Gear4music (G4M) H1 2026 earnings summary

Executive summary

• H1 FY26 revenue rose 31% year-over-year to £80.7m, with strong growth in both UK (+28%) and international (+35%) markets.

• EBITDA increased to £6.9m (up 139%), with margin improving to 8.5% from 4.7% last year.

• Profit before tax reached £2.7m, reversing a £1.2m loss in the prior period.

• Market share gains driven by competitor failures, strategic acquisitions, and improved marketing.

• Board upgraded FY26 expectations, citing ongoing momentum, new system deployments, and capacity expansion.

Financial highlights

• UK revenues up 28% to £49.6m; international revenues up 35% to £31.1m.

• Gross profit rose 38% to £22.7m, with gross margin up 150bps to 28.2%.

• Product margin improved to 32.1%, with own-brand margin up 170bps and other-brand margin up 140bps year-over-year.

• Net profit of £2.0m, compared to a £1.2m loss in FY25 H1; EPS of 9.6p.

• Net bank debt increased to £16.0m, reflecting early inventory investment.

Outlook and guidance

• Board raised FY26 guidance, expecting continued revenue growth and margin improvement.

• Full-year EBITDA now expected to be not less than £15.0m, ahead of consensus.

• New UK warehouse to drive operational efficiency and support future growth, with capacity to increase by 2.5x.

• Multiple flagship software deployments scheduled for FY26 Q4.

• Board will provide a trading update post-Christmas.