Shelly Group (SLYG) investor relations material

Executive summary

• Q1 2026 results exceeded internal targets, with strong revenue and EBIT growth driven by robust demand in core markets and successful expansion across Europe and internationally.

• Four new subsidiaries launched in the UK, Iberia, France, and Italy, strengthening European presence and supporting organizational build-up.

• Cloud user base grew 40% year-over-year to 2.9 million; premium app users up 44%, with recurring revenue streams improving.

• Installer portal saw 1,400 new onboardings in Q1, reaching 6,700 installers and supporting Pro channel growth.

• Product pipeline includes Plug M, advanced presence sensors, smart locks, cameras, and smart circuit breakers, with major launches expected to impact H2 2026.

Financial highlights

• Q1 2026 revenue reached €33.3 million, up 26% year-over-year, driven by strong demand across core markets.

• EBIT was €8.6 million, a 29–30% year-over-year increase, with EBIT margin slightly above 25%.

• Net income rose 34% year-over-year to €7.5 million.

• Gross margin expanded to 61.2%, with gross profit up 43% year-over-year, offsetting higher sales and marketing spend.

• Cash position improved to €19.8 million, up 19% year-over-year and 44% from year-end 2025, supported by €8.0 million operating cash flow.

Outlook and guidance

• 2026 guidance confirmed: revenue €195–205 million, EBIT €47–52 million, aligned with long-term targets.

• Cash expected to reach €35–45 million by year-end, with ongoing improvements in working capital and cash conversion cycle (targeting 220–240 days by year-end).

• H2 2026 expected to see significant revenue impact from new product launches and commercial ramp-up.

• Long-term outlook: core business expected to grow 10–15% annually post-2026, with additional upside from new product categories.