Gear4music (G4M) Q3 2025 TU earnings summary

Executive summary

• Achieved 6% total revenue growth year-over-year for the three months ending 31 December 2024, reaching £49.0m.

• Performance during the peak seasonal trading period was in line with Board expectations, despite a challenging consumer environment.

• Christmas trading was impacted by a late Black Friday, condensing peak revenues into the three weeks before Christmas.

Financial highlights

• UK revenue increased by 13% year-over-year to £29.7m, while European and Rest of World revenue declined by 4% to £19.3m.

• Gross margin remained strong at 28.1%, compared to 28.2% in the prior year and 25.6% two years ago.

• Gross profit rose to £13.7m, up £0.6m from the previous year.

• EBITDA for FY25 Q3 was in line with consensus market expectations.

Outlook and guidance

• January trading continues to meet Board expectations.

• The business is positioned for continued profitable growth in FY26.

• Consensus market expectations for the year ending 31 March 2025 are revenues of £154.7m, EBITDA of £11.7m, and profit before tax of £2.8m.