FY26 Year in Review

“What we offer our Angels goes beyond a subscription or loyalty program. It's something harder to replicate and worth protecting: a direct relationship with those who make a very important product in their lives - wine.

Independent Winemakers - talented, passionate, and free to focus entirely on their craft - funded by a community of customers who care about provenance, quality and authenticity. That model has always been Naked's edge. In FY26, we recommitted to it and the results followed.” Read more in our CEO’s review.

Overview

Full year highlights: 

  1. Adjusted EBITDAeilac1 of £7.6m, slightly ahead of guidance*, and up 35% on prior year in constant currency (+13% vs. FY25: £6.7m); tracking well towards the Medium-Term target of £9m to £14m
  2. Gross Profit Margin %3 increased to 19.9% (FY25: 18.4%) including the impact of price increases, improvements to first-order acquisition economics, fulfilment costs, and inventory provision changes
  3. Net cash excluding lease liabilities2 of £33.4m up £3.3m on prior year (FY25: £30.1m), reflecting £9m of cash generation4 less the total £6m share buyback actioned in the year5
  4. Positive free cash flow (FCF6) of £10.6m versus £18.5m prior year, primarily driven by inventory reduction at an expected lower rate than prior year as inventory levels normalise in the UK and Australia
  5. Continued progress in reducing excess inventory; total inventory (incl. staged payments to winemakers) down £10.4m at £97.2m (of which £3.9m is FX and non-cash), the lowest level in 5 years (FY25: £107.6m)
  6. Revenue of £199.1m, -20% year-on-year (-18% at constant currency), with all markets performing to management expectations
  7. Statutory loss before tax of £6.3m (FY25: loss of £4.9m), reflecting £6.0m of adjusted items in the year (FY25: £1.3m), including restructuring costs (£3.5m), impairment of non-current assets (£1.8m) and write-off of software costs (£0.7m)
  8. Return On Equity and Cash7 of 12% versus 9% prior year driven by higher adj EBITDAeilac1 and the impact of the share buyback programme reducing the denominator

* adj. EBITDAeilac guidance for FY26 was £5.5m to £7.5m

  1. Adjusted EBITDA excluding inventory liquidation and associated costs: EBITDA excluding inventory liquidation and associated costs and adjusted items
  2. Net cash excluding lease liabilities: The amount of cash we are holding less borrowings at financial year end, excluding lease liabilities
  3. Gross Profit Margin %: Gross profit as a % of revenue
  4. Net cash excluding lease liabilities of £33.4m at year end was achieved after returning £6m to shareholders; on an underlying basis (excluding share buybacks), we generated £9m of cash in the year
  5. £5m executed as at 30 March 2026, with £1m actioned and completed on 12 June 2026
  6. FCF = Free Cash Flow: Operating cash flow excluding tax paid, less capital expenditure
  7. ROEC = Return On Equity and Cash: EBITDA excluding inventory liquidation and associated costs, and adjusted items, as a percentage of equity and debt including cash and cash equivalents. We have included cash in the denominator because we have committed to distributing as much cash as possible in the coming years. Doing so will be reflected in this metric.

Read more on Naked Wines

Hear more from our team here

See our Digital Content