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

Executive summary

• Revenues declined year-over-year due to market contraction, macroeconomic pressures, and intensified competition, but sequential improvement was seen in Q3 driven by seasonality and disciplined pricing.

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

• Ongoing investments in digitalization and AI-powered tools are expected to further enhance performance and stock turnover.

• Transformation initiatives and sustainability commitments continue, including targets for emissions reduction and Net Zero by 2050.

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 margin improved by 1.6 percentage points year-over-year in Q3 to 13.9%; nine-month margin at 13.7%.

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

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

• 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.

• Long-term growth strategies emphasize digital transformation and sustainable business practices.