Largo: Sales up 13.5% in third quarter, gross margin down in first half
Largo, a specialist in smartphone and laptop refurbishment, published on October 15, 2026 its first-half accounts and third-quarter sales. The two periods show different profiles. In the first half, revenue remained stable at 14.5 M€, but the gross margin rate fell from 21.1% to 17.0%. EBITDA held steady at -1.5 M€ thanks to lower operating expenses. In the third quarter, sales grew 13.5% to 10.6 M€, driven by the Operators and Large Accounts channels, which now represent 85% of activity over nine months. On this basis, the group set a 2026 revenue target of over 35 M€.
First half: stable sales, gross margin brought to 17.0%
In the first half of 2026, Largo achieved revenue of 14.527 M€, compared to 14.459 M€ a year earlier. The group notes that this level was reached despite a marked contraction in volumes in the second quarter, which it attributes to a slowdown in consumption linked in particular to geopolitical uncertainties.
Gross margin stood at 2.458 M€, or 17.0% of revenue, compared to 3.040 M€ and 21.1% in the first half of 2025. This decline of 582 K€ is explained mainly, according to the company, by the voluntary reduction of 60% in activity on marketplaces. Operating margin, an indicator now highlighted by the group, fell from 3.0% to 2.1% of revenue.
Operating expenses fell by 146 K€, to 1.816 M€, as a result of the reorganization undertaken in the second half of 2025 (overheads and payroll). EBITDA thus remained stable at -1.505 M€, compared to -1.522 M€. Net income stood at -2.2 M€, compared to -1.8 M€, a gap that the company explains in particular by the absence in 2026 of the favorable effect of deferred taxes recorded a year earlier. Before tax, the result improved, rising from -2.4 M€ to -2.2 M€.
On the liquidity side, cash stood at 0.6 M€ on June 30, 2026, linked to a heavy concentration of purchases at the end of the semester. It was brought to 1.6 M€ on July 3, 2026 after the receipt of several significant invoices.
Third quarter advances 13.5%, driven by Operators
The third quarter marks a change in activity. Revenue reached 10.642 M€, compared to 9.377 M€ a year earlier, an increase of 13.5%. The company describes this level as a quarterly "record". Over the first nine months, growth was 5.6%, at 25.169 M€ compared to 23.837 M€.
The sales mix has shifted. The Operators channel represented 69% of revenue on September 30, 2026, compared to 63% a year earlier. The group explains this by growing demand for refurbished products. The share of Large Accounts rose from 12% to 16%, thanks to the development of relationships with existing customers and the arrival of new partners.
Conversely, the "Digital" channel fell from 25% to 15% of sales. This decline stems from the downturn in marketplaces, in line with the company's strategy, which favors the channels deemed most profitable and proprietary (largo.fr and the extranet). The same choice explains most of the decline in first-half gross margin: the commercial reorientation appears both in the decline in the gross margin rate in the first half and in the growth of B2B channels in the third quarter.
An annual target of over 35 M€, representing at least 7.5% growth
For the full year 2026, Largo anticipates revenue of over 35 M€, representing growth of at least 7.5% compared to the 32.4 M€ achieved in 2025. The sole consensus analyst expected 37 M€ for the current fiscal year.
On profitability, management indicates it anticipates a "significant improvement" in its indicators in the second half of 2026, without quantifying it. It relies on the combination of activity recovery and a leaner cost structure, from which the group believes it should "fully benefit from the leverage effect". For 2027, Largo intends to continue its commercial momentum, notably driven by the growth of its partner customers, while optimizing its cost structure and industrial organization.
With 25.2 M€ in cumulative revenue at the end of September, up 5.6%, the group now targets a 2026 fiscal year beyond 35 M€.
