Westwing Group (WEW) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA rose 84% year-over-year to €44 million (9.8% margin), exceeding guidance and reflecting strong profitability.

• Revenue grew 1.1% year-over-year to €449 million, reaching the upper half of guidance.

• Free cash flow increased 275% year-over-year to €34 million; net cash at year-end was €92 million.

• Completed phase II and entered phase III of a value creation plan, focusing on scaling, premium positioning, and international expansion.

• Launched in ten new countries and opened seven new stores in 2025, with Westwing Collection GMV up 17% to €321 million.

Financial highlights

• Adjusted EBITDA margin improved to 9.8% from 5.4% in 2024; adjusted EBIT margin rose to 6.5%.

• Gross margin increased by 2.1 percentage points to 52.9% for the year; Q4 gross margin reached 54.3%.

• DACH segment revenue declined 2.1% year-over-year, while International segment grew 5.3%.

• Westwing Collection GMV grew 17% year-over-year to €321 million, now 63% of total GMV.

• Negative net working capital at year-end, driven by inventory reduction and strong Q4 topline.

Outlook and guidance

• 2026 revenue guidance: €470–495 million (5–10% year-over-year growth); adjusted EBITDA guidance: €36–48 million (7.7–9.7% margin).

• Margin pressure expected in H1 2026 due to macro headwinds and intensified competition.

• Country expansion, especially the UK, is the main growth driver for 2026.

• Guidance assumes no prolonged Middle East conflict or severe energy crisis.

• No specific outlook beyond 2026 due to macro and geopolitical uncertainties.