About You (YOU) Q3 2025 earnings summary

Executive summary

• Group revenue grew 1.3% year-over-year to €558.9 million in Q3 2024/2025, with Adjusted EBITDA at €20.1 million (3.6% margin) and strong free cash flow of €123.9 million; cash position at €255.9 million at quarter-end.

• Zalando announced a public tender offer of €6.50 per share to acquire up to 100% of the company, with main shareholders supporting the offer and closing expected in summer 2025.

• LTM active customers increased 3% to 12.8 million, and average order value rose 5.8% to €59.3.

• SCAYLE segment delivered ~30% ARR growth, high gross margins (~85%), and expanded with major clients like Harrods and Manchester United.

• DACH region led with 18% revenue growth, while Rest of Europe was stable and TME segment revenue rose 6.9%.

Financial highlights

• IFRS group revenue up 1.3% year-over-year to €558.9 million, with a technical shift of €25 million in Black Week revenues to Q4.

• Adjusted EBITDA stable at €20.1 million (3.6% margin); DACH segment margin at 4.9%, ROE margin improved to -1.8%, TME margin at 34.1%.

• Gross margin increased to 42.0% (up 1.7pp year-over-year), driven by higher tech revenue share and lower promotional intensity.

• Fulfillment cost ratio rose to 22.6% due to one-off effects and revenue shifts; marketing costs stable at 12.2%; admin expenses reduced to 3.6% of revenue.

• Net working capital at negative €161.4 million, down year-over-year; Capex at €10.1 million in Q3.

• Free cash flow at €123.9 million, and cash balance at €255.9 million, up year-over-year.

Outlook and guidance

• Revenue growth for FY 2024/2025 expected in the 1%-7% range, with Adjusted EBITDA between €15-€35 million.

• Q4 revenue growth expected to move full-year growth toward the upper end of guidance, with a 10% Q4 growth target seen as ambitious but realistic.

• Capex guidance unchanged at €30-€50 million for the year; net working capital to remain negative.

• Guidance is subject to external risks and the duration and outcome of external events.