Zalando (ZAL) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 growth, with full consolidation of ABOUT YOU from July 11, 2025, significantly expanding scale, customer base, and market reach.

• Ecosystem strategy and dual-brand approach drove profitable growth in both B2C and B2B, with notable expansion in sports and lifestyle through partnerships like the German Football Federation.

• B2B growth supported by major enterprise wins and extended partnerships, including Marks & Spencer, NEXT, and DEICHMANN.

• Active customers increased to 61.4 million, up 21.9% year-over-year, reflecting the enlarged base post-acquisition.

• Anna Dimitrova appointed as CFO, effective January 1, 2026.

Financial highlights

• Q3 2025 GMV grew 21.6% year-over-year to €4.21 billion; revenue up 26.5% to €3.02 billion, mainly due to ABOUT YOU integration.

• Adjusted EBIT for Q3 was €96.3 million (margin 3.2%), slightly above last year; gross margin at 39.6%, down 1.1pp year-over-year.

• Net income for Q3 was €12.5 million, down from €44.3 million in the prior year; 9M net income at €119.0 million, down from €131.1 million.

• Free cash flow for 9M 2025 at -€806.4 million, mainly due to acquisition and bond repayment.

• Cash and cash equivalents at €1.3 billion, down from €2.6 billion at year-end 2024.

Outlook and guidance

• Full-year 2025 guidance confirmed: pro-forma GMV and revenue growth of 4–7%, adjusted EBIT €550–600 million, capex €200–280 million, and negative net working capital.

• Ambition to accelerate growth and increase profit in 2026, in line with midterm guidance and integration benefits.

• Committed to midterm group-level gross margin target of around 40% by 2028.