A warm welcome to today's earnings call presentation for the Second Quarter 2025. My name is Andrés Martin-Birner. I'm the founder and CEO of BIKE24. Let me now 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&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 6.3%. At €80 million, 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 markets Spain, Italy, France, Benelux, plus our new markets Finland and Poland, with sales growth of also 28%, and rest of Europe 12%. It is pleasing that the newly at the end of 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 exceptionally low for an e-commerce business. Moving on to our assortment segments, our core PAC segment, parts, accessories, clothing, recorded sales growth of 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 26% for Full Bikes. In terms of inventory, we have made further progress. PAC 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. Now let us move to the financials.
Let me start by working you through the figures for the Second Quarter of 2025. Over the past five quarters in a row, we have continuously improved our growth rates. In Q2 2024, we see a 1% increase, followed by 3% in Q3 and 7% in Q4, and 18% in Q1 2025. In Q2 2025, we achieved revenue growth of 25% compared to the same quarter last year, again a significant acceleration. Let's look at the numbers in detail. In Q2 2025, we generated €80 million in revenue, the highest quarterly revenue BIKE24 has ever achieved, up from €63.8 million in the same quarter last year. Both of our main product segments, Full Bikes and PAC, grew by around 25% year-over-year. That's a remarkable achievement in itself, but Full Bikes stand 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 BIKE24. Let's take a look at our customer base. On the left, you can see a major milestone in BIKE24's history. For the first time ever, we have more than 1 million active customers. That is, customers who have placed at least one order with us in the past 12 months. We grew from 903,000- 1,022,000 this year, a clear sign of our strong appeal to new customers. On the right, you see the orders from our existing customers.
They increased from €1.108 million- €1.3238 million in the past 12 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 achieve double-digit growth rates. In the rest of Europe, where we haven't yet localized, we still manage to grow revenue by 12%. The rest of the 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 at 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 the rest of Europe, meaning countries without a localized online shop that mainly order via our .com domain, we also saw strong growth, + 12% revenue growth in Q2. This was mainly driven by improved product availability and ongoing inventory reductions across the market. As a result, customers are increasingly returning to platforms like BIKE24 that offer the full product portfolio of the bike industry. Now, let's have a look at 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 €72.2 million, slightly above last year's level, driven by an intentional build-up in Full Bikes from €16.8 million- €19 million. PAC segment inventory, in contrast, has been further optimized, going down from €55.1 million- €53.2 million. 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. 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 €19 million in inventory. Let's take a look at our free cash flow. We went down from €4.9 million in the first half of last year to €2.4 million this year. At first 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 €4.9 million 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 reached 25% revenue growth. We are returning to a highly efficient marketing level. We also saw a 0.3% 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 last year are paying off. Here alone, we improved our EBITDA margin by 2 percentage points. In total, we achieved an adjusted EBITDA margin of + 6.3% in a still challenging market. Closing with that, I will conclude the business update. Following an already successful first quarter, we were able to increase revenues and profit in the Second Quarter. The turnaround that started in Q2 last year has gained even more momentum, outperforming expectations with 25% revenue growth. 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 a turnaround. The regained 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. The inventories were at around €72 million, now at a healthy level, driven by optimized purchasing and the great success 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 sales growth, are very promising. To finish, let's look ahead. With a significant growth in Q2 and the promising results of the last few weeks, we anticipate a revenue growth between €248 million and €261 million 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 million and €12.1 million.
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 macro-economic 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.
Yes, thank you very much. We now get to the Q&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. 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. We got two participants already raising your hand. Wolfgang Specht, you should be able to speak now.
Yes, hello, good afternoon, and thanks, Andrés, for the explanation. I would have three questions to start with. First, on the assortment of the stock keeping units you're currently holding, is the figure broadly stable to what you had, let's say, a year ago, or are you really broadening the assortment? That would be interesting. Second question is the increase in 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 12 months, or are that really new names with new addresses? Third, do you see any upside on purchasing conditions? I mean, most of the equipment, both Full Bikes and tech, is coming from the Asian area, a lot from China. Do you expect any deals you can make? Maybe that, let's say, shipping into other world regions like the U.S.
might get more expensive over time. That would be helpful.
Okay, thank you for your question. I start with your questions regarding the assortment. Our SKU count 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. We do not grow in SKU in absolute numbers. The main reason for our growth is that our availability is good, that the SAP implementation is paying off. The reordering process is better than last year. This is one of the main drivers of our results in the Second Quarter. The second question was regarding, as I understand you correctly, our active customer base. We see, of course, a lot of new customers from all markets. That is 100% clear. Of course, also a little part of our active customer base is from existing customers, but also new customers have increasing repurchasing quotes.
This is seen in our results. The last question is regarding tech and bikes, and especially the question to maybe the Asian situation or the tariff situation, what we see. To be honest, we see an unbroken offering in Full Bikes. We see there's also still overstock issues in the market. I would say in the tech segments, it's a little bit similar and comparable to last year. It is very clear that we are one of the biggest players in Europe. We have very good relationships with the manufacturers and also all the distributors. That is the reason why we have a very high level of offering from manufacturers or distributors that they come to us and offering clearance deals. There is no big change to last year. We do not see also a big change regarding all these things regarding the tariff situation in the U.S.
Okay, thanks a lot.
Thank you very much. We move on to the next participant with a raised hand. Ingo Schmidt, you should be able to place your question, please.
Hello, this is Ingo Schmidt from Montega AG. First of all, congratulations on the excellent Q2 results. There was certainly a lot of momentum there. 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? Is this now the sustainable growth path we had hoped for? What does that mean for 2026 and beyond? Are double-digit revenue growth rates realistic?
Yeah. Thank you for your question. To be honest, and what I mentioned in my presentation, we see double-digit growth rates also in July and August. On the other hand, when you see 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.
I would say we didn't do full speed last year because of this implementation. This is a little thing, the catch-up effect. On the other hand, the market is good with us, I would say. When you see our assortments and our historical strengths, it's first our core segment, the enthusiasts. Also, when you see the assortment, our core focus is road and also gravel. This is a really tailwind in the actual situation. I would say it's a little bit the weakness of offline competitors. The main thing I also mentioned before is the higher availability because of our better processes and the SAP implementation. We see the July and August figures. We are very promising also figures for the second half.
On the other hand, we are a little bit careful regarding the second half because of the tariff trade discussions, macro-economic effects, and also the German consumer sentiment. That's the reason why we are a little bit careful. When we look ahead for also 2026, as you know, it was always our ambition to grow. Our ambition is also for 2026 and also the coming years to not only gain market shares, we are also looking for a double-digit growth rate in revenues.
Okay, thank you.
To be profitable. This is the main point.
Perfect. Thank you very much.
Thank you very much. We move on to one participant with a question in our chat box. I'll read this out for you. For Full 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 onto your suppliers?
Thank you for your question. Of course, when you see now our offering, we are, yeah, it's sale time. It naturally starts in July and August. That is the reason why you see heavy discounts in bikes. On the other hand, this is what I mentioned in my presentation, that we used our strengths, our financial strengths, and also the team did great success regarding that we are looking also for clearance deals. Of course, clearance deals have better conditions. That is the reason why we can offer also attractive prices, really lower than RRP. On the other hand, when I look to our gross margin level, it is comparable to last year. The main reason is that we had many, many good offers from manufacturers. In this point, or in this case, it helps that we have such good relationships to many, many different manufacturers and distributors.
Okay, thank you very much. There is another question in the chat box. I'll read this out in German. [Foreign Language]
[Froreign Language] Sorry, in English, I will answer in English. The Goodwill depreciation was €4.8 million, is when I see it correct? Yes. The depreciation and amortization, and also, as I mean, the additional was in the first half, €3.4 million.
Thank you very much. There is a question with a raised hand. Please state your full name when I take you. Thank you.
Hi, this is Mark from JMS Invest. Can you hear me?
Yes, we can hear you.
Okay. I have actually two questions. One question is, you know, to the market growth or market in general. What was the market growth in Q2 or in the first half? You're probably in DACH, I assume, is the most relevant figure. What is your market share, more or less?
You mean the whole market share or the market?
Market share in DACH or, you know, yeah. I'm just asking how different is your growth compared to the market growth? Was there significant market growth?
Yeah, as we know, it's a little bit the assumption that our market share in the online tech business in the GSA region is around 15%. To be honest, we do not have actual new figures about the market situation in Q1 and Q2 this year. I think we have to take a little bit of time to see what will happen there.
What would your guess be? I mean, the market, did it grow like 5%, 10%, 0%? I mean, compared to your 27%? I mean, just to.
I would expect that the growth rate would be around 0%.
Around 0%.
We see what I mentioned. One of the reasons for our growth rates is the weakness of offline retailers. They decreased their assortment, and this is the reason why we benefited a little bit from that. They are focusing on the main things, and for them, it's 90% the Full Bikes or the complete bikes. This is the main reason why they have, I would say, the assortment is less than last year for the offline retailers.
Basically, the supply of the market is still relatively good, with a good, I mean, inventories, which are still not, I mean, which are destocked, but maybe not fully destocked. In certain areas, there is no full assortment anymore. The clients, I mean, are they in a situation where they're kind of destocking it through now? They did a lot of purchases during the COVID time. Now, the rate, or they had a lower period for a couple of years, and now they start buying, or is it more, you know, kind of a schnäppchen situation?
Yes, that's correct. What we saw, the main or the first products where we had bigger problems, when you see our figures, was in Q1, Q2, Q3, 2022, when the Ukraine war started. The consumer sentiment went down, and the first things that customers didn't buy were helmets, shoes, clothing. They waited a little bit to see what would happen. Now the segments have a little bit, or I would say, a comeback. This is what we also expect for Full Bikes when the overstock issues are done. We have also, I would say, a good and high demand back. Then we will see maybe also a catch-up effect.
There is real demand there because they need new things, new helmets, new shoes.
Correct. They waited a little bit in 2022 and 2023. Now they are coming back, and we see this especially in our figures. To be honest, it's a little bit too early, and we do not have the full visibility for the market, especially also in whole Europe. It's a little bit too early.
Okay. Just the second question will be on the margins. I mean, you know, you had good growth, but the gross margins stayed basically flat over the last year. That means that you probably offered good prices to generate the sales growth. What is the strategy going forward? Is it to get back to a kind of a 30% gross margin again, which you had before Corona, and which then also would allow someone to get to maybe almost an EBITDA margin of 8% or 10% or so? Is the strategy more to go for volume and market share?
To be honest, today it's both. We are looking a little bit at what are the chances and opportunities now in the market. This is what we are looking for, to be honest. We use it on the level of operational leverage. This is what we are looking today for. To be honest, we need really a clean and natural market like we had it before Corona. Is it possible to have 29% or 30% of gross margin? Today, it's not possible, to be honest. We are looking for, but we use, but today we are using opportunities to grow. This is, I would say, a little bit of a change in priority to using operational leverage.
Okay. Super. Thank you.
Thank you very much. We received another question in the chat box from Tim Jeck from Entrepreneurial Investment Partnership. His question, can you help us understand at what point you can start reinvesting in the business, software, and offer customers an app or real value add?
Sorry, I didn't hear the first part of the question. I didn't get it.
The first was just reading out who's the investor. Tim Jeck is it from Entrepreneurial Investment Partnership? His question was, can you help us understand at what point you can start reinvesting in the business and offer customers an app or real value add?
The market is very dynamic. This is what I mentioned before when I answered the question because of what we see the situation today regarding the gross margin situation. 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. I think this is the result of the problems of the last three years. On the other hand, we see strong demand in the market, especially in the premium enthusiast segment and also especially in the road bike and gravel segment, where we are very strong in that case. I would say to reinvest or to invest for the coming years is now when you see our website, that we invest in our website, that we are looking at what our consumers are looking for. We do not stand still.
We invest in many, many different things. Also, as you know, we started our localization in Poland and Finland. It's not finished, our path back to success. We invest a lot in many, many things, and we won't stop this.
Thank you very much. We did not receive any further questions in the meantime. There is no participant with a raised hand for a personal question. I would say we slowly get to the end of today's earnings call. Before we do that, I would mention with a glance at the investment calendar of the company that you do not have to wait until the Q3 results. Yes, until November 12, first in September at the Berenberg and Goldman Sachs German Corporate Conference in Munich. If you really don't want to wait to see the company representatives, you can get in touch with them at the Hamburg Investors Day, the hit on August 27 in Hamburg. Having said that, I'll give back the word to Andrés for a short goodbye. From my side, thank you very much. See you all, guys, until the next call.
Thank you again for your attention. Thank you for your time. I hope we will see, or I see you maybe in Hamburg, in Munich, or at the latest for our Q3 2025 results. Thank you very much, and goodbye.