Huuuge (HUG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $58.8 million, down 7.2% year-over-year, with adjusted EBITDA at $24 million and a 41% margin for the third consecutive quarter above 40%.

• Net operating cash flow reached $25.3 million in Q2 2025, and net profit was $17.3 million, up 14.5% year-over-year.

• Direct-to-consumer revenue doubled year-over-year to $25.2 million in H1, accounting for 24.6% of total sales in August 2025.

• Announced a $120 million share buyback for autumn 2025 and a new policy to return 50%-100% of annual free cash flow to shareholders.

• Revenue for the six months ended June 30, 2025 was $121.2 million, with net profit rising to $37.1 million from $31.6 million a year earlier.

Financial highlights

• Gross profit for Q2 2025 was $44.1 million, down 3.5% year-over-year, with a gross margin of 75% for H1 2025.

• Operating result was $20.8 million in Q2 2025, up 26% year-over-year.

• Net operating cash flow for Q2 2025 was $25.3 million; cash and cash equivalents at period end were $188.6 million.

• User acquisition marketing expenses fell to $14.8 million from $23.7 million year-over-year.

• Direct-to-consumer revenue grew to $25.2 million from $13.1 million year-over-year.

Outlook and guidance

• Confident in full-year top line guidance, with major feature releases planned for Q4.

• Marketing spend may increase slightly in H2 for campaigns, but UA spend to remain in low teens as a percent of revenue.

• Operating expenses (excluding marketing) expected to decline year-over-year, with restructuring projected to reduce costs by ~$12 million annually.

• Adjusted EBITDA and margin are both expected to increase year-over-year.

• Management is monitoring geopolitical risks, especially in Israel, but reports no significant impact as of the reporting date.