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PSO · NYSE · United States · Books: Publishing Or Publishing & Printing
In shortPEARSON PLC is profitable, generates cash and carries moderate debt, with revenue stable (+0.7% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 14.2% | 64/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 9.4% | 57/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 8.7% | 44/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 7.3% | 48/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | – | n/a |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.41× | 89/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 2.26× | 50/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 5.17× | 35/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | – | n/a |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 18.3% | 93/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.96× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 2 of 5 | 33/100 |
| Revenue growth volatility | 6.5% | 87/100 |
| Operating margin volatility | 4.5% | 68/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | -2.3% | 4/100 |
|---|---|---|
| EPS growth, 3-year average | 15.9% | 100/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
GBP millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 3,428 | 3,841 | 3,674 | 3,552 | 3,577 |
| Cost of revenue | 1,747 | 2,046 | 1,839 | 1,741 | 1,717 |
| Gross profit | 1,681 | 1,795 | 1,835 | 1,811 | 1,860 |
| Research & development | 12 | 10 | 8 | 6 | 8 |
| Operating income | 183 | 271 | 498 | 541 | 507 |
| Interest expense | 68 | 71 | 81 | 112 | 98 |
| Pre-tax income | 177 | 323 | 493 | 510 | 457 |
| Income tax | (1) | 79 | 113 | 75 | 121 |
| Net income | 177 | 242 | 378 | 434 | 335 |
| Diluted EPS | £0.23 | £0.33 | £0.53 | £0.64 | £0.51 |
| Diluted shares (millions) | 759 | 742 | 717 | 684 | 660 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
Not computed: a required balance-sheet item is missing.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2025 · Data updated Mar 13, 2026