Naked Wines (WINE) H2 2026 earnings summary

Executive summary

• FY 2026 results aligned with strategic goals, with adjusted EBITDA at GBP 7.6 million, up 35% year-over-year at constant currency, and net cash rising to GBP 33.4 million, reflecting disciplined capital allocation and a 10.5% share buyback.

• Revenue declined 18% year-over-year due to a strategic reduction in inefficient acquisition investment, but profitability and cash generation remained strong.

• Customer satisfaction and retention improved, with NPS at 77 and retention at 76%, driven by a refreshed value proposition and enhanced community engagement.

• Transition to Shopify/SaaS replatforming underway to improve customer experience and reduce costs, expected to deliver GBP 10 million in savings by FY 2029.

• Focus remains on core differentiators: craft, people, and connection.

Financial highlights

• Revenue was GBP 199.1 million, down 18% at constant currency compared to the prior year.

• Adjusted EBITDA reached GBP 7.6 million, up 35% year-over-year, driven by marketing efficiencies and improved gross margin.

• Gross margin improved by 150 basis points to 19.9% year-over-year.

• Loss before tax of GBP 6.3 million, impacted by adjusting items and inventory liquidation costs.

• Free cash flow was GBP 10.6 million, lower than last year's GBP 18.5 million as inventory unwind matures.

Outlook and guidance

• FY 2027 revenue guidance: GBP 158 million–GBP 175 million; adjusted EBITDA: GBP 7.6 million–GBP 9 million; net cash: GBP 34 million–GBP 42 million.

• At least GBP 36 million of the original GBP 45 million medium-term cash generation target remains to be achieved by FY 2030.

• Revenue stabilization expected by 2028–2030, with EBITDA growth to GBP 11 million–GBP 14 million even in downside scenarios.

• Ongoing price increases expected to have greater impact in FY 2027.

• Continued focus on disciplined capital allocation and monitoring for inorganic opportunities.