero£656.00M
- Return on assets improvedROA up on the prior year6.5% → 4.9%
- Earnings backed by cashOperating cash flow above net income£656.00M vs £335.00M
- Less leverageLong-term debt to assets fell16.8% → 22.0%
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise684M → 660M
- Gross margin improvedGross margin up on the prior year50.99% → 52.00%
- More efficientAsset turnover rose0.53 → 0.52