Continued strong growth and profitability
July - September 2025
• Net revenue increased by 17%, totalling SEK 427 (365) million.
• EBIT was SEK 7 (0) million, corresponding to an operating margin of 1.6% (-0.1%). Adjusted EBIT was SEK 11 (0) million and the adjusted operating margin was 2.7% (0.0%).
• Cash flow for the period was SEK -22 (-105) million and the cash position at the end of the period was SEK 159 (261) million.
• Earnings per share before and after dilution was SEK 0.03 (-0.03).
January - September 2025
• Net revenue increased by 15%, totalling SEK 1,352 (1,177) million.
• EBIT was SEK 18 (23) million, corresponding to an operating margin of 1.3% (2.0%). Adjusted EBIT totalled SEK 33 (24) million, and the adjusted operating margin was 2.4% (2.0%).
• Cash flow for the period was SEK -129 (35) million.
• Earnings per share before and after dilution was SEK -0.11 (0.46).
| Jul-Sep | Jan-Sep | Oct 2024- | Jan-Dec | |||
| SEKm (unless stated otherwise) | 2025 | 2024 | 2025 | 2024 | Sep 2025 | 2024 |
| Net revenue | 427 | 365 | 1,352 | 1,177 | 1,803 | 1,628 |
| Growth (%) | 17% | -1% | 15% | 2% | 16% | 6% |
| Growth in local currencies (%) | 20% | 1% | 17% | 2% | 18% | 6% |
| Gross profit | 171 | 166 | 571 | 530 | 765 | 724 |
| Profit after variable costs | 84 | 82 | 280 | 268 | 373 | 361 |
| Overhead costs | -61 | -65 | -207 | -194 | -283 | -270 |
| EBITDA | 19 | 17 | 59 | 74 | 69 | 84 |
| EBIT | 7 | 0 | 18 | 23 | 13 | 18 |
| Adjusted EBITDA | 24 | 17 | 73 | 74 | 90 | 91 |
| Adjusted EBIT | 11 | 0 | 33 | 24 | 34 | 25 |
| Items affecting comparability | -4 | 0 | -15 | 0 | -21 | -7 |
| Profit/loss for the period | 2 | -2 | -9 | 37 | -9 | 36 |
| Gross margin (%) | 40.1% | 45.5% | 42.2% | 45.0% | 42.5% | 44.5% |
| Profit after variable costs (%) | 19.7% | 22.5% | 20.7% | 22.8% | 20.7% | 22.2% |
| Adjusted EBITDA (%) | 5.5% | 4.6% | 5.4% | 6.3% | 5.0% | 5.6% |
| Adjusted EBIT (%) | 2.7% | -0.0% | 2.4% | 2.0% | 1.9% | 1.5% |
| Cash flow for the period | -22 | -105 | -129 | 35 | -97 | 68 |
| Net debt (+) / Net cash (-) | -159 | -261 | -159 | -261 | -159 | -297 |
| Earnings per share before dilution (SEK) | 0.03 | -0.03 | -0.11 | 0.46 | -0.12 | 0.45 |
| Earnings per share after dilution (SEK) | 0.03 | -0.03 | -0.11 | 0.46 | -0.12 | 0.45 |
Significant events during the reporting period
No significant events took place during the reporting period.
Significant events after the end of the reporting period
No significant events took place after the end of the reporting period.
CEO comments
We delivered another strong quarter of growth and profitability. Adjusted EBIT reached SEK 11 million, compared with SEK 0 million last year, supported by 17 percent year-over-year net revenue growth, or 20 percent in local currencies.
Our efforts to make marketing more efficient yielded clear results, improving variable costs by 2.7 percentage points as a share of sales.
Operational efficiency measures continued in Q3, including a reduction of about 10 white-collar FTEs. Since launching our Pierce 2.0 transformation in Q3 2023, we have reduced white-collar staff by over 35 percent - from 256 in Q2 2023 to 166 in Q3 2025. Sales per white-collar FTE have increased roughly 80 percent, driven by simplified processes, reduced bureaucracy, and greater team empowerment.
Overhead costs were SEK 5 million lower than last year, despite 20 percent revenue growth in local currencies. This is particularly positive given an 8 percent salary increase in Poland - representing over 40 percent of total salary costs - and SEK 6 million in non-recurring transformation expenses. These results clearly demonstrate the scalability of our business model: strong growth achieved while overheads decline.
Over the past year, we have executed a major transformation of our IT landscape, replacing nearly all core systems to eliminate legacy tech debt and strengthen scalability. In Q2, we launched our Customer Data Platform (CDP) and Product Information Management (PIM) system, and in Q3, our first site went live on the new e-commerce platform with encouraging results. Over the next two quarters, we will complete the rollout across all markets and implement our new Warehouse Management System (WMS), marking the final steps in modernizing our tech stack.
In line with accounting standards, all cloud-related system investments are expensed as incurred, totalling SEK 23 million year-to-date. With full system deployment expected by Q1 2026, transformation-related costs will taper off toward the end of 2025 and decline significantly from Q2 2026 as the tech stack becomes fully operational. At the same time, depreciation and amortization will decrease as major assets become fully depreciated by year-end 2025. Combined, these effects are expected to improve adjusted EBIT by SEK 30-40 million on an annualized basis.
The gross margin in the third quarter was 40.1 percent, 5.4 percentage points lower than last year, mainly due to obsolescence effects, which accounted for around 3 percentage points of the decline.
As the leading specialist in our industry, we made an investment in our stocked assortment at the end of last year and early this year to secure the widest and most attractive product offering on the market. The rapid inventory expansion to enhance the customer offering temporarily increased the risk of obsolescence. To address this, we made an extra SEK 13 million provision in Q3. Although the company applies an established obsolescence model, a review identified certain inventory items that required additional write-downs beyond the model's normal parameters.
At the end of the period, we maintained a solid cash position of SEK 161 million, with an inventory level of SEK 490 million. Cash flow was SEK -22 million for the quarter, despite positive EBITDA and a reduction in inventory levels. The strong sales growth in the preceding period drove both a substantial VAT payment made after the end of the quarter and a temporary exceeding of credit limits with some of our largest suppliers, which required us to make prepayments and resulted in negative cash flow. These factors had a temporary impact on cash flow, which is expected to normalize and more closely align with the company's underlying operating performance in the coming periods.
While comprehensive industry data is lacking, we are confident that we are gaining market share. Our strategic focus on commercial fundamentals - the broadest assortment, competitive pricing, and fast, reliable deliveries - continues to drive customer growth and retention.
The growth achieved through improved commercial fundamentals will naturally moderate as we begin to compare against stronger figures from last year. To offset this effect over time, we are focusing on expanding our reach across both markets and verticals. While this transition will take time, the investments we are making now - including the localization of 12 markets currently served by our pan-European (.eu) site - will provide a strong foundation for continued growth in the years ahead.
We also see encouraging momentum in our mountain-bike and scooter/moped categories, where we are making measured investments and leveraging our platform to drive cross-sales synergies. The growth effects from this expansion will materialize gradually over time, but we expect these categories to offer meaningful growth potential from 2026 onward, scaling efficiently through our existing infrastructure and marketing engine.
By the end of Q1 2026, when we have launched our last two systems, we will have completed the Pierce 2.0 transformation - improving customer experience, streamlining operations, and returning to growth and profitability. This achievement is the result of the dedication, talent, and resilience of our teams, whose hard work continues to drive our progress and success. We now stand on a strong, scalable platform ready for the next leap in our development, which brings me to the characteristics of the European market and the opportunities that lie ahead.
The European e-commerce market for motorcycle gear and equipment is ripe for consolidation, and the benefits of scale are clear. It's not a question of if, but when and by whom this consolidation will be driven. Pierce is uniquely positioned with a pan-European platform should such consolidation come into play.
For further information, please contact:
Göran Dahlin, CEO
Email: Goran.Dahlin@piercegroup.com
Tel: +46 727 303 111
About Pierce Group
Pierce is a leading e-commerce Company that sells motorcycle and snowmobile gear, parts and accessories to riders across Europe. The Company has a unique and wide range of products, which includes several own brands. Sales are conducted through customer focused and locally adapted websites to serve motocross and enduro riders, customers who ride on traffic-filled roads and snowmobile riders. Pierce is a European company with headquarters in Stockholm, a centralised warehouse in Szczecin, where it also has an office with IT, finance and marketing expert teams, and a customer care function in Barcelona.
This information is information that Pierce Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person[s] set out above, at 2025-11-12 08:00 CET.