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. Revenue of £199.1m, -20% year-on-year (-18% at constant currency) with all markets performing to management expectations
  2. Gross Profit Margin1 of 19.9% (FY25: 18.4%) including the impact of price increases, improvements to first-order acquisition economics, fulfilment costs, and inventory provision changes
  3. Adjusted EBITDA excluding inventory liquidation and associated costs2 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
  4. Statutory loss before tax of £6.3m (FY25: loss of £4.9m), reflecting the £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)
  5. Continued progress in reducing excess inventory; total inventory (including 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 (FY24: £107.6m)
  6. Net cash excluding lease liabilities of £33.4m up £3.3m on prior year (FY25: £30.1m), reflecting £9m of cash generation3 less the total £6m share buyback actioned in the year4
  7. Positive free cash flow (FCF5) of £10.6m versus £18.5m for prior year, primarily driven by inventory reduction at an expected lower rate than prior year as inventory levels normalise in the UK and Australia
  8. Return On Equity and Cash6 of 12% versus 9% prior year driven by higher adj EBITDAeilac2 and the impact of the share buyback programme reducing the denominator

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

  1. Gross Profit Margin %: Gross profit as a % of revenue
  2. Adjusted EBITDA excluding inventory liquidation and associated costs: EBITDA excluding inventory liquidation and associated costs and adjusted items
  3. 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
  4. £5m executed as at 30 March 2026, with £1m actioned and completed on 12 June 2026
  5. FCF = Free Cash Flow: Operating cash flow less capital expenditure
  6. ROEC = Return On Equity and Cash: EBITDA excluding inventory liquidation and associated costs, and adjusted items, as a percentage of equity plus 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.

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