LDLC Returns to Profit at €10.2M, but Warns About 2026/2027
On Thursday, LDLC Group reported a dramatic reversal in profitability with a net profit of €10.2M (compared to a loss of €10.9M a year earlier) and a gross margin established at 24.5%, above its normalized range. However, this improvement relies on strategic stock accumulation and the non-recurring effect of managing price increases.
For 2026/2027, the group anticipates a significant contraction in revenue, mainly due to the postponement of promising new product launches until the end of 2027, in a context also marked by the absence of new Nvidia graphics card launches and price tensions on certain components.
Record Gross Margin and EBITDA Increase of €22.7M
The consolidated revenue for 2025/2026 reached €554.1M, up 3.7% over twelve months. The gross margin rose to €135.6M, a 20.0% increase, while the gross margin rate jumped to 24.5%, significantly exceeding the group's normalized range of 21-22%.
EBITDA increased by €22.7M to €24.2M (compared to €1.5M in 2024/2025), and the EBITDA margin was established at 4.4%, an improvement of 4.1 percentage points. This recovery reflects the increase in gross margin and the impact of cost reduction measures implemented over the last two fiscal years. The group notably reduced personnel expenses by 8.2%, from 12.0% to 10.6% of revenues.
Operating profit (EBIT) amounted to €15.5M compared to an operating loss of €7.3M in 2024/2025, an improvement of €22.8M. This performance includes zero goodwill charges for the 2025/2026 fiscal year, compared to €36M in impairments the previous year.
Accumulated Stocks and Rising Net Debt
The group adopted a cautious policy of stockpiling in response to rising prices, largely explaining the accumulation of €48.6M in working capital requirements. This strategy generated a cash outflow from operations of €32.1M for the fiscal year.
Concurrently, net debt increased by €6.1M to €42.2M. The group repaid €12.2M in loans while contracting new loans for €4.0M. Despite this increase, the financial structure remains solid: equity was established at €100.3M (compared to €90.2M) and cash reserves at €7.1M. The group anticipates a gradual stabilization of stock levels during the fiscal year, favorable to cash generation.
2026/2027: Expected Revenue Decline and Margin Maintenance Under Reservation
For the 2026/2027 fiscal year, the group forecasts a significant contraction in revenue, mainly due to the postponement of launches of promising new products until the end of 2027 and persistent price tensions on certain components. However, this decline reflects only a temporary postponement of sales rather than a lasting erosion of demand, according to the group.
Olivier de la Clergerie, CEO, expresses confidence in the group's ability to maintain profitability in line with that of 2025/2026. This confidence is based on four levers: managerial discipline prioritizing margins over volumes, cautious stock management, the annualized impact of the 2025/2026 measures, and continuous cost optimization (including the discontinuation of LDLC School and VR Studio operations). The group has raised its normalized gross margin range from 21-22% to 22-23%, reflecting the expected improvement of the context for this fiscal year.
