Earnings call transcript: Bike24’s Q2 2025 revenue hits record with 25% growth

Bike24 Holding AG (BIKE) reported its highest-ever quarterly revenue for Q2 2025, reaching €80 million, marking a 25% year-over-year growth. The company’s stock responded positively, with a 7.19% increase, closing at €3.13. The growth was driven by strong performance in core product segments and strategic market expansion. According to InvestingPro data, the company has achieved impressive returns with a 165% price increase over the past six months, though it currently trades at a high EBITDA multiple of 112x.

Key Takeaways

• Record revenue of €80 million, a 25% increase year-over-year.
• Stock surged by 7.19% following the earnings announcement.
• Strategic market expansions and product innovations fueled growth.
• Performance marketing costs were exceptionally low at 1.2%.
• Revenue guidance for 2025 set at €248 million to €261 million, with expectations at the upper end.

Company Performance

Bike24’s performance in Q2 2025 was robust, with the company achieving its highest quarterly revenue. The growth was largely attributed to strong sales in parts, accessories, and full bikes, despite challenging market conditions. The company’s strategic focus on market localization and operational efficiency improvements played a crucial role in its success. Double-digit growth was observed across all strategic European markets, particularly in the GSA region and localized markets like Spain and Italy.

Financial Highlights

• Revenue: €80 million, up 25% year-over-year.
• Adjusted EBITDA margin: 6.3%.
• Gross margin remained flat compared to the previous year.
• Inventory-to-sales ratio returned to pre-pandemic levels at 29%.

Market Reaction

Following the earnings announcement, Bike24’s stock saw a significant rise, closing up 7.19% at €3.13. This places the stock near its 52-week high of €3.19, reflecting investor confidence in the company’s growth trajectory and strategic initiatives.

Outlook & Guidance

Looking ahead, Bike24 projects its 2025 revenue between €248 million and €261 million, anticipating to hit the upper end of this range. The company also expects an adjusted EBITDA between €7 million and €12.1 million. While optimistic about continued double-digit growth, Bike24 remains cautious about macroeconomic conditions and consumer sentiment.

Executive Commentary

CEO Andreas Martin Berner emphasized the company’s growth momentum: "We have now been growing for five consecutive quarters." He also highlighted future ambitions: "Our ambition is also for 2026 and the coming years to not only gain market shares but also achieve double-digit growth rates in revenues."

Risks and Challenges

• Macroeconomic uncertainties could impact consumer spending.
• Supply chain disruptions may affect inventory management.
• Competition from offline retailers, despite current weaknesses.
• Potential market saturation in the enthusiast bike segment.
• Currency fluctuations impacting international sales.

Q&A

During the earnings call, analysts inquired about inventory optimization strategies and customer base growth, which now includes 1,022,000 active customers. The management addressed market conditions and potential future growth, explaining their pricing strategies and margin considerations.

Bike24’s Q2 2025 results underscore its strong market position and strategic initiatives, setting a positive tone for the remainder of the fiscal year.

Full transcript - Bike24 Holding AG (BIKE) Q2 2025:

Andreas Martin Berner, Founder and CEO, BIKE24: A warm welcome to today’s earnings call’s presentation for the second quarter twenty twenty five. My name is Andreas Martin Berner. I’m the founder and CEO of BIKE twenty four. Let me now to start with the general update on the second quarter of this year, followed by the business update and finishing with a general summary, the confirmation of our 2025 guidance, and the q and a session.

The second quarter was again very successful overall and once more clearly shows the positive trend. Despite a difficult market environment, we achieved a revenue growth of 25% and an adjusted EBITDA margin of plus 6.3%. At €80,000,000, it was the quarter with the highest revenue ever achieved, and we have now been growing for five consecutive quarters. Our cost discipline, our efficient processes, and our attractive and highly available product assortment are the main reasons for the almost doubled adjusted EBITDA alongside the jump in revenues. In particular, the continuous improvement of our offering for our customers led to strong growth in all core markets.

GSA, almost 28%, the localized market, Spain, Italy, France, Benelux, plus our new markets Finland and Poland, with sales growth of also 28%, and rest of Europe plus 12%. It is pleasing that the newly, at the February, localized markets of Finland and Poland grew disproportionately in the second quarter as expected, recording a 46% increase in revenues. I would particularly like to emphasize that we achieved the results with performance marketing costs of 1.2%. This is exceptional low for an ecommerce business. Moving on to our assortment segments.

Our core pack segment, parts accessories closing, recorded sales growth of plus 25%, which once again demonstrates the importance of the expert enthusiast bike market. On the other hand, despite a difficult market environment, we achieved unexpectedly high revenue growth of plus 26% for full bikes. In terms of inventory, we have made further progress. Pack inventory was reduced slightly compared to June 2024, while the full bike inventory increased due to attractive orders. Inventory levels are now at a healthy level, driven by optimized purchasing and the SAP implementation.

A further optimization is expected going forward as these changes continue to take full effect. Looking ahead, we confirm our 2025 guidance and expect revenue and adjusted EBITDA to be at the upper end of the range. We therefore expect the positive trend of the last few quarters to continue, and we consider the results of the last few weeks with double digit sales growth to be promising. So now let us move to the financials. Let me start by working you through the figures for the 2025.

Over the past five quarters in a row, we have continuously improved our growth rates. In q two twenty twenty four, we see a 1% increase, followed by 3% in q three and seven percent in q four and eighteen percent in q one twenty twenty five. In q two twenty twenty five, we achieved revenue growth of 25% compared to the same quarter last year. Again, significant acceleration. Let’s look at the numbers in detail.

In q two twenty twenty five, we generated €80,000,000 in revenue, the highest quarterly revenue by ’24 has ever achieved, up from €63,800,000 in the same quarter last year. Both of our main product segments, full bikes and pack, grew by around 25% year over year. That’s a remarkable achievement in itself, but full bikes stepped out even more considering the challenging market environment with ongoing overstock and heavy discounting. In this context, attracting more and more customers to purchase such an expensive and technically sophisticated product on our platform is great. Our success is fueled not only by our attractive product assortment, but also by our scale and long standing partnerships with manufacturers.

These relationships enable us to secure highly attractive special batches, which we can offer at an outstanding price performance ratio, creating compelling reasons for customers to choose BIKE twenty four. Let’s take a look at our customer base. On the left, you can see a major milestone in Baked Bike twenty four’s history. For the first time ever, we have more than 1,000,000 active customers. That is customers who have placed at least one order with us in the past twelve months.

We grew from 903,000 to 1,022,000 this year, a clear sign of our strong appeal for new to new customers. On the right, you see the orders from our existing customers. They increased from 1,108,000 to 1.3 two three eight million in the past twelve months. This shows that we are continuing to successfully encourage our customers to make repeat purchases, demonstrating the strength of our customer relationships and the relevance of our assortment. Looking at regional performance, we see a broad based growth pattern.

In all strategically important European markets, we achieved double digit growth rates. In the rest of Europe, where we haven’t yet localized, we still managed to grow revenue by 12%. The rest of world segment remains in decline, but with just around 2% of total revenue, it has a minor impact on overall performance. Let’s now take a closer look to our key regions. First, let’s look at the drivers in our GSA region.

The 28% revenue growth was supported by an increase in both new and existing customers. The average revenue per customer was relatively flat, and the number of active customers increased by 29% year over year. Same picture in our localized markets, France, Italy, Spain, Benelux countries, and Poland and Finland. The number of active customers increased by 27%, while average revenue per customer remained more or less stable. As a result, we achieved 28% revenue growth in this region.

In rest of Europe, meaning countries without a localized web shop that mainly order via our .com domain, we also saw strong growth, plus 12% revenue growth in q two. This was mainly driven by improved product availability and ongoing inventory reductions across the market. As a result, customers are increasingly returning to platform like bike 24 that offer the full product portfolio of the bike industry. Now let’s have a look to the balance sheet and the cash flow development. Let’s move on to our inventory situation.

We have continued our inventory optimization journey by making targeted investments in full bikes to meet the still very high demand in this category. On the left, you can see that our total inventory stands at €72,200,000, slightly above last year’s level, driven by an intentional buildup in full bikes from 16.8 to €19,000,000. Tech inventory, in contrast, has been further optimized, going down from 55.1 to €53,200,000. Looking at the inventory to sales ratio on the right, we are now back at 29%, a very healthy level that we had before the pandemic. And with the recent implementation of SAP and our updated purchasing strategy, we expect to unlock further optimization potential in the months ahead.

In short, we are keeping our inventory lean while making sure we have the right products available in exactly the segments where demand is strongest. As a reminder, at the peak of the crisis in the bicycle market, we held over €90,000,000 in inventory. Let’s take a look at our free cash flow. We went down from 4,900,000 in the first half of last year to €2,400,000 this year. At first glance glance, this might seem below expectations, but it’s important to remember that last year’s figure was positively influenced by a one off effect on our trade working capital.

At the beginning of 2024, we still had overstock in certain categories, which we were able to sell down over the course of the year, generating €4,900,000 in additional liquidity. In 2025, however, our inventory was already in a healthy position from the very start, so the special effect does not occur, resulting in a lower but very positive normalized cash flow figure. Let’s take a look at our operating results. Our gross margin is flat comparable to last year, a notable achievement given the still challenging market environment. Not to forget here, we grew revenue by 25% underlying the competitiveness of our pricing strategy and its success in attracting new customers.

We have kept our marketing strategy conservative With just 1.2% spent on performance marketing, we we reached 25% revenue growth. We are returning to a highly efficient marketing level. We also saw a point three percentage point increase in selling costs driven by disproportionate growth in the localized markets, a region with higher shipping costs compared to the German speaking market. One of the biggest levers was the reduction in personnel expenses. The measures we introduced in November are paying off.

Here alone, we improved our EBITDA margin by two percentage points. In total, we achieved an adjusted EBITDA margin of plus 6.3% in a still challenging market. Closing with that, I will conclude the business update. Following an already successful force first quarter, we were able to increase revenues and profit in the second quarter. The turnaround that started in q two last year has gained even more momentum, outperforming expectations with 25% revenue growth.

And it shows again that our focus on profitability is paying off. The fact that we were able to increase sales in all important focus markets is a good sign of turnaround. And we gained strength in our core market GSA, in particular, gives us confidence for the coming quarters. As you know, localization is an important part of our three pillar strategy. We are also pleased to report the highest sales of bikes we have ever had in the second quarter.

Inventories were at around €72,000,000, now at a healthy level driven by optimized purchasing and the great success, and that is accompanied by significantly higher sales and improved product availability. Before we come to the confirmation of our guidance, the first results in July and August, which showed double digit growth sales growth are very promising. To finish, let’s look ahead. With a significant growth in q two and the promising results of the last few weeks, we anticipate a revenue growth between 248,000,000 and €261,000,000 for 2025. We are currently assuming that we will end up at the upper end of the guidance.

We also confirm our guidance for adjusted EBITDA of between €7,000,000 and €12,100,000. At present, we also assume that we will end up at the upper end of the range. As you can imagine, our guidance is based again on the assumption that both the macroeconomic environment and also the consumer sentiment will not deteriorate significantly. Now I would like to thank you for your attention, and I’m open for your questions.

Moderator/Operator: Yes. Thank you very much, and we now get to the q and a session. For a dynamic conversation, we kindly ask you to ask questions via the audio line. To do so, click on the raise your hand button. If you have dialed in by phone, please use the key combination star nine followed by star six.

And if you, however, are not able to speak freely, you can place your questions in the chat box. However, we prefer to talk to you in person. So we got two participants already raising your hand. Wolfgang Spech, you should be able to speak now.

Wolfgang Spech, Analyst/Participant: Yes. Hello. Good afternoon, and thanks, Anders, for the explanation. I would have three questions to start with. First, on assortment of the stock keeping units you’re currently holding.

Is the figure broadly stable to to what you had, let’s say, a year ago, or are you really broadening assortment? That would be interesting. Second question is, the increase on your active customers. Where are these customers coming from? Are these, let’s say, returning customers that have not done a deal in the last twelve months, or are are that really, new names with new addresses?

Addresses? And third, do you see any upside on purchasing conditions? I mean, most most of the equipment, both full bikes and tech is coming from from the Asian area, a lot from from China. Do you expect any deals you can make maybe that, let’s say, shipping into other world regions like US might get more expensive over time? That would be helpful.

Andreas Martin Berner, Founder and CEO, BIKE24: Okay. Thank you for your question. Yeah. I start with your questions regarding the assortment, our SKU level. Our SKU level in absolute numbers is a little bit less than last year.

I don’t know exactly the percentage, but it’s a little bit less than last year. So we do not grow in in in SKU in absolute numbers. But the main reason for our growth is that our avail availability is is good, that the SAP implementation is paying off. So the reordering process is better than last year. This is one of the main main driver of of of our results in the in the second quarter.

The the second question was regarding, as I’m when I understand you correct, our active customer base. So we see, of course, yeah, a lot of a lot of new customers from from all markets that is that is 100% clear. And, yeah, but, of course, also is a little part of our active customer base is from existing customers, but also new customers are in have increasing repurchasing quotes. This is seen in our, yeah, in our results. And the last questions regarding pack and bikes and especially the question to maybe Asian situation or the tariff situation, what we see.

To be honest, we see it in in an unbroken, yeah, offering in in full bikes. So so that we see there’s also, yeah, still overstock issues in the market. And I would say in the in the pack segments, it’s a little bit similar and comparable to last year. But it’s very clear that we, yeah, we are one of the, yeah, of the biggest players in in Europe. So and we have very good relationships to the manufacturers and also all to all to distributors, and that is the reason why we have, yeah, very high level of offering from manufacturers or distributors that they come to us and and, yeah, offering clearance deals.

So there’s no big change to last year, and we do not see also a, yeah, big change regarding all these things, yeah, regarding the tariff situation in The US.

Wolfgang Spech, Analyst/Participant: Okay. Well,

Moderator/Operator: thank you very much. And we move on to the next participant with a raised hand. Ingo Schmidt, you should be able to place your question, please.

Ingo Schmidt, Analyst, Montego AG: Hello. This is Ingo Schmidt from Montego AG. First of all, congratulations on the excellent q two results. There was certainly a lot of momentum there. And now as analysts, we always need to look a bit further ahead and are, of course, interested in what lies before us.

Therefore, the following questions. How far does visibility extend beyond 2025? This is now the sustainable grow growth path we had hoped for, and what does that mean for 2026 and beyond? Double digit revenue growth rates realistic?

Andreas Martin Berner, Founder and CEO, BIKE24: Yeah. Thank you for your question. To be honest, and what I’m what I mentioned in in my presentation that we see double digit growth rates also in July and August. And on the other hand, we see yeah. When when you see the the first quarter and the second quarter, the reasons behind our growth rates or great growth rates is a little bit a catch up effect because of the SAP introduction last year.

So we I would say we didn’t do full speed last year because of this implementation. This is a a little thing, the catch up effect. On the other hand, the market is is good with us, I would say. So when you see our assortments and our historical strengths, so it’s first our core segment, the the enthusiasts. And also when you see the assortment, our, yeah, our core focus is is road and also gravel.

And this this is really a tailwind in the in the actual situation. And on the other hand, I would say it’s a little bit the weakness of of offliners of of offline competitors. And and the main thing I also mentioned before is is the higher availability because of our better processes in the SAP implementation. So we we are we see it, the July and August figures. We are very promising also figures for the for the second half.

But on the other hand, we are a little bit careful regarding the second half because of the tariff trade discussions, macroeconomic effects, and also the German consumer sentiment. So that’s the reason why we are a little bit careful. But when we look ahead for also 2026, as you know, it it was always our ambition to to grow, and our ambition is also for 2010 ’26 and also the coming years to to not only to gain market shares, we are also looking for double digit growth rate in revenues.

Ingo Schmidt, Analyst, Montego AG: Okay. Thank you.

Andreas Martin Berner, Founder and CEO, BIKE24: So and profitable and to be profitable. This is the main point.

Ingo Schmidt, Analyst, Montego AG: Perfect. Thank you very much.

Moderator/Operator: Well, thank you very much. And we move on to one participant with a question in our chat box. I’ll read this out for you. For complete bikes, you currently offer high discounts compared to RRP. Was this stock purchased under regular conditions, or have you already been able to pass some of the price pressure on to your suppliers?

Andreas Martin Berner, Founder and CEO, BIKE24: Yeah. Thank you for your for your question. Of course, when you see now our offering, we are yeah. It’s it’s it’s sale time. It’s yeah.

Naturally, it starts in July and and August. So that’s that’s that is the reason why you see heavy discounts in in bikes. But on the other hand, and this is what I mentioned in my presentation that we used our strengths, our financial strengths, and and and also the the team did great success regarding that we are looking also for clearance deals. And, of course, clearance deals have better conditions, and that is that is the reason why we can offering also attractive prices really lower than RRP. And on the other hand, when I look to our gross margin level, it is it is comparable to last year.

And that yeah. The main reason is that we that we had many, many good offers from from manufacturers. And here in this point or in this case, it helps that we have such good relationships to, yeah, to many, many different manufacturers and distributors.

Moderator/Operator: Okay. Thank you very much. There is another question in the chat box. I’ll read this out in German.

Andreas Martin Berner, Founder and CEO, BIKE24: Sorry. In English, I will answer in English. The good will depreciation or was 4,800,000.0 as when I when I see it correct. Yes. And the depreciation and amortization and also, as I mean, the the the additional was in the first half, €3,400,000.

Moderator/Operator: Okay. Thank you very much. And there is a question with a raised hand. Please state your full name when I take you. Thank you.

Markus, Investor, GMS Invest: Hi. This is Markus from GMS Invest. Can you hear me?

Moderator/Operator: Yes. We can hear you.

Markus, Investor, GMS Invest: Okay. I have actually two questions. One question is to the market growth or market in general. What was the market growth in Q2 or in the first half? And you’re probably in DACH, I assume, is the most relevant figure.

And what is your market share, more or less?

Andreas Martin Berner, Founder and CEO, BIKE24: Mean do mean the whole market share or the

Markus, Investor, GMS Invest: market share? Market share in talk or, you know yeah. I mean, hey. You know, I’m I’m I’m just asking how the how different is your, growth compared to the market growth? Was there significant market growth?

Andreas Martin Berner, Founder and CEO, BIKE24: Yeah. So as as we as we know, but it’s it’s a little bit the assumption that our market share in the online tech business in the GSA region is around 15%. And but to be honest, we do not have actual new figures about the market situation in q one and q two this year. So this this, I think, we have to take a little bit time to see what will happen there.

Markus, Investor, GMS Invest: But what would would your guess be, I mean, the market, did it grow, like, 5%, 10%, zero? I mean, compared to your 27%. I mean, just to I would expect

Andreas Martin Berner, Founder and CEO, BIKE24: that the that the that the growth rate would be around zero. Yeah.

Markus, Investor, GMS Invest: Around zero.

Andreas Martin Berner, Founder and CEO, BIKE24: Of the market. Yeah. So we see what what I mentioned. What is one of the reason of our growth rates is the weakness of of offline retailers. Yeah.

So they they decreased this their assortment, and this is the reason why we benefit a little bit from that. So they are focusing on on the main things. And for for them, it’s 90% the full bikes or the complete bikes. This is the main reason why they had they have yeah. I would say the the assortment is is less than last year in in the for the offline retailers.

Markus, Investor, GMS Invest: So basically, the the supply of the market is still relatively good with, with good, I mean, inventories, which are still not I mean, which are are destocked, but not maybe not fully destocked. But in certain areas, there is no full assortment anymore. And and the and the clients, I mean, are they in a sit are they in a situation where the they’re kind of destocking you through now? So they, you know, they had, they did a lot of purchases during the COVID time. Now the rate or they had, you know, a lower period for a couple of years, and now they start buying, or or is it more, you know, kind of a situation?

Or

Andreas Martin Berner, Founder and CEO, BIKE24: That’s correct. So what what we saw, did the main or the the the first products where we had big bigger problems when you see our figures was in q one, q two, q three, 2022 when you when Ukraine was started. And and so the the consumer send consumer sentiment went down, and the first what what customers, yeah, that didn’t buy worse helmets, shoes, clothing. So they waited a little bit what what will happen. And then and now the segments are have a little bit, I would say, come back.

And and and this is what we also expect for for full bikes when the overstock issues are are done. And and we have also, yeah, I would say, good good good and high demand back, and then and then we will see maybe also a catch up in effect.

Markus, Investor, GMS Invest: So there is real demand there because they need new things, new helmets, new shoes.

Andreas Martin Berner, Founder and CEO, BIKE24: Right. They waited a little bit in 2022 and 2023, and now they they are coming back. And and and we see this especially in our figures. But to be honest, it’s it’s a little bit too early, and and we do not have the full visibility for the for the market and especially also in whole Europe. That’s a little bit too early.

Markus, Investor, GMS Invest: Okay. Just the second question will be on the margins. I mean, had good growth, but the gross margin stayed basically flat over the last year. So that means that you probably offered good prices to generate this the sales growth. I mean is what is the strategy going forward?

I mean is it to get back to a kind of a 30% gross margin again, which you had before corona and then which then also would would allow someone to get to a maybe almost, you know, EBITDA margin 8% or 10% or so? Or or is it is the strategy more to go for volume and market share? To be honest gross margin.

Andreas Martin Berner, Founder and CEO, BIKE24: Yes. Yes. To be honest, it’s it’s today, it’s both. So we are we are looking a little bit what are the chances and opportunities now in the market, and and this is this is what what we what we are looking for, to be honest. And we use it on on on the level of operational leverage.

This is what what we what we are looking today for. And to be honest, we need really a clean and natural market like we had it before corona, and then this is possible to have 29 or 30% of gross margin. But today, it’s not it’s not possible, to be honest. Yeah. So we’re looking for, but we use but today, we are using opportunities to grow.

This is, I would say, a little bit change in priority to using operational leverage.

Markus, Investor, GMS Invest: Okay. Super. Thank you.

Moderator/Operator: Thank you very much. And we received another question in the chat box from Tim Yak from Entrepreneurial Investment Partnership. His question, can you help us understand at what point you can start reinvesting in the business dash software and offer customers an app or real value add?

Andreas Martin Berner, Founder and CEO, BIKE24: Can you sorry. I didn’t hear the first the first the first part of the question. I didn’t I didn’t

Moderator/Operator: hear it. The first was just reading out who’s the investor. Tim Yak is from Entrepreneurial Investment Partnership. And his question was, can you help us understand at what point you can start reinvesting in the business and offer customers in app or real value app?

Andreas Martin Berner, Founder and CEO, BIKE24: It’s so we see of course, the market is very dynamic, and this is what I mentioned before when I when I, yeah, answered the question because of what we see the situation today regarding the gross margin situation. So we see a lot of players and competitors, also manufacturers, bike manufacturers. Maybe you read it that some left the markets, some bankruptcies in the market. And I think this is the, yeah, the result of the of the problems of the last three years. But on the other hand, we see we see strong demand in the market, especially in the premium enthusiast segment and also especially in the in the road bike and and gravel segment where we are very strong in in that case.

So I would say to to reinvest or to invest for the coming years is is now when you when you see our our website, that we invest in our website, that we are looking what what our consumers are looking for. So we do not stand still. So we we invest in, yeah, in many, many different things. Also in our as you know, we started our localization in in in Poland and Finland. So we we we we yeah.

It’s it’s not finished. Our our path back to success, so we invested a lot in in many, many things, and we we won’t stop this.

Moderator/Operator: Thank you very much. And we did not receive any further questions in the meantime, and there’s no participant with a raised hand for a personal question. So I would say we slowly get to the end of today’s earnings call. But before we do that, I would mention with a glance at the investment calendar of the company And you do not have to wait until the q three results. Yes.

Until November at the Berendecken and Goldman Sachs German corporate conference in Munich, Or if you really don’t wait to see the company representatives, you can get in touch with them at the Hamburg Investors Day that hit on August 27 in Hamburg. So said that, I’ll give back the word to Andres for a short goodbye. And from my side, thank you very much. See you all, guys, until the next call.

Andreas Martin Berner, Founder and CEO, BIKE24: Yeah. Thank you again for your attention. Thank you for your time, and I hope you will see or I see you maybe in Hamburg, in Munich, or at the latest for our q three twenty twenty four five results. Thank you very much, and goodbye.

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