Zalando (ZAL) Q4 2025 earnings summary

Executive summary

• Achieved strong double-digit growth and profitability in 2025, reaching the high end of guidance, driven by ABOUT YOU acquisition, AI-powered innovation, and strategy execution.

• Active customer base grew to 62 million (+19.7% year-over-year), with increased engagement and spending across multiple apps.

• Accelerated synergy capture from ABOUT YOU, with full €100 million synergy potential expected by 2028, one year ahead of plan.

• Announced a capital allocation framework focused on maintaining a strong balance sheet, disciplined investment, and returning excess capital via a €300 million share buyback.

Financial highlights

• Group revenue rose 16.8% year-over-year to €12.3 billion; adjusted EBIT increased 15.6% to €591 million.

• Group GMV grew 14.7% to €17.6 billion; B2C revenue reached €11.3 billion, B2B revenue €1.1 billion.

• Gross profit increased 13.6% to €4.8 billion (42.3% margin); group gross margin at 39.9%.

• Net income for 2025 was €212.7 million, down from €251.1 million in 2024.

• Operating cash flow of €1.1 billion; strong cash position of €1.9 billion after funding acquisition and bond repayment.

Outlook and guidance

• 2026 guidance: GMV and revenue growth of 12–17% year-over-year; adjusted EBIT targeted at €660–740 million.

• Midterm (2023–2028): GMV and revenue CAGR of 8–13%; adjusted EBIT margin of 6–8%; CapEx at ~2% of revenues.

• ABOUT YOU synergies of €100 million expected by 2028, one year ahead of plan.

• Outlook excludes potential impact from prolonged Middle East conflict and other macroeconomic risks.