Gear4music (G4M) H2 2025 earnings summary

Executive summary

• Revenues grew 2% year-over-year to £146.7m, with H2 FY25 up 4% and UK revenues up 8% to £90.2m.

• EBITDA increased 7% to £10.0m, and profit before tax rose to £1.6m, up £1.0m from FY24.

• Net bank debt reduced by £0.9m to £6.4m, equating to 0.6x EBITDA.

• Growth strategy revised in June 2024, with early traction in second-hand sales (+161% YoY) and platform upgrades planned for FY26.

• Board expectations for FY26 have been uplifted due to accelerating momentum and market consolidation.

Financial highlights

• Gross profit increased 1% to £39.7m, with a gross margin of 27.0%.

• EBITDA margin at 6.8%, up from 6.5% in FY24 (adjusted for one-off costs).

• Net profit was £0.8m, up from £0.7m in FY24.

• Product margin stable at 31.2%, with own-brand margin up 140bps YoY to 46.7%.

• Cash and cash equivalents at year-end were £5.6m.

Outlook and guidance

• Revenue growth is accelerating into FY26, with double-digit growth reported in April 2025.

• Board expectations for FY26 have been raised, with substantial platform upgrades and new systems due.

• Well positioned to invest in growth projects and enhance efficiency.