Gear4music (G4M) Q2 2025 TU earnings summary

Executive summary

• Achieved a return to revenue growth in Q2 FY25 after launching a new growth strategy in June 2024.

• Overcame early challenges with a new AI-based marketing system, stabilizing marketing investments and efficiency.

• Acquired Studiospares Europe Limited, expanding the own-brand portfolio and supporting long-term margin growth.

• Second-hand sales platform gained significant traction, expected to continue growing.

Financial highlights

• Total revenue for H1 FY25 was £61.7m, down 1% year-over-year; UK revenues up 4%, European and Rest of World revenues down 9%.

• Gross margin expected at 26.7%, slightly below FY24 H1 (27.1%) but above FY23 H1 (26.3%).

• Gross profit expected at £16.5m (FY24 H1: £17.0m).

• EBITDA expected at £2.9m, matching FY24 adjusted EBITDA and above FY24 reported EBITDA (£2.4m).

• Reported loss before tax improved by £0.7m to £1.2m compared to FY24 H1.

Outlook and guidance

• Stronger growth achieved in October FY25 trading to date.

• Well-positioned for the upcoming peak seasonal trading period.

• Full-year outlook remains in line with consensus market expectations: revenue £154.7m, EBITDA £11.7m, profit before tax £2.8m.