RentGuarantor - shares hit a record high on upgraded guidance
RentGuarantor (RGG), the provider of rent guarantee services, has announced an upbeat trading update covering the nine months ended 30th September 2026 and revealed a material upgrade to expectations for FY2026. Investors have reacted well to the news, sending the shares up by 18.3% to a record high of 113p.
The business
RentGuarantor provides a rent guarantee service to tenants wishing to rent property in the UK (excluding Northern Ireland) from the private rental sector. It is an online service, with applications managed on a secure and bespoke digital platform designed and built by the company. The goal is to make the process as simple as possible, with applications only taking a few minutes and RentGuarantor seeking to complete the application on the same day.
RentGuarantor supplies its service to the whole of the market: students, both from the UK and overseas; employed people; and people on benefits, including Universal Credit. This ensures that everyone has the opportunity to live in their dream rental home.
Revenues are earned from rental guarantor contracts and application fees, with costs arising when a claim is made on a contract. RentGuarantor is obliged to pay the landlord on any rent arrears, but to mitigate the impact of this it takes out insurance.
With over 5.4 million households privately renting in the UK, the company expects that demand for its services will expand, underpinned by recent regulatory changes under the Renters' Rights Act. In August last year, RentGuarantor moved the trading of its shares to the AIM market from the Aquis Stock Exchange.
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Trading performance
Revenue in the month of September 2026 was £4.5 million, up from just £0.24 million in September last year. To put that in context, September 2026 revenues were higher than the £2.39 million posted for the whole of 2025. Revenue for FY2026 to date is now £13 million, up c.656% from £1.72 million in the corresponding period in 2025.
Growth is said to have accelerated significantly during the third quarter, and especially in late September during the prime student letting season. Applications in the year to date have increased by 208% to 21,747, while contracts have increased by 395% to 11,608. Average contract value also increased by 53% to £1,119. Despite the substantial growth in contracts, the claims ratio remains in line with expectations and the company’s risk policy.
The significant growth in contract volumes, combined with the scalability of the operating model, has driven a substantial improvement in profitability. EBITDA for the nine months to end-September was £5.85 million, compared to a loss of £0.19 million for the same period in 2025 (excluding costs associated with the admission to AIM). Net profits increased to £5.93 million, from a net loss of £0.48 million (excluding AIM costs) for the corresponding period in 2025.
RentGuarantor share price chart since AIM IPO
Outlook
Revenue, EBITDA and net profit for FY2026 are now expected to be materially above current market expectations. Those expectations are for £14-£15.1 million of revenue, adjusted EBITDA of £4.1-£4.9 million, and net profits of £4-£4.6 million.
Management’s new expectations for FY2026 are for revenues to be in excess of £19 million and net profit in excess of £9 million. The company is also encouraged by the outlook for FY2027.
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Disclosures
RentGuarantor is not a corporate client of Optimo Research Ltd.
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