Property portal Rightmove has issued a first-quarter trading update forecasting profit growth of up to 5% and revenue growth of 8% to 10% for 2026, maintaining guidance provided in its full-year results.
The company expects underlying operating profit growth of 3% to 5% and earnings per share growth of at least 5% for the current year. Chief Executive Johan Svanstrom stated that trading remains in line with expectations, with the company delivering product-led average revenue per advertiser (ARPA) growth in its core business.
Revenue drivers and membership trends
In February, Rightmove reported annual revenue of £425.1 million for 2025, representing 9% growth. The increase was primarily attributed to estate agents and developers upgrading packages, adding features and increasing product usage rather than membership expansion.
Membership growth in estate agency and new homes sectors stands at approximately 1% for 2026. The company anticipates growth in the agency sector will offset challenges in new homes development, which continues to experience subdued build rates.
Svanstrom noted that membership has increased since year-end and that revenue growth within strategic growth areas remains on track. He added that the company is leveraging its data and network effects to accelerate innovation across its platform.
Market pressures and legal challenges
Despite the positive trading update, Rightmove’s share price has declined 24% over the past six months. The company faces a legal challenge led by former Competition and Markets Authority panel member Jeremy Newman, which seeks to recoup fees on behalf of participating estate agents potentially totalling £1 billion.
The legal action comes as the property market navigates elevated mortgage rates and geopolitical uncertainty. However, stock levels on the platform have reached 11-year highs, suggesting sustained engagement from agents despite broader market headwinds. The trend mirrors patterns seen in other property sectors, where landlords are reassessing their portfolios amid changing market conditions.
Analyst perspective
Anthony Codling, Managing Director at RBC Capital Markets, commented that Rightmove benefits from being removed from direct housing market volatility. He noted that consumer interest in property remains strong regardless of mortgage rates or geopolitical conditions, driving continued traffic to the platform.
Codling observed that agents are increasing spending on Rightmove to attract buyers and sellers in competition with rivals. He described Rightmove as positioned to benefit from artificial intelligence developments, using AI alongside market insight to enhance products and services. RBC Capital Markets maintains an ‘Outperform’ rating on the shares with a price target of 765p.
The company’s performance occurs as broader property market infrastructure faces challenges, including concerns about tribunal system capacity and evolving regulatory frameworks affecting the sector.
