Bang & Olufsen (BO) Q3 2025 earnings summary

Executive summary

• Q3 2024/25 revenue grew 2% in local currencies, led by EMEA and Americas, while APAC declined.

• Record gross margin of 55.4% and EBIT margin before special items of 3.8% were achieved.

• Free cash flow improved to DKK 18 million, up DKK 13 million year-over-year.

• Like-for-like sell-out increased 15%, with 21% growth in branded channels and 36% in Win Cities.

• Strategic investments and product innovation continued, supported by a DKK 217 million capital raise.

Financial highlights

• Q3 revenue: DKK 631 million (+2.8% YoY); 9M revenue: DKK 1,873 million (-3.1% YoY).

• Gross margin reached a record 55.4%, up 2.2 percentage points year-over-year.

• EBIT margin before special items was 3.8%, up from 1.8% last year.

• Free cash flow for Q3 was DKK 18 million; 9M free cash flow DKK 12 million.

• Inventory at lowest level in over three years at DKK 413 million.

Outlook and guidance

• FY 2024/25 revenue growth expected at the lower end of -3% to +3% in local currencies due to APAC challenges.

• EBIT margin before special items expected in the mid-range, supported by gross margin development.

• Free cash flow expected at the higher end of DKK -100 million to 0 million, driven by working capital and CapEx timing.

• Mid-term ambitions: 8% organic growth CAGR, 8% EBIT margin, DKK 250 million free cash flow by 2027/28.