Boozt (BOOZT) Q4 2025 earnings summary

Executive summary

• 2025 was a transformational year with organizational streamlining, inventory clearance, and a sharpened focus on premium in-season sales, supported by AI-driven efficiencies and multi-category strategy.

• Net revenue grew 4% in constant currency in Q4, driven by Boozt.com (+7%), while Booztlet declined as inventory clearance was completed.

• Record free cash flow above SEK 1 billion in Q4 and SEK 871 million for FY 2025, supported by inventory and working capital improvements.

• AI integration and technology-driven efficiency enhanced customer experience and internal processes.

• The company de-risked its balance sheet and plans continued capital returns via share buybacks, with a focus on growth and market share expansion in 2026.

Financial highlights

• Q4 2025 net revenue up 4% in constant currency; full-year revenue up 3% year-over-year.

• Adjusted EBIT margin stable at 9.8% in Q4; full-year at 5.7%.

• Gross margin declined to 36.1% in Q4 (down 1.4pp), impacted by promotions and FX.

• Record free cash flow above SEK 1 billion in Q4, with cash conversion far above 100% for the year.

• Net cash position at year-end was SEK 1.1 billion.

Outlook and guidance

• 2026 guidance: constant currency revenue growth of 3%-8% and adjusted EBIT margin of 5.3%-6.5%, including negative FX impact.

• Growth momentum expected to accelerate through 2026, with strong second-half performance anticipated.

• CapEx expected at SEK 165-185 million, including SEK 40 million for warehouse insurance/fire security compliance.

• Free cash flow in 2026 expected to be moderate due to timing factors and inventory buildup.

• Long-term ambition to reach a 10% EBIT margin remains unchanged.