Westwing Group (WEW) investor relations material

Executive summary

• Adjusted EBITDA rose 84% year-over-year to €44 million (9.8% margin), exceeding guidance and achieving all 2025 financial commitments.

• Revenue grew 1.1% year-over-year to €449 million, reaching the upper half of guidance.

• Free cash flow increased 275% year-over-year to €34 million; net cash position at year-end was €92 million.

• Completed phase II and entered phase III of a three-step value creation plan, focusing on scaling, premium positioning, and international expansion.

• Launched in ten new countries and opened seven new stores in 2025, with Westwing Collection GMV up 17% to €321 million.

Financial highlights

• Q4 2025 revenue up 7% year-over-year, driven by strong Black Week and year-end sales.

• Adjusted EBITDA margin improved to 9.8% from 5.4% in 2024; adjusted EBIT margin for the year at 6.5%.

• Gross margin increased by 2.1 percentage points year-over-year, reaching 54.3% in Q4 and 52.9% for the year.

• DACH segment revenue declined 2.1% year-over-year, while International segment grew 5.3%.

• Westwing Collection GMV reached €321 million, 63% of group GMV.

Outlook and guidance

• 2026 revenue guidance: €470–495 million (5–10% growth); adjusted EBITDA guidance: €36–48 million (7.7–9.7% margin).

• Country expansion, especially the UK, is the main growth driver for 2026, with plans for a new Frankfurt store.

• Guidance reflects macro uncertainty, temporary headwinds from the Middle East conflict, and margin pressure from expansion investments.

• Free cash flow may be lower in 2026 due to higher stock option exercise outflows.

• No specific outlook beyond 2026 due to macro and geopolitical uncertainties.