Despite growing revenues, UK energy company Octopus Energy saw profits shrink significantly in 2025, according to yearly results published on Tuesday.
In the financial year ending 30 April 2025, Octopus recorded £13.7bn in revenues across the company, a 10% increase on the previous year (£12.4bn). It also reported a net loss of £255m, however, meaning the company is back in the red after two years of profitability.
This was largely due to a combination of one-off external events, said the company, including final costs linked to the acquisition of collapsed UK startup Bulb Energy in 2022 as well as the last settlement for the UK government’s energy price guarantee (EPG) scheme.
“The latter two exceptional, non-recurring items amounted to £144 million,” said CFO Stuart Jackson in a statement. “While headline profitability was affected, the underlying performance across the group is robust.”
When adjusted for these events, Octopus’s underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to £90m, Jackson said. That remains a 31% drop on 2024, when the company posted an EBITDA of £290m.
The company said this was partly due to an “exceptionally warm spring” in 2025 in the UK and abroad, which reduced consumption and had an estimated impact of £103m.
Octopus also saw staff costs increase as it grew its workforce by 34% to 11,400 employees globally.
Octopus Energy and Kraken
The business’s revenue growth was largely driven by an increase in Octopus’s customer base. The company now serves nearly 10m customers in the UK, Germany, France, Spain, Italy, the US and New Zealand, meaning it grew its user base by 25% compared to 2024, when it recorded 7.95m customers.
Octopus’s largest market is the UK, where it serves 7.6m homes and holds a 24% market share.
The 2025 results cover both Octopus Energy, which supplies gas and electricity to customers in the UK and six other countries, and its fast-growing tech arm Kraken, which licenses software to other energy companies.
The company said in 2025 Kraken doubled its contracted annual recurring revenue to £422m.
On Monday Octopus announced it is set to spin off Kraken in the next year. The company has reached a deal to sell $1bn-worth of shares in Kraken at an $8.65bn valuation.
Octopus, which has raised over $2bn from investors including Lightrock, Al Gore’s Generation Investment Management and Galvanize Climate Solutions, last reported a $9bn valuation in 2024.
