This article first appeared on GuruFocus .
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Organic Revenue Growth (Group):Negative 4% for continuing operations in Q2.
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Adjusted EBITA:DKK110 million, with an adjusted EBITA margin of 5%.
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One-off Costs:DKK74 million in the quarter, all cash costs, mainly related to the carve-out of the hearing business.
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Free Cash Flow (ex-M&A):Negative DKK616 million, reflecting temporary working capital increase from in-sourcing activities.
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Net Interest-Bearing Debt:DKK9.6 billion.
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Enterprise Organic Revenue Growth:Negative 7% in total, or negative 3% excluding FalCom.
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Enterprise Gross Profit:DKK891 million, with a gross margin of 57.2% (up from 56.1% in Q2 2025).
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Enterprise Divisional Profit:DKK483 million, with a divisional profit margin of 31% (down from 34% in Q2 2025).
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Gaming Revenue:DKK630 million, with 5% organic revenue growth.
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Gaming Gross Margin:39.2%, up from 34% last year.
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Gaming Divisional Profit Margin:15%, up from 12.2% last year.
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FY26 Adjusted EBITA Margin Guidance:Upgraded to 9% to 10%.
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FY26 Revenue Guidance:Narrowed towards the lower half of the initial range.
Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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GN Store Nord AS ( GGNDF ) upgraded its adjusted EBITA margin guidance for 2026, reflecting healthy gross margin improvements and a clear path to the 9%-10% target.
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The launch of ReSound Sensia, the world's smallest AI hearing aid, strengthens the hearing portfolio and has received encouraging initial customer feedback and pre-orders.
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The Evolve3 portfolio expansion, covering 50% of the enterprise business, is driving strong sell-out growth in premium headsets and setting the stage for a return to growth in H2 2026.
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SteelSeries achieved the number one global brand position in gaming headsets, supported by strong market share gains and successful product launches like the Nova Pro Omni.
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The planned sale of the hearing business to Amplifon is on track for closing by end of 2026, with proceeds expected to enable significant shareholder distributions through buybacks and dividends.
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Gross margins improved strongly in Q2 across both Enterprise and Gaming, driven by pricing discipline, product mix, and lower tariffs, with expectations for continued strength in H2.
Negative Points
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GN Store Nord AS ( GGNDF ) narrowed its 2026 revenue guidance to the lower half of the range, citing muted market conditions and reduced upside scenarios, particularly in the FalCom defense business.
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Enterprise organic revenue declined 7% in Q2, with EMEA continuing to show weakness, though with signs of improvement; excluding FalCom, growth was still negative at 3%.
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Free cash flow was negative DKK616 million in Q2 due to temporary working capital increases from in-sourcing logistics, which is expected to normalize later in the year.
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The hearing business faced significant headwinds from a major US retailer reducing supplier count, impacting growth, though the company expects a rebound with the Sensia launch.
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Gaming mice sales were challenged in Q2 due to an aging product portfolio, and the company adjusted its full-year gaming outlook to the lower end, reflecting a muted consumer environment.
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The company expects a back-end-loaded year with Q3 as a turning point, implying continued near-term revenue pressure and uncertainty around channel inventory levels in EMEA.
Q & A Highlights
Q: What are the risks to the remaining 20% of enterprise business outside the core headset portfolio, and how will tariff refunds affect pricing? Additionally, what is the impact of Chinese competitors on a global scale? A: CEO Peter Karlstromer addressed the portfolio, noting that the new Evolve3 products address half of the enterprise business. The remaining portfolio includes older corded and desk products, which will be refreshed over the coming year. Video and frontline worker segments performed well. Regarding competition, market share is stable, and the company sees opportunities to regain share with new products. CFO Soeren Jelert confirmed that tariff refunds are expected in H2 and will not impact current pricing as the refreshed portfolio is not linked to old tariffs.
Q: What has changed in the guidance since May, and what is embedded for EMEA and FalCom? Also, what gives confidence in profitability improvement after adjusting for the gaming provision? A: CEO Peter Karlstromer explained that the guidance change reflects upside scenarios, particularly in FalCom, which will likely shift to 2027. EMEA is expected to turn to low growth in H2, driven by new product launches and reduced channel inventory headwinds. CFO Soeren Jelert noted that Q2 gross margin improvements confirm Q1 was a one-off, with enterprise margins returning to normal levels. Gaming margins are expected to remain in the 35%-40% range, supporting full-year profitability.
Q: Why was the gaming outlook reduced despite the confirmed GTA VI launch, and what is the status of the hearing business carve-out? A: CEO Peter Karlstromer stated that the gaming guidance reduction is market-related, reflecting muted H1 conditions, but the company expects constructive H2 growth driven by GTA VI and new product launches. On the carve-out, progress is on track for closing by year-end, with both the carve-out process and regulatory approvals proceeding as planned.
Q: Can you describe the supply chain in-sourcing that impacted working capital, and what is the EBITDA trajectory for H2? A: CEO Peter Karlstromer explained that the company is in-sourcing logistics and distribution to gain control, improve cost efficiency, and leverage automation and AI opportunities. The working capital hit is temporary and will normalize in H2. CFO Soeren Jelert outlined a gradual EBITDA improvement, with Q3 showing improvement and Q4 showing significant gains, supported by tariff refunds of DKK100-150 million.
Q: What performance has been seen in Q3 so far, and how is bundling from competitors affecting the enterprise business? A: CEO Peter Karlstromer noted that Q3 data is limited, but distribution conversations around new products are positive. The Evolve3 85 and 75 continue to show strong sell-in and sell-out growth. In gaming, headset and keyboard momentum is expected to continue. On bundling, it is a long-standing phenomenon in enterprise, particularly with Fortune 500 companies, but the company's channel-led approach mitigates any headwinds.
Q: What caused the slowdown in the hearing business, and how motivated is the company to invest in the new launch given the ownership change? A: CEO Peter Karlstromer attributed the slowdown to difficult comparisons, anticipation of the new Sensia launch, and headwinds from a large US retailer expanding its supplier base. The company remains fully committed to investing in the Sensia launch, expecting a bounce-back in Q3 and a healthy Q4. There are no contractual restrictions on investment levels beyond running the business normally.
Q: Why did pressure from the US retailer increase from Q1 to Q2, and what is the price uplift for Evolve3 in lower categories? A: CEO Peter Karlstromer explained that the year-over-year headwind is primarily due to the VIVIA launch and large orders a year ago, compounded by the retailer adding more suppliers. The relationship remains good. On pricing, the Evolve3 portfolio is expected to have a positive ASP effect across all segments, with a refreshed portfolio making it easier to compete and price effectively.
Q: Will enterprise return to growth in Q3 or is it more of a Q4 event? A: CEO Peter Karlstromer confirmed that the base assumption is for some level of growth in enterprise already in Q3, with further improvement expected in Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
