Naked Wines (WINE) H1 2026 earnings summary

Executive summary

• Performance in the first half of 2026 is in line with guidance, with significant progress in acquisition, retention, and the first shareholder distribution completed.

• Structural and leadership changes have improved focus, speed, and accountability, with confidence in the new strategic plan set in March 2025.

• The business model leverages direct connections between customers and winemakers, driving loyalty and differentiation.

• Adjusted EBITDA excluding inventory liquidation and associated costs rose 112% year-over-year to £3.6m, with gross profit margin up to 19.5% from 16.9%.

• Revenue declined 18% year-over-year to £89.5m, reflecting a strategic focus on profitable core members and reduced inefficient acquisition spend.

Financial highlights

• Adjusted EBITDA (excluding inventory liquidation) reached £3.6m, up 112% year-over-year, driven by marketing efficiencies and cost savings.

• Revenue for HY26 was £89.5m, down 18% year-over-year at constant currency, as expected due to prior large cohorts and reduced acquisition investment.

• Gross profit margin improved by 260bps to 19.5% year-over-year, reflecting price increases, better first order loss, and operational efficiencies.

• Loss before tax narrowed to £3.0m from £5.6m, after £2.5m of adjusted items and £2.6m in inventory liquidation costs.

• Net cash position at September 2025 was £31m, up £8m from prior year, reflecting inventory liquidation and after a £2m share buyback.

Outlook and guidance

• Full-year 2026 guidance is reiterated: revenue £200m–£216m, adjusted EBITDA (excl. inventory liquidation) £5.5m–£7.5m, net cash £35m–£39m.

• Trading post-period end remains in line with FY26 guidance, with progressive growth in adjusted EBITDA and significant cash generation expected.

• Inventory liquidation costs of $17 million are expected to be spread over the next three years.

• Ongoing and one-off shareholder distributions are planned as profitability and cash generation increase.

• Targeting £40m in cash generation over the medium term, with continued inventory liquidation.