Shelly Group 9M 2025 slides: 33.8% revenue growth, EBIT margin expands to 29.5% in Q3

Introduction & Market Context

Shelly Group AD (SLYG) presented its 9-month trading update on November 13, 2025, revealing strong financial performance with revenue growth significantly outpacing the broader smart home market. The company reported €86.9 million in revenue for the first nine months of 2025, representing a 33.8% increase compared to the same period last year, while maintaining its streak of 31 consecutive quarters of growth.

The smart home technology provider continues to strengthen its market position across Europe while expanding its global footprint, with particularly strong performance in the DACH region (Germany, Austria, Switzerland) and emerging markets. Shelly's stock rose 1.53% following the announcement, closing at €37.80.

Quarterly Performance Highlights

Shelly Group's third quarter of 2025 showed particularly impressive results, with revenue reaching €33.0 million, a 42.1% increase compared to Q3 2024. Even more notable was the EBIT performance, which more than doubled to €9.7 million, representing a 111.3% year-over-year growth and pushing the Q3 EBIT margin to 29.5%.

As shown in the following chart of quarterly EBIT performance, the company has maintained strong profitability growth across multiple quarters:

The company's revenue growth remained consistent across all quarters, with Q3 showing the strongest performance of the year. This steady growth trajectory has been a hallmark of Shelly's business model.

Regional performance varied, with the DACH region continuing to lead at 52.1% of total revenue, growing 38.8% year-over-year to €45.3 million. Rest of Europe contributed 36.5% of revenue with 15.6% growth, while Rest of World showed the most dramatic expansion, more than doubling (+103.4%) to reach €10.0 million.

Detailed Financial Analysis

Shelly Group's nine-month financial results showed strong performance across key metrics. Revenue reached €86.9 million, representing a 33.8% increase from the previous year's €65.0 million. EBIT grew even faster at 42.7% to reach €21.9 million, resulting in a healthy EBIT margin of 25.2% for the nine-month period.

The company's cash position improved significantly to €15.7 million, a 38.3% increase compared to the same period in 2024, demonstrating effective free cash flow management after a dip in the previous year.

Gross profit for the nine-month period reached €50.1 million, representing a gross margin of 57.6%, slightly improved from 57.3% in the comparable period of 2024. The company noted that changes in distribution contracts and accounting reduced revenue by approximately €1.8 million; without this effect, like-for-like growth would have been 36.6%.

Strategic Initiatives

Shelly Group continues to execute on its strategic transformation from a pure hardware provider to a software-as-a-service (SaaS) company. The presentation highlighted the company's growing installed base, which now includes over 28.8 million devices sold (with 11 million added in the last 12 months), 5.2 million households, and 2.5 million cloud users.

The company's comprehensive smart home ecosystem covers a wide range of applications, as illustrated in this overview:

A key focus for Shelly is expanding its SaaS business through increased cloud activations and Premium App subscriptions. Daily activations of new devices grew by 45.5% compared to 2024, while Premium App users nearly doubled to 35.1K, generating €0.53 million in SaaS revenue during the first nine months of 2025.

Looking ahead to 2026, Shelly outlined several growth initiatives including expansion into new product categories. The company plans to launch smart locks through its recently acquired LOQED brand, introduce indoor and outdoor cameras, develop connected smart breakers, and create a platform called "Shelly X" for connecting non-smart devices.

Forward-Looking Statements

Shelly Group confirmed its guidance for 2025, projecting full-year revenue of €145-155 million and EBIT of €36-38 million with a margin exceeding 25%. For 2026, the company targets revenue exceeding €200 million and EBIT above €50 million, maintaining the 25%+ margin.

The company expects to maintain its growth momentum through geographical expansion, particularly in the Nordics and UK where it's seeing the highest percentage growth in Europe, as well as in Asia and the US markets. Additionally, Shelly is continuing its transition from primarily DIY market focus to the professional segment, with the Pro channel estimated to represent 35% of revenue in 2025.

Wolfgang Kirsch, Co-CEO for Strategy & Operations, emphasized during the earnings call that Shelly's broad market presence across "safety, security, energy management" positions the company well for continued growth. Meanwhile, Dimitar Dimitrov, Co-CEO for Research & Development, highlighted the role of AI in enhancing customer experience: "AI will help to recognize what the customers want and to make sense for the customer."

With its strong financial performance, expanding product portfolio, and growing SaaS business, Shelly Group appears well-positioned to maintain its growth trajectory and meet its ambitious targets for 2025 and beyond.

Full presentation:

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