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Shelly Group AD (XETRA:SLYG) presented its Q1 2025 trading update on May 15, 2025, highlighting stronger-than-expected revenue growth and an expanding product portfolio. The smart home technology provider reported 29% year-over-year revenue growth, exceeding its 25% guidance, while maintaining healthy profitability margins.
Quarterly Performance Highlights
Shelly Group delivered robust financial results in Q1 2025, with revenue reaching €26.5 million, up 29% from €20.5 million in Q1 2024. EBIT grew 23% year-over-year to €6.7 million, resulting in a 25.2% EBIT margin that exceeded internal planning targets. The company’s cash position improved by 11.9% compared to Q1 2024, reaching €16.7 million, with an additional €20 million overdraft facility available.
As shown in the following chart of quarterly financial performance, Shelly has maintained consistent growth over the past three years:
The company’s gross margin slightly decreased to 52.8% in Q1 2025 from 55.5% in Q1 2024, which management attributed to changes in distribution contracts and accounting practices. Despite this slight margin compression, the company’s EBIT margin remained strong at 25.2%, demonstrating efficient operational management.
Regional Growth Analysis
Shelly Group reported growth across all regions, with particularly strong performance in European markets outside the DACH region (Germany, Austria, Switzerland). While DACH remains the largest market with 46.7% of total revenue, the rest of Europe showed the strongest growth at 41% year-over-year.
The following chart illustrates the regional breakdown and growth rates:
The DACH region generated €12.8 million in revenue (up 19.1%), while the rest of Europe contributed €11.7 million (up 41.0%). Markets outside Europe, though still representing a smaller portion of overall revenue at 7.7%, grew by 34.6% to reach €2.0 million in Q1 2025.
Product Innovation Strategy
Shelly Group continues to accelerate its product innovation, releasing seven new products in Q1 2025 while updating five existing ones. The company plans to launch 40-60 new products and updates throughout 2025, including one entirely new product category.
The company’s product roadmap for 2025 shows a steady stream of new releases:
A key aspect of Shelly’s strategy is the transition to newer generation products, which typically carry higher margins. As shown in the following chart, Gen 4 products now represent 48% of the company’s innovation share, up from just 21% in 2024:
The company’s competitive positioning is strengthened by its comprehensive feature set compared to competitors. Detailed product benchmarking shows Shelly’s advantages in areas such as size, connectivity options, and integration capabilities:
Strategic Initiatives & Future Outlook
Shelly Group is expanding beyond its traditional DIY market into professional channels, reporting significant growth in its installer network. Launched in March 2024, the installer program has already attracted over 1,200 participants across Europe, with the highest concentration in the DACH region.
The company is also positioning itself as a key partner in the energy management sector, integrating with numerous solar industry players:
Customer survey results from 52,234 participants revealed that Shelly’s key differentiators include "no cloud required" (valued by approximately 45% of customers) and open protocols (important to about 41% of users):
The company’s Premium App user base has grown faster than expected, increasing by 134.4% year-over-year to 28.6 million users in Q1 2025:
Looking ahead, Shelly Group confirmed its 2025 revenue guidance and expects accelerating growth throughout the year, with projected increases of 30% in Q2, 40% in Q3, and 50% in Q4:
The company also reaffirmed its 2026 guidance, supported by ongoing product innovation, regional expansion, and growing penetration in professional markets. With a strong Q1 performance providing a buffer for the remainder of 2025, management expressed confidence in meeting or exceeding its full-year targets.
Despite the strong financial performance, Shelly Group’s stock price remained relatively stable at €37, showing only a modest 1.06% increase following the presentation. With a 52-week range of €29.70 to €75.00, the market appears to be taking a measured view of the company’s growth trajectory despite its consistent execution against stated objectives.
Full presentation:
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