THG (LON:THG) Releases Quarterly Earnings Results

THG (LON:THG) issued its quarterly earnings data on Thursday. The company reported GBX (0.04) earnings per share for the quarter, Digital Look Earnings reports. THG had a negative return on equity of 35.25% and a negative net margin of 8.04%.

Here are the key takeaways from THG’s conference call:

• THG reported a strong FY25 with adjusted EBITDA of GBP 76.6 million, meaningful deleveraging, debt facilities extended to end‑2029 and over GBP 330 million of cash and available facilities providing material financial flexibility.
• The group has VAT claims totalling around GBP 78 million, expects a resolution later this year, and says the outcome combined with free cash flow could broadly halve net debt by year‑end.
• THG Beauty delivered record brand and exclusive product launches, gained share in core markets (notably LOOKFANTASTIC U.K.), and expanded new channels including becoming the largest UK beauty retailer on TikTok Shop, supporting differentiation and growth.
• Myprotein and THG Nutrition showed H2 momentum (nearly 10% H2 growth), strong licensing/offline expansion and rising brand awareness—including a fast‑growing activewear category—but profitability remains exposed to record‑high whey/commodity prices that could cause near‑term margin volatility.
• Outlook for 2026 targets mid‑single‑digit group revenue growth, year‑on‑year gross margin improvement and meaningful EBITDA progression driven by sales, margin mix and OpEx/AI savings, with expected free cash flow of GBP 25–50 million.

THG Trading Down 0.4%

LON:THG opened at GBX 33.20 on Friday. THG has a 52 week low of GBX 22.90 and a 52 week high of GBX 52.55. The company has a debt-to-equity ratio of 141.80, a quick ratio of 0.89 and a current ratio of 1.03. The firm’s fifty day moving average is GBX 35.18 and its 200-day moving average is GBX 39.81. The firm has a market cap of £517.17 million, a P/E ratio of -3.32, a P/E/G ratio of -0.08 and a beta of 2.60.

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. reiterated a “neutral” rating on shares of THG in a research report on Monday, January 19th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of GBX 55.

Insiders Place Their Bets

In other news, insider Matthew Moulding bought 24,395,170 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The shares were acquired at an average price of GBX 35 per share, for a total transaction of £8,538,309.50. 22.90% of the stock is owned by corporate insiders.

Trending Headlines about THG

Here are the key news stories impacting THG this week:

• Positive Sentiment: Shares jumped after THG said results beat forecasts and that strong trading has continued into the new year, a direct driver of the intraday rally. THG shares jump 8% after results beat forecasts and strong trading continues into new year
• Positive Sentiment: Management reported a record second half and said the business has returned to growth, leading the company to strengthen FY26 guidance — a forward-looking catalyst for investors. Record second half sees THG return to growth and strengthen FY26 guidance
• Positive Sentiment: THG reported improved H2 performance and has moved back into profit on that basis, which supports the positive market reaction. THG back in the black following improved H2 performance
• Positive Sentiment: THG highlighted growth in its sports nutrition division — calling it the “world’s largest online sports nutrition brand” — supporting revenues approaching £2bn and strengthening investor sentiment around core brands. THG celebrates “world’s largest online sports nutrition brand” as FY results near £2bn revenue
• Positive Sentiment: THG reduced pre-tax losses in the first year after separating from Ingenuity, indicating cost and portfolio improvements that investors view favorably. THG reduces pre-tax losses in first year after separation from Ingenuity
• Neutral Sentiment: Full Q4 2025 earnings call transcript and management commentary are available for investors to review tone and details behind guidance. THG Plc (THGHY) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Quarterly reported EPS remained negative (GBX -0.04) and slides from the investor presentation are published for further detail. View Slide Deck
• Negative Sentiment: Despite disposals reducing debt, analysts and the company flag that cash generation remains a weakness — ongoing cash strain could limit flexibility and is a risk to the recovery story. THG disposals cut debt but cash remains a struggle

About THG

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age.

We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel.

THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities.

THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.