Online grocer targets positive cash flow next year but execution risks weigh on sentiment Shares in Ocado Group PLC (LSE:OCDO), the online grocery technology group, fell 9.5% to 212.68p in early trading as investors looked past a sharp rise in earnings and focused on execution risks surrounding the company's cash flow targets. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 59% to £178 million as group revenue climbed 12.1% to £1.4 billion in the year to November 2025.
Ocado , the British technology and online grocery group, plans to cut about 1,000 jobs as it targets savings of 150 million pounds ($203 million) in technology and support costs, its boss said on Thursday.
Ocado Group PLC said it is on track to turn cash flow positive next year after a strong rise in earnings from its technology arm and as it cuts a "significant" number of jobs. Adjusted earnings before interest, tax, depreciation and amortisation increased 59% to £178 million as group revenue swelled 12.1% to £1.4 billion in the 52 weeks to 30 November 2025.
Ocado , the British technology and online grocery group, said on Thursday it was targeting becoming cash flow positive in the second half of 2026 as it reported a jump in underlying earnings for 2025.
British technology and online grocery group Ocado plans to cut up to 1,000 jobs, or roughly 5% of its workforce, as part of a renewed cost-cutting drive following a difficult year for its automated warehouse business, the Sunday Times reported.
Big grocers Tesco and Sainsbury's showed their strength in January, while some listed rivals saw sales growth slow in the new year, as price inflation eased to its lowest in nine months. Grocery price inflation rose 4.0% in January, down from 4.3% in December and 4.7% in October and November, to a level not seen since April last year, as supermarkets ramped up promotioins, according to the latest data from Worldpanel by Numerator.
Ocado Group PLC (LSE:OCDO) shares are down 10% as a second overseas supermarket client, Sobeys in Canada, has announced it will close one of its robot-run warehouses and keep its Vancouver site on pause. This follows US customer Kroger's announcement to close three customer fulfilment centres at the end of last year.
OCADO GROUP (OCDDY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Here is how OCADO GROUP (OCDDY) and Signet (SIG) have performed compared to their sector so far this year.
Ocado Group PLC (LSE:OCDO) has been included on JP Morgan's Positive Catalyst Watch ahead of the digital grocer's results, due on 26 February, with the American bank anticipating improving trading conditions. Analyst Marcus Diebel said share price volatility in 2025 has been pronounced but he sees “several drivers for operational stability”.
British online supermarket Ocado and discounter Lidl recorded the highest sales growth in the Christmas quarter, while market leader Tesco and number two Sainsbury's also delivered solid performances, industry data showed on Tuesday.
Ocado Group is set to offer its grocery technology to more potential customers after its mutual exclusivity arrangements ended with retailers in most of the markets in which it operates, including Kroger in the United States.