Shelly Group (SLYG) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €54.0M, surpassing targets, with all regions growing above market averages and EBIT in line with or exceeding expectations; installed cloud user base surpassed 2.3 million, and over 4.9 million households reached.

• Significant free cash flow improvement, strong progress in transitioning from DIY to professional markets, and rapid installer network expansion to over 2,400 by June.

• Premium App subscribers and daily cloud activations exceeded targets, supporting SaaS business model transition.

• Strategic partnerships, such as with EcoFlow, and new verticals in motors, security, and energy contracts are progressing.

• The Group expanded its international presence, acquiring additional stakes in subsidiaries and establishing a new entity in Poland.

Financial highlights

• H1 2025 revenue grew 29.3% year-over-year to €54.0M, with EBIT up 12.7% to €12.2M and an EBIT margin of 22.6%, impacted by a €1.6M FX loss; net income rose 10.1% to €10.2M.

• Adjusted EBIT margin would be 25.4% excluding FX effects; cash flow from operations increased by €6.2M year-over-year.

• Premium app revenue grew 79%, with user base up 145% year-over-year; deferred revenue recognition due to annual payment model.

• Equity ratio remains strong at 81%.

• Gross margin stable at 55.8% in H1 2025.

Outlook and guidance

• H2 2025 expected to see accelerated growth, targeting 40% revenue growth in Q3 and 50% in Q4, driven by new product launches and regional expansion; 2025 and 2026 guidance confirmed.

• EBIT margin guidance confirmed at 25% for the year, with positive FX and sourcing effects anticipated in H2.

• Product pipeline for H2 2025 includes 40-60 new products and updates, with 30+ to be announced at IFA 2025.

• New offices in Poland, UK, Benelux, and Iberia to support further market penetration.

• Management expects continued growth in sales and inventory levels, driven by expanding product assortment and international operations.