Bike24 Holding AG ($BIKE)

Good morning or good day, ladies and gentlemen. And a warm welcome to today's Q1 2026 Earnings Call of the Bike24 Holding AG. I'm delighted to welcome the CEO, Andrés Martin-Birner; and CFO, Sylvio Eichhorst, who will give us an update on the results in a moment. [Operator Instructions] And having said this, Andrés, this stage is yours.

Good morning, everyone, and welcome to our Q1 2026 earnings call of Bike24. Thank you for joining us today. My name is Andrés Martin-Birner, I'm the CEO and founder of Bike24. On the call with me today is Sylvio Eichhorst, our CFO. We will briefly run through the highlights of the first quarter 2026 and then open the line for Q&A. Please also note, this presentation is available on our Investor Relations website. Today's call is structured in 3 parts. We will start with a short general update on Q1, then move into the business and financial details, and finally conclude with our outlook before opening the floor for questions. Let's start with the quarter at a glance. We had a strong start into 2026, with revenue increasing to EUR 70.7 million in Q1, which represents growth of around 22% year-over-year. This growth was broad-based across markets and customer groups. That grew to EUR 447 million, up 21%, and our localized markets, again outperformed at EUR 17.5 million, up 30%. The demand indicators remain strong as well. Orders rose to almost 484,000, up 20%, supported by an active customer base of 1.18 million, up 25% over the last 12 months. Average order value was stable at EUR 146. At the same time, profitability improved materially with adjusted EBITDA reaching EUR 1.8 million, up by EUR 1.2 million versus last year. From an operational perspective, gross margin improved slightly to 25.5%, up 0.3 percentage points, supported by strong revenue momentum. Full-bikes continued to be an important growth driver, with bike revenue of EUR 12.4 million, up 27% year-over-year, driven both traditional bikes at EUR 7.9 million, up 27% and e-bikes at EUR 4.5 million, up 28%. To support demand and availability, we deliberately built inventory. Inventory increased to EUR 80.8 million as of March, up 22% year-over-year, by keeping the inventory to sales ratio stable at around 27%. With that said, let me now turn the presentation to Sylvio, who will give you some more details on our first quarter financials.

Thank you very much, Andrés, and also from my side, a warm welcome. Let us now move from our group. Revenue increase, a new high in Q1 to the category split. We continue to deliver growth in our core PAC business by further expanding the contribution from full-bikes. PAC revenue increased to EUR 58.4 million, up 21% year-over-year, driven by strong demand across parts, accessories and closing. Bike revenue grew even faster, reaching EUR 12.4 million, up 27% year-over-year, taking the bike share to around 18% of total revenue. Within bikes, both traditional bikes and e-bikes contributed -- [ contributional ] bikes was EUR 7.9 million, up 27%, and e-bikes was EUR 4.5 million, up 28%. The key takeaway is that our assortment strategy continues to work. PAC remains the stable backbone, while bikes provide an additional growth level and strengthen customer relevance. On the next slide, you see the geographic picture growth was broad-based across Europe. We're seeing continued momentum in our core region: Germany, Switzerland, Austria, and strong acceleration in localized markets. GSA grew to EUR 47.0 million, up 21% year-over-year, remaining the largest contributor, and roughly 2/3 of group revenue. Localized markets increased to EUR 17.5 million, up 30%, by recently localized markets such as Poland and Finland continue to scale even stronger, with Poland and Finland up by 76% to EUR 2.2 million, again demonstrating the scalability of our localization playbook. Rest of Europe grew in line with the group to EUR 5.4 million, up 22%. Revenue outside Europe declined to EUR 0.8 million, down by EUR 0.3 million, reflecting our focus on Europe and customer economics. Overall, this confirms that our strongest growth continues to come from markets where we combine localized customer experience with high service levels and availability. Turning to our customer KPIs. We saw strengthening demand and continued reality. Our active customer base grew to 1.18 million on the last 12 months basis, up 25%, showing that we are expanding our reach while retaining our existing customers. Looking at the customer split, GSA still represents the largest share of our customer base, and provides a strong repeat driven foundation, with active customers growing by 12%, while localized markets are growing from a smaller base at 19%. These KPIs confirm that our growth, in particular, are supported by solid customer engagement and a resilient customer experience. In GSA, as well as in localized markets, the average revenue per customer increased by 7% and 9%, respectively. Overall, average order value remained stable at EUR 146, up 1%, and the return rate was quarterly stable at 16.8%, up 0.2 percentage points, which supports healthy unit economics. Let me briefly comment on inventory because it is a key enabler of our customer promise and a central topic for cash discipline. Inventory increased, as Andrés already told you, to 80.8 million at the end of March, up 22% year-over-year, reflecting a high business volume and a targeted buildup to secure availability ahead of peak demand. Importantly, we kept the inventory to sales ratio broadly stable at around 27%. So inventory grew in line with revenue. From a mix perspective, bike inventory increased even faster, up 35% year-over-year, taking the bike share to around 27% of inventory, consistent with the growth in bikes in our strategy focus. Overall, we continue to aim for high availability by managing working capital tightly through more frequent and targeted replenishments. Looking at the income statement, the strong revenue growth year-over-year resulted also in the positive earnings development, with gross profit increasing by EUR 5.4 million to EUR 18 million, up 23.5%, and gross margin improving to 25.5%, up 0.3 percentage points. On operating expenses, performance marketing spend increased above the increase in revenue to EUR 1 million, up 44% year-over-year, with efficiency broadly stable. This reflects a high paid channel share in revenue. Selling expenses increased in line with revenue scale to EUR 6 million, up 90%. Personnel expenses rose to EUR 6.9 million, up 13%, mainly driven by higher temporary labor and fulfillment and general wage increases. As a result, adjusted EBITDA improved to EUR 1.8 million, up EUR 1.1 million year-over-year, and adjustments were significantly lower than last year, where they were mainly related to additional refinancing costs. Below adjusted EBITDA, depreciation and amortization amounted as in prior year to around EUR 4.2 million. Thus, reported EBIT improved from minus EUR 4.2 million but remained negative at EUR 2.5 million, primarily due to the continued amortization of goodwill like items of EUR 2.4 million. Net finance expense improved to 0 -- to minus EUR 0.7 million, down from minus EUR 1.9 million last year due to lower interest expenses and lower financing costs for the prolongation of the syndicated loan. Overall, the net results improved to minus EUR 2.2 million from minus EUR 4.2 million in Q1 last year. Looking at the different ratio as a percentage of revenue, you can see an improvement in almost all lines. Only performance marketing increased as a percentage of revenue, but it also contributed even more to our revenue growth at a high efficiency level. Adjusted EBITDA improved even over proportional, with EBITDA margin increasing from 1% to 2.5%. Turning briefly to cash and the balance sheet. Cash and cash equivalence ended Q1 at EUR 18.2 million, slightly down from EUR 19 million at year-end 2025. Free cash flow amounted to EUR 0.5 million, reflecting our deliberate inventory build from EUR 64.2 million to EUR 80.8 million and typically seasonally effects. Even with higher revenue and inventory levels, we were able to slightly reduce working capital overall, which underlines improved steering of operation and balance sheet items, particular trade accounts payable, which rose from EUR 11.2 million to EUR 29.8 million. The key message is that we are investing in availability to support growth by continuing to manage balance sheet discipline and liquidity potently. Looking at the complete cash flow statement. Compared to prior year, you can see that our cash flow from operating activities before taxes declined by 79.7% or EUR 3.6 million, mainly driven by the reduction of old stocks in the previous year. On the other hand, our cash flow from finance activities is much lower, driven by lower costs for the prolongation of our syndicated loan than last year, no redemption payments as well as lower interest costs. To summarize again, we delivered a strong start in 2026 with revenue of EUR 70.7 million, up 22% year-over-year, driven by broad-based growth across regions as well as categories. We continue to improve probability, with increased operating leverage resulting in an adjusted EBITDA of EUR 1.8 million, supported by a stable gross margin of 25.5% and disciplined cost management. We also invested consciously into availability, keeping the inventory to sale ratio stable at around 27%. Looking ahead, our priorities are to sustain growth, drive faster operating leverage and manage working capital and liquidity prudently. With that, let me now hand over to Andrés, who will share our outlook for the quarters to come.

Thank you, Sylvio. Looking ahead, we remain confident in our strategy and in the underlying demand for cycling products across Europe, combined with rigorous operational execution, on availability and attractive assortment, secure logistic processes and a strong focus on customer experience, we'll still see significant growth potential. Our focus for the coming quarters is to sustain double-digit growth while continuing to improve profitability. The figures for April 2026 already look promising and also show double-digit revenue growth. Given our strong start to 2026 and our current performance, we confirm our full year guidance for revenue in the range of EUR 318 million to EUR 332 million as well as an improvement in adjusted EBITDA to between EUR 16 million and EUR 20 million. However, please note that any guidance or forward-looking statements are subject to usual risks and uncertainties. Before we come to the Q&A, please have a short look on our main dates of our financial calendar 2026. With that, we have reached the end of our prepared remarks. Thank you for your attention. And now we are looking forward to take your questions.

[Operator Instructions] And we already received some participants, and Ingo Schmidt, you should be able to unmute yourself and place your question.

Ingo Schmidt from Montega. First of all, congratulations on the strong start to the year. It's great to see such strong momentum. I have 2 questions about the market. First, on growth drivers. You reported strong double-digit growth in Q1, even though consumer sentiment is [indiscernible], especially in Germany. What were the main reasons for this performance? For example, it's a [ mild ] weather in March help? Or are you seeing a more long-term shift like people moving from cars to bikes because of high fuel prices? And second, on the market overall, do you think the titling market is now starting to recover this year? Or is your strong performance mainly coming from gaining market share from competitors?

Yes. I think I catch these 2 questions. So when we look to the market, especially, and I look into our numbers, I would say, especially in Q1 in March, in particular, we saw a further increase in all the volumes and mainly due to an early start to the season with dry and sunny weather. And yes, I think as we -- that we -- and was in many, many years also before that yes, we were well prepared for that. And I think that we saw benefit from that more than others. So that answers your questions, I think that we gained market shares from other. And it's not only from online competitors. I think it's also from yes, special brick-and-mortar retailers because I think that they are more hitted by the negative things we had in the last year, the overstock issues and the cost problems and so on. And the other things, of course, what you said that I think that the high petrol prices at the petrol stations, I think are also providing a positive boost. And I think that's the main reason for our Q1 numbers. And on the other hand, as I mentioned, I think that we are very well prepared for this for this season. And that is one -- that is more of this, yes answer for your questions.

And we move on to the next participant, [ Mr. Specht ]. You should be able to unmute yourself and place your question. Mr. Specht, you have to unmute yourself. We can't hear you by now. Yes.

Sorry. Yes, I'll start with the technical one. I saw tax payments falling despite higher EBT. For sure, there is some swing always in this line, but it's -- a really good explanation for it, that would be good. And then on growth initiatives for the coming quarters, can you give us some more insight what you're planning on the product side or on the market side? More localization, whatever, some hints would be helpful. And then on the liability side, you refinanced your structures. Can you give us some details how the redemption will be in 2026?

May I have a question to you, a repeat question, Mr. Specht? You have asked about the taxes. You mean our tax expenses or...

Yes, tax expenses, P&L tax expenditures.

And they are lower than last year, yes?

Yes.

I mean, first of all, we have a better result. So that at the end, we have also less to activate what we may be -- what we have done in the last year. So we have different tax assets on losses carried forward. And on the other side, I mean, the rest is mainly the release of our deferred tax assets -- deferred tax liabilities that we have capitalized, yes, that we have recognized for our capitalized brands and customer relationship. But other than this, I cannot see any other differences, yes. And the second question, can you repeat this?

I think it's for the growth initiatives. I can catch this, I think it's -- yes, as we also did it last year. So our focus is still on growth in regarding bikes, here is, yes, that we think have a very good assortment. We feel also very well prepared. And our goal is also here to grow significantly at least above 10%. And I think this is also possible this year. And the other point, and it's parallel, it's our PAC business part with closing, that we also will here, have our focus and a good assortment. And as you also know, part of our strategy is localization. And here, we will have -- yes, we will localize in the end of Q2, beginning of Q3 to other countries. On our list, the priorities is now Denmark and Slovenia. So we will have -- or we will go further with localization and the top on our list are these 2 countries.

And then I'll take the last question, except we have something to add, Mr. Specht. But let me continue. Refinancing the redemption this year will be EUR 4 million, EUR 2 million in June and in EUR 2 million in December. And last year, we had EUR 5 million to retain.

And we move on to Mr. Michaels -- Mr. Charles. Michaels, you should be able to unmeet yourself and place your question. Yes, Mr. Michaels, we should hear you. Your microphone is open.

Great. Can you hear me?

Yes.

Perfect. Congratulations on another great quarter, gentlemen. I have more of a strategic question with respect to AI as -- there's so much discussion about AI. And 2 sides. How can you use AI today, if you are, maybe you could say how you are. And what do you think the threat of AI is to your business model?

Yes. Yes, we saw AI more as an opportunity, more as a change for Bike24. So we use AI. Of course, we had many initiatives in the company, especially in the IT, programming, content creation, service support. So yes, as I would say, many companies are doing this, and so we use it as well. And yes, and today, is the situation that we see it more as an opportunity for Bike24, especially in -- to hold the cost base stable on a special point and also you have this many supports in -- yes, for growth also for the coming years. So this is what we see and how, yes, AI today for Bike24.

And do you see any -- can you hear me? Do you see any competitors using AI in a way that can impact your growth, take business away from you?

No, today, not.

When you think of -- and you have your meetings and you think about the future and what you hear, do you see AI as any kind of a threat?

Today, I don't see this. I don't see this today.

I mean, particularly, what we are focusing on our -- I mean we have logistics, we have a lot of physical processes, which are not affected directly by AI. So much better we manage this as more difficult will be someone able to mirror this anyhow, yes. So I think that this gives us also a good outlook. However, when it comes to how we market our products, there might be developments, which we closely monitor currently. But currently, this impact is very minor, yes.

And talking about logistics, which are difficult for the single bricks-and-mortar bicycle shops, are you considering working more closely with your excellent logistics systems to help such companies? Are you in the process of doing anything like that?

Yes, it would be possible, but we -- I think we are focusing on our business and our business model. I think there's, yes, a lot of potential, as I also mentioned, in our first -- in my first statement today that we see high potential for growth. And that's why I think it's better for Bike24 to do the things we master very well and that's why we focus on that and not to have a focus on retailers or retail business.

But at the same time, just to mention that we're also preparing ourselves for such scenarios. That's not that we stay still. The technical presets we're also setting now. So yes.

And last question on my end, the environment you historically characterized as being very competitive, discounting, it's kept your margins lower than they would otherwise be. Has there been improvement in the competitive environment?

Yes. So we see -- yes, all the time, we see small exits from the markets. And so the sum of these exits, I think will support Bike24. But today, to be honest, it's still a difficult environment, yes, because of all the macroeconomic issues in the world. So that's why it's a little bit too early to say what will happen. But even maybe we see it in the market when I look especially to bike margins, I would say that we see today really a lower level of excess stock and not these big discounts also in the market. And this is one point where we will see a thing or where we expect margins to rise again in the medium term. So I think the situation, I think, for Bike24 is getting better and better. But for the whole market, I think for small players, I think the situation is not the best.

[Operator Instructions] Meanwhile, [ Ms. Janet Krause ] from the [ DZ Bank ] congratulates you on your positive development. So -- that's out of our Q&A box. And yes, we're waiting for some more questions on the line. And if this is not the case, we come to the -- and well, there is a question. Is there a possibility to refinance at cheaper cost? [indiscernible] is facing that question.

This is a question to me. I think there is a possibility. And of course, we're monitoring this closely. And however, we have 1 year, a very good year that we can show. We have another quarter. So banks are hesitating to or willing to finance us. Also in this -- as an understate in this very unsecured environment within the bicycles whereas goes to, it's not so easy to find a replacement. But nevertheless, we're looking this continuously up and also we want to secure our growth, and that's also why we need to have contract with banks and try to get better contracts going forward.

And yes, I'm waiting for somewhat raised hands for the Q&A session or some questions in our Q&A box. That's the case. I'll read it out. [ Mr. Michael Schulz ] is asking, could you comment on the development of the gross margin? What is the mid- to long-term outlook for the gross margin? Is there some operational or mix potential?

Yes. As we -- as I mentioned in the -- also in the earnings call before for the 2025 full year so that we -- that I said that I -- that we manage more on gross profit and not gross margins. And to be honest, we look to the price levels in the market. That's what we are looking that we have competitive prices on one hand. And on the other hand, to be honest, what we see is a product mix effect, especially also in the first quarter and also last year's last year that we sold a lot of accessories, especially home trainers and also electronics. And naturally, these categories have very low for gross margins. And so we have sometimes gross margin effects. This looks negative. But for Bike24, it's a very positive effect because we're gaining market shares. We're gaining gross profit as well. And that's why we -- I would say, strong focus on gross margin. So we shifted a little bit more to gross profit because it's for managing by '24, it's easier for us to scale out by '24. That's why we do this way today.

Thank you very much. And in the meantime, we have received no further questions. I'll wait a few more moments. Participants. [Operator Instructions] That's not the case so far, and we, therefore, come to the end of today's earnings call. Thank you very much to all the participants for joining this call and your interest in Bike24. Thank you to you both Sylvio and Andrés for the presentation and the time you took the answers. And from my side, I wish you a remaining lovely day. And for the final remarks, I hand back over to Andrés and Sylvio.

Yes. Thank you, again. Yes, for joining us today for your continued support. We appreciate, of course, your trust in Bike24. Yes, we look forward to keeping you updated on our progress over the coming quarters. Until then, we wish you all the best. And yes, have a good day. Bye-bye from Dresden.