The UK’s largest energy supplier, Octopus Energy, has posted an annual loss, but the headline number hides a massive value-creation story.
The company reported a pre-tax loss of £260.1 million ($350.7 million) for FY2025, a sharp pivot from the £77.6 million profit the previous year.
📉 THE FINANCIALS VS. THE STRATEGY:
1️⃣ The “Good” Loss (Strategic CapEx): The swing to red is driven by heavy investment, not operational failure.
- Revenue: Up 10% to £13.68 billion.
- Global Scale: Customer base hit 10 million globally.
- Spending: Aggressive expansion into Heat Pumps, Solar, EVs, and the tech platform.
2️⃣ The Hidden Gem: Kraken Technologies The core driver of this spending is the AI-driven unit, Kraken.
- New Valuation: $8.65 Billion (following a round led by D1 Capital Partners).
- The Plan: Octopus is fortifying plans to spin this unit off as an independent company.
- Impact: The valuation of the tech arm alone is now rivalling the enterprise value of many legacy utility giants.
💡 ANALYST TAKEAWAY: CEO Greg Jackson is playing the long game. By sacrificing short-term profitability to fund the “services that will define the new era,” Octopus is effectively transitioning from a utility company into a SaaS & Green Tech conglomerate. The $260M loss is essentially the R&D cost for the $8.65B Kraken valuation.
👇 Energy Investors: Is the future of utilities in selling electrons, or licensing the software that manages them?