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Introduction & Market Context
RVRC Holding AB (STO:RVRC), the parent company of outdoor apparel brand RevolutionRace, presented its Q1 2025/26 results on October 23, 2025, revealing solid growth across all regions and improved profitability. Following the presentation, the company's stock rose 8.68% to SEK 61.35, approaching its 52-week high of SEK 64.00.
RevolutionRace, which launched in 2014 and went public on Nasdaq Stockholm in 2021, has established itself as an international outdoor brand with a direct-to-consumer (D2C) business model. The company sells products in approximately 40 countries through 18 unique webshops, with its headquarters in Borås, Sweden.
As shown in the following company overview, RevolutionRace has built a strong customer community with over 2 million social media followers and more than 740,000 product reviews, achieving an impressive average rating of 4.6/5.0:
Quarterly Performance Highlights
In Q1 2025/26, RevolutionRace reported net sales of SEK 392 million, representing a 15% increase in local currencies (12% in SEK) compared to the same period last year. This growth pushed the company's rolling 12-month sales to SEK 2 billion, continuing its upward trajectory since 2021/22.
The quarterly net sales chart below illustrates the company's consistent growth pattern, with Q1 typically being a lower-volume quarter compared to the peak Q2 period:
CEO Paul Fischbein highlighted the company's strong customer offering and growth ambitions during the presentation: "Our aim is to grow at 20% while maintaining an EBIT margin of 20% on a full-year basis."
Key operational developments during the quarter included a new brand store opening and strengthening of the management team, positioning the company for continued expansion.
Regional Growth Analysis
RevolutionRace achieved growth across all its geographic regions during Q1 2025/26. The DACH region (Germany, Austria, and Switzerland) remains the company's largest market, accounting for 55% of total sales, followed by the Nordics at 27% and Rest of World at 18%.
The following chart breaks down the regional sales performance, showing strong growth in both the DACH region (+18% in local currencies) and the Nordics (+19% in local currencies):
Notably, 73% of net sales are now generated outside the Nordic region, demonstrating the company's successful international expansion strategy. The Rest of World segment showed more modest growth of 2% in local currencies, slightly declining by 2% when measured in SEK due to currency effects.
Profitability and Margins
RevolutionRace maintained industry-leading margins in Q1 2025/26, with gross profit increasing by 11% to SEK 273 million. The gross margin was 69.6%, slightly down from 70.0% in the same period last year but still significantly above industry averages.
The following chart shows the company's gross profit and margin development over time:
More impressively, the company's EBIT margin improved to 19.0% in Q1, up from 16.3% last year, demonstrating enhanced operational efficiency. This improvement was partly attributed to better marketing efficiency, with other external expenses as a share of net sales slightly lower than last year.
The EBIT development chart below shows the company's earnings trajectory:
Balance Sheet and Cash Position
RevolutionRace maintained a strong financial position at the end of Q1 2025/26, with a solid cash balance of SEK 181 million and a net cash position of SEK 163 million after accounting for lease liabilities of SEK 19 million. The company's credit facility of SEK 600 million remained undrawn, providing additional financial flexibility.
The company's inventory stood at SEK 586 million, representing a slight increase of SEK 9 million compared to Q1 last year and SEK 65 million compared to the previous quarter. Management described the inventory as "well balanced" and expects it to gradually decrease during the current financial year.
The inventory development is illustrated in the following chart:
During Q1, RevolutionRace continued its share repurchase program, buying back 665,836 shares for a total of SEK 32 million, down from SEK 69 million in the same period last year. The company has also proposed a dividend of SEK 1.35 per share, representing a 13% increase from the previous year.
Forward-Looking Statements
Looking ahead, RevolutionRace is entering its peak season from November to December, with management expressing optimism about continued growth in the early weeks of Q2. The company plans to focus on marketing efficiency and gradual inventory reduction throughout the financial year.
Potential challenges mentioned include currency effects, tariffs affecting the U.S. market, and macroeconomic pressures that could influence consumer spending. However, with its debt-free balance sheet and strong liquidity position, RevolutionRace appears well-positioned to fund its growth initiatives and navigate these challenges.
The company remains committed to its vision of becoming "the world's most recommended outdoor brand" and its mission of "making the outdoors accessible to all" as it continues its global expansion strategy.
Full presentation:
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