GEAR4MUSIC (HOLDINGS) PLC - Final Results

Gear4music (Holdings) plc delivered a strong FY26 investor update, reporting 30% revenue growth, a significant improvement in profitability, and continued market share gains across the UK and Europe. Revenue growth, higher average order values, and improved gross margins drove an 84% increase in EBITDA to £18.4 million, while profit before tax rose to just over £10 million. The company fulfilled a record 1.2 million orders, benefited from growth in higher-margin own-brand products, and achieved strong performance across education, showroom, and European sales channels. Strategic investments in proprietary technology, AI-powered forecasting and purchasing systems, CRM upgrades, influencer marketing, and customer engagement initiatives are expected to support future growth and operational efficiency. Gear4music also announced a major UK logistics transformation, including a highly automated distribution centre capable of handling more than 2.5 times current throughput, reducing labour intensity and increasing warehouse capacity. Net debt declined for the fourth consecutive year to £5 million, strengthening the balance sheet and providing flexibility for future investment. Management highlighted opportunities in premium product categories, own-brand expansion, AI-driven productivity improvements, and the recently launched white-glove delivery service, which could unlock additional revenue from high-value products. Trading in FY27 has started positively, with double-digit revenue growth in line with board expectations despite tougher comparatives. Overall, the results demonstrate strong company performance, improving EBITDA margins, disciplined cost control, and a clear growth strategy focused on technology, operational leverage, customer acquisition, and long-term profitable expansion.