Naked Wines (WINE) H2 2025 earnings summary

Executive summary

• Delivered strong FY 2025 results, meeting guidance and stabilizing the business after prior declines.

• Initiated ongoing shareholder distributions, including a £2 million share buyback and a new regular distribution policy.

• Realigned the organization, centralized key functions, and invested in technology and under-resourced areas to support the new strategy.

• Focused on disciplined customer acquisition and retention, with a two-year plan to restore growth and profitability.

• Leadership transition with Jack Pailing appointed as new Chairman, signaling leadership stability.

Financial highlights

• FY 2025 revenue was £250.2 million, a 14% decline year-over-year, improving from the prior year’s 18% decline.

• Adjusted EBITDA for FY 2025 was £6.7 million, in line with guidance, with ongoing improvements expected.

• Net cash increased by £10.5 million year-over-year, closing FY 2025 at £30.1 million.

• Free cash flow improved to £18.5 million, primarily due to inventory reduction.

• EBIT improved by £8.5 million year-over-year, with a £3.3 million loss in FY 2025 versus a larger loss in FY 2024.

Outlook and guidance

• FY 2026 revenue guidance: £200–216 million, reflecting FX headwinds and ongoing stabilization.

• FY 2026 EBITDA guidance: £5.5–7.5 million, with growth expected over the year.

• Net cash expected to close FY 2026 between £35–39 million, after accounting for share buyback and FX impacts.

• Ongoing and ad hoc shareholder distributions planned as profitability and inventory liquidation allow.

• Medium-term ambition for 5–10% exit growth rate and annual adjusted EBITDA of £9–14 million.