FY25 results highlight another year of strong execution, underlining the quality of XP Factory’s two concepts and management’s operational discipline. There are four key points: 1) Adjusted EBITDA grew 29% YoY and beat our forecast by 3%, driven by stronger site-level margins; 2) Net debt was higher than expected due to working capital timing and front-loaded capex; 3) No new FY26 trading disclosure beyond the soft Q1/improving Q2 flagged in August; 4) No EBITDA forecast changes, with margin upgrades and cost-saving offsetting lower revenue. We continue to like XPF for its market leadership in the structurally attractive UK experiential leisure sector, underpinned by a high-return site model and increasing cash generation. At just 3x EV/EBITDA and a 28% FCF yield, the valuation remains misaligned with fundamentals and if shares continue to languish at these levels, XP could become vulnerable to a takeover.