Mister Spex (MRX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 13% year-on-year to EUR 44.7–45 million, mainly due to strategic store closures, online contraction, and the "SpexFocus" transformation program.

• Gross margin improved by 441 basis points to 56.4%, driven by cost controls, reduced discounting, and a stronger product mix.

• EBIT loss narrowed by EUR 3 million to minus EUR 6.3 million, reflecting margin gains and cost reductions.

• Free cash flow improved by EUR 3.2 million to EUR -1.5 million, with cash and cash equivalents at EUR 70–70.3 million, indicating strong liquidity.

• 34 stores are now EBIT positive, up from 19 last year, reflecting successful restructuring.

Financial highlights

• Net revenue: EUR 44.7 million in Q1 2025, down 13% year-on-year.

• Gross profit margin: 56.4% (up 441 bps year-on-year).

• EBIT: minus EUR 6.3 million, a EUR 3 million improvement from Q1 2024.

• EBITDA: minus EUR 1.0 million, improved by 62% year-on-year.

• Loss for the period: minus EUR 6.8 million, a 30% improvement year-on-year.

• Free cash flow: EUR -1.5 million, improved by EUR 3.2 million year-on-year.

• Cash and cash equivalents: EUR 70.3 million at quarter-end.

Outlook and guidance

• 2025 guidance confirmed: net revenue decline of -5% to -10%, EBIT margin between -5% to -15%, and year-end cash equivalents of EUR 65 million plus/minus EUR 5 million.

• Q2 will remain affected by prior store closures; marketing activities to ramp up, especially internationally.

• Emphasis on recurring revenue through the Switch subscription program and further cost improvements.

• Focus remains on "SpexFocus" program to drive profitability, with key levers being higher average order value and gross margin optimization.