Verve Group Media (VRV) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 6.4% organic and 3.7% like-for-like revenue growth to €137.2 million, overcoming significant FX headwinds and a strong prior-year comparison.

• Gross margin improved by 2.7 percentage points year-over-year to 41.0%, driven by platform unification, AI-driven efficiencies, and operational optimization.

• Adjusted EBITDA declined by 6.2% to €28.3 million, with margin falling to 20.6% due to increased investments in sales force and retail media, as well as FX headwinds.

• Operating cash flow rebounded strongly to €45.2 million, up from €0.3 million in Q1 2025, aided by securitization program optimization and delayed Q4 inflows.

• Customer base expanded by 33.7% to 4,086, with 9% new customer growth and a 98% retention rate.

Financial highlights

• Reported revenues reached €137.2 million, up 25.8% year-over-year, with like-for-like growth of 3.7% and organic growth of 6.4%.

• Gross profit margin rose to 41.0%, up 2.7pp from Q1 2025.

• Adjusted EBITDA was €28.3 million (20.6% margin), down from €30.2 million year-over-year.

• Operating cash flow surged to €45.2 million, driven by working capital inflows and securitization.

• Cash and cash equivalents rose to €147.2 million at Q1 end, supported by bond tap and securitization.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue €680–730 million, adjusted EBITDA €145–175 million.

• Guidance based on USD/EUR rate of 0.8510 and excludes future acquisitions.

• H1 investments in sales and retail media expected to drive revenue growth in H2.

• Wider guidance range reflects uncertainty in timing of sales productivity inflection.

• Guidance does not yet include potential upside from recent retail media expansion.