HelloFresh (HFG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was €1.68bn, down 7.7% in constant currency and 13.2% year-over-year, mainly due to FX headwinds, lower order volumes, and a deliberate shift to higher-value customers.

• Severe winter storms in North America and Europe caused a one-off negative impact of €24.5–25m on AEBITDA and revenue.

• AEBITDA was €23.6m, down 59.3% year-over-year, with margin at 1.4%, reflecting storm impacts and ongoing product investments.

• Strategic focus on higher-value, loyal customers increased average order value and improved customer retention.

• Positive free cash flow of €49.1m was achieved, supported by improved working capital despite lower AEBITDA and higher Capex.

Financial highlights

• Group revenue was €1,675.1m, down 13.2% year-over-year (7.7% in constant currency); contribution margin was 25.6%, down 1.4pp year-over-year.

• AEBITDA was €23.6m, with a margin of 1.4%; net loss narrowed to €55.9m from €123.7m YoY.

• Marketing expense decreased 14.8% year-over-year to €367.0m, now 21.8% of revenue.

• Capex increased to €44.4m, mainly for RTE production in Europe and Factor EU.

• Free cash flow was €49.1m, marking the fourth consecutive quarter of positive free cash flow.

Outlook and guidance

• FY 2026 outlook reconfirmed: revenue expected to decline 3–6% in constant currency, with AEBITDA guidance at €375–425m, adjusted for storm impact.

• Q2 expected to remain stable in rate of revenue decline, with bottom line €30–40m below Q2 2025 due to accelerated product investment.

• Second half of 2026 expected to show more visible benefits from product investments and efficiency programs.

• AOV expected to rise further, while order volume to decline faster than revenue.

• Meal kits expected to show sequential improvement; RTE recovery anticipated later in the year.