Manchester United’s Q1 Fiscal 2026: Streamlined Costs Lift Profit Amid Revenue Dip, Full-Year Guidance Maintained
Operating Profit Turns Positive on Leaner Cost Structure
Manchester United’s latest earnings release reveals a first-quarter operating profit of £13.0 million for fiscal 2026—an improvement from a £6.97 million operating loss in the same quarter last year. This return to profitability reflects ongoing cost-saving measures, particularly through operating cost and headcount reduction initiatives launched in the prior year. Adjusted EBITDA also rose 13.5% year-on-year to £26.94 million, further supporting management’s emphasis on long-term organizational transformation and financial discipline.
Revenues Slip Slightly, But Cost Controls Offset Headwinds
While total revenue for the quarter dipped 2% year-on-year to £140.3 million, lower expenses helped the club’s profitability profile. Employee benefit expenses fell by 8.2%, accounting for 52.5% of revenue (improved from 56% last year). Most major revenue streams, such as commercial and broadcasting, saw small declines due to partner mix changes and a lack of European competition participation this quarter, but growth in retail, merchandising, and product licensing partially offset these drops.
| Q1 FY26 (£ million) | Q1 FY25 (£ million) | % Change | |
|---|---|---|---|
| Commercial Revenue | 84.2 | 85.3 | -1.3% |
| Broadcasting Revenue | 29.9 | 31.3 | -4.5% |
| Matchday Revenue | 26.2 | 26.5 | -1.1% |
| Total Revenue | 140.3 | 143.1 | -2.0% |
| Adjusted EBITDA | 26.94 | 23.64 | +13.5% |
| Operating Profit/(Loss) | 13.0 | (6.97) | -- |
Net Loss Driven by Finance Costs and Currency Fluctuations
Despite improved operating performance, the club recorded a net loss of £6.64 million, reversing last year’s £1.33 million profit for the same period. This swing largely stems from increased finance costs (primarily unfavorable foreign exchange impacts on USD borrowings) rather than operational underperformance. Adjusted loss per share widened to (1.48p) from (0.21p).
| Metric | Q1 FY26 | Q1 FY25 |
|---|---|---|
| Net (Loss)/Profit (£ million) | (6.64) | 1.33 |
| Adjusted (Loss) (£ million) | (2.56) | (0.35) |
| Adjusted (Loss) per Share (pence) | (1.48) | (0.21) |
| Net Finance (Cost)/Income (£ million) | (21.46) | 8.60 |
Club Maintains Robust Cash Position, Reiterates FY26 Guidance
Manchester United’s cash and cash equivalents stood at £80.46 million as of 30 September 2025. Net cash outflow from operations was £1.3 million—down from a £13.3 million inflow last year—primarily reflecting higher capital spending on the Carrington facility redevelopment and a shift in seasonal working capital. Borrowings and credit facilities remained stable, supporting ongoing investments.
The company reaffirmed its fiscal 2026 outlook, guiding for full-year revenue between £640 million and £660 million, and adjusted EBITDA in the range of £180 million to £200 million. Management also confirmed continued compliance with all relevant football finance regulations.
Sporting Update and Commercial Partnerships: Building on the Brand
The men’s first team is currently 6th in the Premier League, while the women’s team sits 3rd in the Women’s Super League, having recently qualified for the UEFA Women’s Champions League group stage. Commercially, longstanding partnerships with Canon Medical Systems and Concha y Toro were renewed, providing additional brand stability. Notably, the club’s new e-commerce model drove a double-digit jump in merchandising revenue despite declines elsewhere in commercial income.
| Key Performance Indicator | Q1 FY26 | Q1 FY25 |
|---|---|---|
| Commercial % of Total Revenue | 60.0% | 59.6% |
| Broadcasting % of Total Revenue | 21.3% | 21.9% |
| Matchday % of Total Revenue | 18.7% | 18.5% |
| Employee Benefits % of Revenue | 52.5% | 56.0% |
Key Takeaway: Fiscal Discipline Positions Club for Future Growth
Manchester United’s focus on operational efficiency and strategic cost reductions is beginning to pay dividends, allowing the club to navigate revenue softness and currency volatility while sustaining investment in facilities and teams. The ability to turn an operating profit during a quarter with revenue declines points to improved underlying financial resilience. Investors and fans alike should watch for the next quarters’ ability to capitalize on sporting and commercial momentum, especially with continued participation in domestic and European competitions in sight.
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