Huuuge (HUG) investor relations material

Executive summary

• Q2 2025 revenue was $58.8M, down 7.2% year-over-year, with adjusted EBITDA rising 23.4% to $24M and margin at 41% for the third consecutive quarter above 40%.

• Net profit for Q2 2025 was $17.3M, up 14.5% year-over-year, and net operating cash flow reached $25.3M.

• Direct-to-consumer (D2C) channel hit a record, representing 22% of Q2 sales and rising to 24.6% in August 2025.

• Announced a $120M share buyback for autumn 2025, bringing total shareholder returns to $360M over four years, and introduced a policy to distribute 50–100% of annual free cash flow.

• Revenue for the six months ended June 30, 2025 was $121.2M, with net profit rising to $37.1M from $31.6M a year earlier.

Financial highlights

• Gross profit for Q2 2025 was $44.1M, down 3.5% year-over-year, while gross margin improved to 75% for H1 2025.

• Operating result was $20.8M in Q2 2025, up 26% year-over-year, and H1 operating result increased to $43.2M.

• Net operating cash flow for Q2 2025 was $25.3M, with cash and cash equivalents at $188.6M at period end.

• User acquisition marketing expenses fell to $14.8M from $23.7M year-over-year.

• Direct-to-consumer revenue grew to $25.2M from $13.1M, while third-party platform revenue declined.

Outlook and guidance

• Confident in full-year top line guidance, with several feature releases planned for H2 and marketing spend expected to slightly increase for campaigns.

• User acquisition spend expected to remain in the low teens as a percent of revenue, with operating costs (excluding user acquisition) projected to decline by ~$12M annually.

• Adjusted EBITDA and margin are both expected to increase year-over-year.

• Management continues to monitor geopolitical risks, especially in Israel, but reports no significant impact.

• No formal forward-looking financial guidance provided.