Gear4music (G4M) Q4 2025 TU earnings summary

Executive summary

• Achieved total revenue of £146.7m for FY25, up 2% year-over-year, with UK sales rising 9% and European/Rest of World sales declining 8%.

• EBITDA expected at £10.0m, up from £9.4m in FY24, and profit before tax (PBT) at £1.6m, a £1.0m improvement year-over-year.

• Net bank debt reduced to £6.4m, down from £7.3m in FY24 and £14.5m in FY23.

• Performance in late Q4 improved as competitive pressures eased due to market exits by some retailers.

Financial highlights

• Gross margin expected at 27.1%, slightly down from 27.3% in FY24 but up from 25.7% in FY23.

• EBITDA of £10.0m, up 6% year-over-year; PBT of £1.6m, up from £0.6m in FY24.

• Net bank debt reduced to £6.4m, with leverage at 0.6x FY25 EBITDA, down from 0.8x in FY24.

• FY25 results below consensus expectations of £154.7m revenue, £11.7m EBITDA, and £2.8m PBT.

Outlook and guidance

• Strategic investments in own-brand products, second-hand offerings, marketing, and e-commerce platform to drive future growth.

• Economic uncertainty persists, but recent momentum and competitor exits position the group for accelerated performance in FY26 and beyond.