HelloFresh (HFG) Q2 2025 earnings summary

Executive summary

• Revenue declined 9–9.8% year-over-year in Q2/H1 2025 to €1.7bn (Q2) and €3,630.3m (H1), mainly due to lower order volume, with efficiency programs driving margin improvements and free cash flow expansion.

• Adjusted EBITDA (AEBITDA) for Q2 reached €158.5m (up 8.2%), and AEBIT (excluding impairment) rose 20.8% to €101.4m, reflecting strong operational execution.

• Contribution margin expanded by 1.3–1.4pp to 27.3%, a multi-year high, and free cash flow for H1 increased fourfold year-over-year to €208.0m.

• Strategic focus shifted to higher-quality customer acquisition and product reinvestment, with major product upgrades and menu expansions underway.

• Share buyback program increased from €75m to €175m, with initial tranches nearing completion and convertible bonds fully repaid.

Financial highlights

• Q2 2025 revenue: €1.7bn (down 9–9.5% year-over-year); H1 2025 revenue: €3,630.3m (down 9.8%).

• Q2 2025 AEBITDA: €158.5m (margin 9.3%); H1 2025 AEBITDA: €216.5m (margin 6.0%).

• Q2 2025 AEBIT (excl. impairment): €101.4m (margin 6.0%); H1 2025 AEBIT (excl. impairment): €97.7m (margin 2.7%).

• Free cash flow for H1 2025: €208.0m (up from €50.9m); free cash flow per diluted share: €1.24 (up from €0.30).

• Net income for Q2 2025: €13.3m (up 49.4% year-over-year); H1 2025 net loss: €110.4m, mainly due to impairment charges.

Outlook and guidance

• FY2025 constant currency revenue guidance narrowed to (6)%–(8)% due to FX headwinds and temporary RTE setbacks.

• FY2025 AEBITDA guidance updated to €415–465m and AEBIT (excl. impairment) to €175–225m.

• Underlying earnings performance, excluding FX, is slightly better than initial outlook; margins remain unchanged.

• Product reinvestment and menu expansion expected to drive growth reacceleration in Q4 and beyond.

• Targeting positive group growth in 2026, with RTE Europe ramping up as a key milestone.