Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q3 2025 earnings summary

Executive summary

• Revenues declined year-over-year due to challenging macroeconomic conditions, high interest rates, and intensified competition, but sequential improvement was seen in Q3 driven by seasonality and disciplined pricing.

• Strategic focus on cost optimization, store network restructuring, and digital transformation—including AI-driven projects—is driving operational efficiency and profitability.

• Marketplace platform expanded to approximately 1,400 merchants and 244,000 SKUs, with e-commerce accounting for about 11% of total net sales.

• Ongoing investments in digitalization, AI-powered tools, and sustainability initiatives, including Net Zero by 2050 commitments.

Financial highlights

• Q3 2025 revenue was TL 19,901 million, down 6.5% year-over-year; nine-month revenue totaled TL 57,703 million, down 8.7% year-over-year.

• Gross profit margin improved to 13.9% in Q3 and 13.7% for the nine months, up from 12.1% year-over-year.

• EBITDA for Q3 2025 rose 38% year-over-year to TL 1,253 million (margin 6.3%); nine-month EBITDA up 37% to TL 2,755 million (margin 4.8%).

• Net loss for Q3 2025 was TL 231 million, a 53% improvement from Q3 2024; nine-month net loss was TL 1,285 million, improved from TL 1,455 million in 9M24.

• Net working capital improved by approximately TL 1 billion quarter-over-quarter.

Outlook and guidance

• Management expects ongoing margin and efficiency gains from digital transformation, cost optimization, and strategic initiatives.

• Gradual normalization in policy rates and continued focus on high-margin categories are anticipated to support sustainable profitability and net income recovery.

• Fourth quarter anticipated to be the strongest period, supported by new product launches and targeted campaigns.

• Financial statements are prepared under hyperinflationary accounting (TAS 29/IAS 29), reflecting significant inflation adjustments.