Germany's HelloFresh Q3 revenue falls as lower marketing spend cuts new customer intake

Overview

• Germany meal kit provider's Q3 revenue fell 11.3% yr/yr in constant currency due to lower marketing spend

• Q3 adjusted EBITDA rose 26.3% yr/yr, reflecting higher AOV and lower marketing expenses

• Company reported improved free cash flow and operational execution in Q3

Outlook

• HelloFresh expects 2026 revenue to decline 9%-11% in constant currency

• Company forecasts 2026 AEBITDA between €350 mln and €370 mln in constant currency

• HelloFresh aims to maintain double-digit margin for Meal Kits and return RTE to AEBITDA profitability in 2026

Result Drivers

• LOWER MARKETING SPEND - Co said reduced marketing expenses led to fewer new customers and lower order volumes, impacting revenue

• HIGHER AVERAGE ORDER VALUE - Co said AOV rose 7.5% yr/yr in constant currency, driven by selective price increases, more add-ons, and a higher share of premium recipes

• OPERATIONAL INEFFICIENCIES - Co said temporary inefficiencies in procurement, cooking and fulfillment linked to rapid menu expansion and RTE ramp-up outside the US negatively impacted results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy."

• Wall Street's median 12-month price target for Hellofresh SE is €3.50, about 17% above its November 4 closing price of €2.99

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)