Numbers
Figures converted from GBP at historical FX rates — see data/company.json.fx_rates for the rate table. Ratios, margins, and multiples are unitless and unchanged.
The Numbers
Elixirr is a hyper-growth UK-listed challenger consultancy that has compounded revenue at roughly 38% per year since IPO, runs nearly zero capex, converts more than 100% of net income into operating cash, and earns mid-teens returns on equity — yet the market prices it like a slowing professional-services firm, with a forward P/E of about 20x and EV/EBITDA near 11x. The single metric most likely to rerate or derate the stock is the operating margin: it peaked at 26.3% in FY2023 and has compressed by roughly 640 basis points to 19.9% in FY2025 as scaling costs, share-based compensation and integration of the Hypothesis Group acquisition bite. Whether margins stabilise above 20% (consensus thesis) or drift below it (risk case) decides the next 30%.
Snapshot
Share Price ($)
Market Cap ($M)
Revenue FY2025 ($M)
Free Cash Flow ($M)
Analyst Consensus Target ($)
Implied Upside
2025 Revenue Growth
▲ 4,520.0% Fv Upside
Consensus 12-month price target sits at $14.30 (range $13.90–$16.82 across four covering brokers); the stock at $9.85 implies roughly 45% upside before any rerating of the multiple.
Quality scorecard — is this a well-run business?
The one number that should make you pause: intangibles and goodwill are now 78.6% of total assets, up from 52% in FY2021. Elixirr has bought its growth as much as built it. If a future acquisition impairs, book value evaporates fast — equity is mostly goodwill.
The cash machine works: 142% average FCF-to-net-income conversion over five years, capex under 0.2% of revenue, and an unleveraged balance sheet until FY2025. The blemishes are the goodwill build and a 640-basis-point margin slide from the FY2023 peak.
Revenue and earnings power — the post-IPO record
Revenue has scaled roughly 5x in five years — an exceptional pace for any business model, but particularly for a people-business where headcount has to track demand. The operating-margin chart is the more interesting one: peak profitability hit in FY2023, then unwound. The market is now debating whether that was a one-time mix windfall or a structural ceiling Elixirr can climb back toward.
H2-2025 reveals the margin-compression problem in detail: revenue grew 34% year on year but operating income grew only 21%. The operating-leverage thesis is stalling at exactly the moment Elixirr is most aggressively integrating Hypothesis.
Cash generation — are the earnings real?
Cash conversion is the clean story. Trailing five-year FCF / net income averages roughly 142% — a function of (a) working-capital release as deferred consideration washes through, (b) D&A from acquired intangibles flattering accounting income, and (c) genuinely tiny capex. There is essentially no gap between OCF and FCF because Elixirr does not own meaningful PP&E.
The one caveat: in FY2023 the conversion ratio dipped to 97% as receivables built. Elixirr has growing days-sales-outstanding (receivables $37.1M on $201.5M revenue = 67 days, up from 50 in FY2022). Worth watching if it widens further.
Capital allocation — discipline under acquisition mania
Three observations. One, total deployment in FY2025 ($131M across dividends, buybacks, M&A and debt service) exceeded operating cash flow of $44M — Elixirr funded the gap by issuing $80.8M of new debt to acquire Hypothesis Group. Two, buybacks have ramped six-fold from FY2021 levels even as the share count has crept higher, so management is offsetting employee-equity dilution rather than shrinking the float. Three, the dividend has grown every year and now consumes 43% of net income — sustainable but no longer trivial.
Share-based comp has nearly doubled from 1.6% to 3.2% of revenue in three years. Buybacks at this pace barely keep pace with dilution — the FY2025 buyback of $27.9M consumed roughly the same value as the $6.4M of SBC granted plus the equity issued for partner compensation.
Balance sheet — flexibility just narrowed sharply
Elixirr was net-cash for five consecutive years. FY2025 changed that: an $80.8M debt issuance to fund Hypothesis acquisition flipped the balance sheet to net debt of $38M, with leverage at 0.77x EBITDA. That is comfortable in absolute terms — a consultancy generating $44M of FCF can repay it in a year — but the direction of travel matters. Cash on the balance sheet has fallen from $42.9M (FY2021) to $6.8M, leaving little dry powder for the next acquisition without further debt or equity issuance.
The refinancing risk is small ($14.3M current portion); the optionality cost is larger.
Returns on capital — the engine, mid-cycle
ROIC peaked at 18.3% in FY2022 and now sits at 12.9% — a meaningful step-down driven by capital base expansion (acquisitions inflating the denominator) faster than NOPAT growth. ROCE held up better at 18.1%, reflecting that operating profitability per pound of capital employed is intact even as the acquired-goodwill drag hits ROIC.
Valuation — current vs its short history
P/E — Current
▲ 25.3 vs 5y mean
EV/EBITDA — Current
▲ 13.4 vs 5y mean
P/Sales — Current
▲ 3.97 vs 5y mean
The stock has derated meaningfully. P/E is below its six-year average (22.2x vs 25.3x); EV/EBITDA is 14% below its mean; P/Sales is 32% below its mean. The 2021 multiple peak (37x P/E, 22x EV/EBITDA) marked the top — investors paid for hyper-growth at the time of the AIM listing transition. Today, despite materially better cash generation and balance-sheet profile, multiples have compressed. The market is paying the lower of "growth premium" and "consultant multiple" — currently the latter.
Peer comparison — premium for growth, justified
Elixirr's premium to most peers is real but small once you account for growth. Its trailing P/E of 22.2x sits between Accenture (21.4x) and Huron (29.6x), and its EV/EBITDA at 11.5x is below every peer except ICF (which is shrinking). What Elixirr offers that none of these peers can match is 38% trailing revenue CAGR with margins still north of 19%. BAH's headline ROE of 90% is a leverage artefact — its equity is depressed by share buybacks. On underlying capital efficiency, Elixirr sits in the upper quartile.
ELIX is the high-growth outlier on the right. By the simple rule of paying a 1.0x EV/EBITDA point per percentage point of growth (rough industry heuristic), Elixirr at 11.5x EV/EBITDA on 38% growth screens cheapest in the group on PEG-style logic.
Fair value — three scenarios
Bear ($)
Current ($)
Base / Consensus ($)
Bull ($)
The base case is broker consensus: $14.30, implying 45% upside from $9.85. The asymmetry favours the long: bear-case downside is roughly 19% to $7.95 if margin compression accelerates and the multiple rerates to a slow-growth-services 15-16x; bull-case upside is 71% to $16.82 if Hypothesis integrates cleanly and operating margin recovers above 22%.
Closing read
The numbers confirm that Elixirr is what its bull case claims: an asset-light, high-return, cash-generative consultancy growing several times faster than Accenture or FTI at comparable margins and lower multiples. They also contradict the "premium-priced AIM growth stock" narrative — on every multiple, Elixirr now trades at a discount to its own six-year history and sits in the middle of the peer pack despite owning the best growth profile in that pack. What you should watch next year is operating-margin direction in the H1-2026 print and goodwill commentary in the FY2026 audit; if margins re-cross 22% the stock rerates back to the historical 25x P/E and the consensus target is conservative, while a third consecutive year of margin slippage would force the market to treat the growth as bought rather than earned.