Naked Wines (WINE) investor relations material

Executive summary

• FY 2026 results aligned with strategic goals, with adjusted EBITDA at GBP 7.6 million, up 35% year-over-year at constant currency.

• Net cash increased to GBP 33.4 million, up GBP 9 million after significant share buybacks exceeding 10% of share capital.

• SaaS replatforming (Shopify transition) initiated to enhance customer experience and materially reduce costs.

• Customer engagement improved: NPS rose to 77, retention to 76%, and strong Angel/Winemaker connections noted.

• Focus on core differentiators: craft, people, and connection.

Financial highlights

• Revenue was GBP 199.1 million, down 18% year-over-year at constant currency, due to a strategic reduction in inefficient acquisition investment.

• Adjusted EBITDA of GBP 7.6 million, up 35% at constant currency, driven by GBP 11 million in marketing efficiencies and improved gross margin.

• Gross margin improved by 150 basis points to 19.9%.

• Loss before tax of GBP 6.3 million, impacted by over GBP 11 million in adjusting items and inventory liquidation costs.

• Free cash flow was GBP 10.6 million, lower than last year due to maturing inventory unwind.

Outlook and guidance

• FY 2027 revenue guidance: GBP 158 million–GBP 175 million.

• Adjusted EBITDA guidance: GBP 7.6 million–GBP 9 million, potentially reaching medium-term targets early.

• Net cash expected between GBP 34 million–GBP 42 million.

• At least GBP 36 million of the original GBP 45 million medium-term cash generation target remains to be achieved by FY 2030.

• Ongoing focus on profitable customer acquisition, disciplined capital allocation, and monitoring for inorganic opportunities.