Naked Wines (WINE) H1 2026 earnings summary

Executive summary

• Performance in the first half of 2026 is in line with FY26 guidance, with significant progress in customer acquisition, retention, and the completion of the first shareholder distribution.

• Structural changes and a strengthened leadership team have enhanced focus, speed, and accountability, supporting confidence in the new strategic plan.

• 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.

• Net cash (excluding lease liabilities) increased by £8.2m to £31.1m, supported by strong cash generation and inventory management.

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, due to reduced acquisition investment and prior large cohorts.

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

• Loss before tax reduced by 20% to -£3.0m, including £2.5m in adjusted items and £2.6m in inventory liquidation costs.

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

Outlook and guidance

• FY26 guidance reiterated: revenue £200m–£216m, adjusted EBITDA (excl. inventory liquidation) £5.5m–£7.5m, net cash £35m–£39m.

• 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.

• Peak trading season is progressing satisfactorily, with a trading update expected in January.

• Ongoing evaluation of inorganic opportunities as they arise.