Shelly Group (SLYG) Q2 2026 earnings summary

Executive summary

• Achieved strong H1 2026 results, with revenue and EBIT meeting targets, gross profit exceeding expectations, and profitability and cash generation improving year-over-year, driven by supply chain optimization, expanding installer network, and product innovation including AI integration.

• Strategic shift from smart home to broader building and energy management solutions, opening larger markets and supporting ecosystem growth.

• Signed major distribution contracts, expanded presence in DACH and rest of Europe, made significant progress in the U.S. market, and onboarded new distributors and installers.

• Premium service user base and monetization continued to rise, with new product launches and AI-driven efficiency set to drive H2 acceleration.

• Interim consolidated financial statements prepared as of June 30, 2026, with all figures in thousands of euros following Bulgaria's adoption of the euro as official currency from January 1, 2026.

Financial highlights

• H1 2026 revenue reached €68.3M, up 26.5% year-over-year; EBIT was €17.7M, up 46% year-over-year, with a 26% EBIT margin; two-year CAGR of ~28%.

• Net income rose 51% year-over-year to €15.4M; EPS increased to €0.85 from €0.56; net income margin at 22.6%.

• Gross profit grew 39% year-over-year to €41.8M, with gross margin expanded to 61.2%.

• Cash position nearly €32M at Q2 end, up 72% year-over-year and 61.1% since March 2026, with €18M net cash inflow since year start.

• Operating cash flow tripled year-over-year to €22.3M; equity ratio exceeded 80%.

Outlook and guidance

• FY26 guidance confirmed: €195-205M revenue, €47-52M EBIT; cash position expected to reach €35M–€45M by year-end.

• H2 expected to be strong, with key contributions from new product launches, geographic expansion, and seasonal factors.

• U.S. market ramp-up anticipated in 2027; further international expansion under consideration.

• Management expects continued growth in sales and inventory levels, driven by expanding product assortment and market reach.

• No direct impact anticipated from ongoing geopolitical conflicts; supply chains remain stable.