Q2 review: Shift to profitability amid revenue decline

The underlying operational metrics highlight a more robust business model emerging from these strategic changes. The group’s contribution margin improved to 37.6%, up 2.9pp, while operating EBITDA margin rose 6.5pp to 7.8%. These improvements stemmed from tighter cost control, reduced marketing intensity, and efficiency gains across the supply chain. G&A expenses fell by 18.9%, equivalent to € 3.5m in savings. Net income approached breakeven at a € 0.6m loss, reflecting the operational leverage achieved. Importantly, customer engagement remained strong despite lower acquisition spend, with average order frequency up 5.4% and average order value rising 5.8%.

Regional performance illustrates the benefits of disciplined cost management. The US, Marley Spoon’s largest market, reported revenues of € 34.2m, down 24.6% yoy, but delivered significant margin expansion with contribution margin at 42.4% (+5.5pp yoy) and operating EBITDA margin at 18.1%. Australia posted revenues of € 24.1m, down 17.8% yoy, yet achieved record profitability with an operating EBITDA margin of 15.5%, helped by higher order values and a broader product mix. Europe, though smallest in scale with revenues of € 5.8m, turned profitable with an operating EBITDA margin of 5.1%, reflecting efficiency gains under the single-brand strategy.

Cash flow remains a constraint, with operating cash burn of € 2.6m, albeit an improvement of € 2.4m yoy. The quarter closed with a cash balance of € 5.2m, underscoring the need for continued capital discipline as the company balances growth ambitions with financial sustainability. With over € 75m of financial debt and close to € 12m in annual interest obligations, management needs to reach a sustainable long-term agreement with its lenders.

BUY with an unchanged € 1.00 PT based on DCF.