This article first appeared on GuruFocus .
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Cash Generation:GBP10 million generated, with GBP2 million used for share buyback, resulting in a net increase of GBP8 million.
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Adjusted EBITDA:Increased by 112% to GBP3.6 billion.
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Loss Before Tax:Includes GBP2 million restructuring costs and GBP2.6 million inventory liquidation costs.
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Free Cash Flow:Positive, with inventory reductions contributing to cash generation.
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Gross Profit Margin:Increased, with improvements from inventory liquidation and cost savings.
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Acquisition Break Even:Improved to 44 months from 75 months.
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Member Retention Rate:Up 100 basis points from the end of last year.
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Customer Acquisition Cost (CAC):Decreased, contributing to improved metrics.
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Revenue Per Member:Slight decline due to geographic mix and industry hesitancy.
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Inventory Liquidation Target:GBP12 million to GBP17 million over the medium term.
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G&A Savings:GBP1.5 million delivered, resulting in GBP1.1 million reduction after inflation.
Release Date: December 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Naked Wines PLC ( NWINF ) reported strong cash generation, with GBP10 million generated and a GBP2 million share buyback completed in September.
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Adjusted EBITDA doubled, reflecting a strategic focus on higher quality, core profitable customers, reaching GBP3.6 billion.
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The company has made structural changes to enhance focus, speed, and accountability, resulting in improved acquisition and retention metrics.
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Gross profit margin increased significantly, driven by inventory liquidation and reductions in first order loss.
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Naked Wines PLC ( NWINF ) is leveraging its community of angels and winemakers to drive sustainable growth, with positive signals in retention rates and customer advocacy.
Negative Points
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Revenue decreased compared to the prior year due to a strategic shift towards focusing on core profitable customers, which was expected but still a decline.
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The company incurred GBP2 million in restructuring costs and GBP2.6 million in inventory liquidation costs, impacting financial results.
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Free cash flow was lower than the prior year due to inventory build-up in the UK and Australia.
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The company faced challenges with conversion rates on YouTube and other video platforms, leading to divestment from these channels.
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Revenue per member slightly decreased, attributed to geographic mix and industry hesitancy.
Q & A Highlights
Q: Should Naked Wines PLC be moving faster on share buybacks given the shares are trading below intrinsic value? A: Dominic Neary, CFO, explained that the company has a clear policy of ongoing distributions, distributing up to 50% of cash generation or adjusted EBITDA from the last 12 months, whichever is lower. They completed their first share buyback in September and plan to continue this policy. Excess cash will be used for one-off distributions as profitability increases, which is a matter of when, not if.
Q: What is the company's view on the revenue mix from core members versus new growth? A: Rodrigo Maza, CEO, stated that they expect stabilization in the next couple of years as the impact of the COVID cohorts flows through. The focus is on disciplined acquisition, prioritizing quality over quantity, and ensuring customers are genuinely interested in Naked Wines' value proposition. Retention and net promoter scores remain high priorities.
Q: Is Naked Wines considering opening pop-up stores for the peak season to sell Christmas gift boxes and high-margin wines? A: Rodrigo Maza mentioned that they are exploring partnerships to bring the Naked experience into the real world beyond their successful tasting tour. However, they are already close to selling out their Christmas gift boxes, with over 70,000 cases delivered, indicating strong sales performance.
Q: How is the company progressing with its strategic pillars, particularly cash and profitability? A: Dominic Neary highlighted continued strong cash generation, with GBP10 million generated and GBP2 million used for share buybacks. Adjusted EBITDA has doubled, reflecting a focus on higher quality, profitable customers. The company is on track with its medium-term target of up to GBP140 million EBITDA.
Q: What are the key drivers for acquisition and retention improvements? A: Rodrigo Maza emphasized leveraging their engaged community of angels and winemakers for sustainable growth. They are enhancing business-to-business sales and focusing on advocacy and word of mouth for acquisition. Retention is supported by improvements in catalog navigation, delivery options, and customer engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
