Half Year 2026 Mister Spex SE Earnings Call

August 13, 2026

Speaker #1: Hello everyone. Thank you for joining us, and welcome to the Mister Spex Q2 results call. After today's prepared remarks, we will hold a question-and-answer session.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Mister Spex Q2 results call. After today's prepared remarks, we will hold a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Anke in Investor Relations. Anke, please go ahead.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Mister Spex Q2 Results Call. After today's prepared remarks, we will hold a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Anke in Investor Relations. Anke, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Anka in Investor Relations.

Speaker #1: Anka, please go ahead.

[Company Representative] (Mister Spex): Yes. Good morning, everybody, and a warm welcome also from our side to our Q2 H1 2026 results call. Joining me are Tobias Krauss, CEO of Mister Spex, and Benjamin Schenck, our CFO. Tobias will begin with a strategic update, followed by Benjamin, who will take us through the Q2 2026 financial results and our full year guidance. We will then open the floor for questions. Tobias, over to you.

Anke Bernesowski: Yes. Good morning, everybody, and a warm welcome also from our side to our Q2 H1 2026 Results Call. Joining me are Tobias Krauss, CEO of Mister Spex, and Benjamin Schenck, our CFO. Tobias will begin with a strategic update, followed by Benjamin, who will take us through the Q2 2026 financial results and our full year guidance. We will then open the floor for questions. Tobias, over to you.

Speaker #2: Yes, good morning everybody. A warm welcome also from our side to our Q2 / H1 2026 results call. Joining me are Tobias Kraus, CEO of Mister Spex, and Benjamin van Schenk, our CFO.

Speaker #2: Tobias will begin with a strategic update, followed by Benjamin, who will take us through the Q2 2026 financial results and our full-year guidance. We will then open the floor for questions.

Speaker #2: Tobias. Over to you.

Speaker #3: Thank you, Anka. Good morning, everyone, and thank you for joining us today for the Mister Spex H1 2026 results. Today's presentation looks at the business from two perspectives.

Tobias Krauss: Thank you, Anke. Good morning, everyone, and thank you for joining us today. Present Mister Spex H1 2026 results. Today's presentation looks at the business from two perspectives. I will begin with the strategic progress we made during the first half of the year, particularly on the initiative supporting a more scalable and flexible operating model. Benjamin will then focus on our financial performance in the second quarter, put the results into the context of the first half, and provide an update on our full year guidance. We will then open the floor for questions. Let us get started. From a financial perspective, we continue to improve profitability. Adjusted EBITDA increased by 65% year on year to EUR 3.8 million, while gross margin expanded by 197 basis points to 56.9%. Our offline segment maintained its positive momentum. Reported revenue increased by 10% year on year, while like-for-like revenue grew by 3%.

Speaker #3: I will begin with the strategic progress we made during the first half of the year, particularly on the initiatives supporting a more scalable and flexible operating model.

Speaker #3: Benjamin will then focus on our financial performance in the second quarter, put the results into the context of the first half, and provide an update on our full-year guidance.

Speaker #3: We will then open the floor for questions. So, let's get started. From a financial perspective, we continue to improve profitability. Adjusted EBITDA increased by 65% year-on-year to €3.8 million, while gross margin expanded by 197 basis points to 56.9%.

Tobias Krauss: From a financial perspective, we continue to improve profitability. Adjusted EBITDA increased by 65% year-on-year to EUR 3.8 million, while gross margin expanded by 197 basis points to 56.9%. Our offline segment maintained its positive momentum. Reported revenue increased by 10% year-on-year, while like-for-like revenue grew by 3%.

Speaker #3: Our offline segment maintained its positive momentum. Reported revenue increased by 10% year-on-year, while like-for-like revenue grew by 3%. This performance is particularly notable given the continued weakness of the German optics market.

Tobias Krauss: This performance is particularly notable given the continuous weakness of the German optic market. According to the latest ERFA-light analysis by the German Association of Opticians and Optometrists, revenue among participating businesses declined by 7.4% year on year between January and May, while unit volumes fell by 11.3%. Against this backdrop, our like-for-like growth of 3% offline represents a clear outperformance of the market. Total net revenue was EUR 87.9 million, down 10% year on year, and in full line with our full year guidance. Benjamin will provide a detailed review of Q2 later in the presentation. We also made progress on four strategic initiatives during the first half. The most significant strategic decision was to outsource our logistics and production operations.

Tobias Krauss: This performance is particularly notable given the continuous weakness of the German optic market. According to the latest ERFA-light analysis by the German Association of Opticians and Optometrists, revenue among participating businesses declined by 7.4% year-on-year between January and May, while unit volumes fell by 11.3%. Against this backdrop, our like-for-like growth of 3% offline represents a clear outperformance of the market. Total net revenue was EUR 87.9 million, down 10% year-on-year, and in full line with our full year guidance. Benjamin will provide a detailed review of Q2 later in the presentation. We also made progress on four strategic initiatives during the first half. The most significant strategic decision was to outsource our logistics and production operations.

Speaker #3: According to the latest ERFA light analysis by the German Association of Physicians and Optometrists, revenue among participating businesses declined by 7.4% year-on-year between January and May.

Speaker #3: While unit volumes fell by 11.3%. Against this backdrop, our like-for-like growth of 3% offline represents a clear outperformance of the market. Total net revenue was €87.9 million, down 10% year-on-year and in full line with our full-year guidance.

Speaker #3: Benjamin will provide a detailed review of Q2 later in the presentation. We also made progress on four strategic initiatives during the first half. The most significant strategic decision was to outsource our logistics and production operations.

Speaker #3: This is one of the most substantial structural changes Mister Spex has undertaken in recent years, and it marks a fundamental shift toward a more asset-light and flexible operating model.

Tobias Krauss: This is one of the most substantial structural changes Mister Spex has undertaken in recent years and marks a fundamental shift towards a more asset-light and flexible operating model. We established new B2B2C partnerships that give us access to additional customer groups and create new opportunities to generate qualified demand for our products and services. Mister Spex Kids, our new eyewear offering, specifically designed for school-aged children, will launch, expanding our product portfolio and addressing the growing demand for stylish, child-friendly. We also selected Adyen as our payment provider. This will allow us to introduce one unified payment platform across our online and store channels. Let me now take you through these strategic developments in more detail. The outsourcing of logistics and production is the most fundamental of the four initiatives.

Speaker #3: We established new B2B2C partnerships that give us access to additional customer groups and create new opportunities to generate qualified demand for our products and services.

Speaker #3: Mister Spex Kits, our new eyewear offering specifically designed for school-aged children, will launch. This expands our product portfolio and addresses the growing demand for stylish, child-friendly options.

Speaker #3: We also selected Adyen as our payment provider. This will allow us to introduce one unified payment platform across our online and store channels. Let me now take you through these strategic developments in more detail.

Speaker #3: The outsourcing of logistics and production is the most fundamental of the four initiatives. It is embedded in our continuous improvement flywheel, which we introduced in Q1 2026 as four structural enablers that reinforce each other and drive us toward a scalable and resilient operating model.

Tobias Krauss: It is embedded in our continuous improvement flywheel, which we introduced in Q1 2026 as four structural enablers that reinforce each other and drive us towards a scalable and resilient operating model. This initiative directly advances operating leverage, our efficiency engine within the flywheel. Let me now illustrate what this means in practice. This decision fundamentally changes how we manage the two core operational functions. Under the current setup, logistics and productions are both managed in-house. This results in high fixed costs, ties up capital and infrastructure, and limits our ability to scale efficiently. Under the new partner model, Arvato will take over logistics, while Rodenstock will assume responsibility for production. This will allow us to adjust logistics capacity without expanding our fixed cost base. Consolidating production with an external partner will reduce both costs and operational risk.

Speaker #3: This initiative directly advances operating leverage, our efficiency engine within the flywheel. Let me now illustrate what this means in practice. This decision fundamentally changes how we manage the two core operational functions.

Speaker #3: Under the current setup, logistics and production are both managed in-house. This results in high fixed costs, ties up capital and infrastructure, and limits our ability to scale efficiently.

Speaker #3: Under the new partner model, Avato will take over logistics, while Rothenstock will assume responsibility for production. This will allow us to adjust logistics capacity without expanding our fixed cost base.

Speaker #3: Consolidating production with an external partner will reduce both costs and operational risk. At the same time, fixed personnel costs will be converted into variable partner fees.

Tobias Krauss: At the same time, fixed personal costs will be converted into variable partner fees. The transition began at the start of H2 2026. Our Berlin Spandau site is scheduled to close down at the end of the year, with a full handover to Arvato and Rodenstock planned for early 2027. Once implemented, the new model will provide us with a more flexible cost base and a greater operating leverage as the business scales. Let me now turn to how we are broadening customer acquisition through B2B2C partnerships. The underlying logic is straightforward. We work with trusted partners and brands that already have established customer relations and connect relevant customer groups directly with Mister Spex.

Speaker #3: The transition began at the start of the second half of 2026. Our Berlin Spandau site is scheduled to close down at the end of the year, with a full handover to Avato and Rothenstock planned for early 2027.

Speaker #3: Once implemented, the new model will provide us with a more flexible cost base and greater operating leverage at the business scale. Let me now turn to how we are broadening customer acquisition through B2B2C partnerships.

Speaker #3: The underlying logic is straightforward: we work with trusted partners and brands that already have established customer relations, and connect relevant customer groups directly with Mister Spex.

Speaker #3: Our health insurance program is AXA, Germany's second-largest private health insurer, and MKK, a statutory health insurer, gives us access to more than 1 million potential customers.

Tobias Krauss: Our health insurance program with AXA, Germany's second largest private health insurer, and mkk, a stationary health insurer, gives us access to more than 1 million potential customers. We offer free eye health checks across 66 stores. We are required to refer customers to eye doctors at selected cities. Alongside this, our partnership with Thalia and Amplifon allows us to reach their broad and established customer bases. Thalia promotes eye test bookings and eyewear offers through bookmarks distributed to its customers. Amplifon reaches its customers directly through emails with eye test booking links. These partnerships generate qualified leads for eyewear purchases, position Mister Spex as the optical expert from the first customer contact, and drive additional footfall across our store network. Mister Spex Kids marks our entry into a new category and expands our core prescription eyewear business to families with school-aged children between 6 and 12.

Speaker #3: We offer free eye health checks across 66 stores, and, where required, refer customers to eye doctors in selected cities. Alongside this, our partnership with Thalia and Amplifon allows us to reach their broad and established customer bases.

Speaker #3: Thalia promotes eye test bookings and eyewear offers through bookmarks distributed to its customers. Amplifone reaches its customers directly through emails with eye test booking links.

Speaker #3: These partnerships generate qualified leads for eyewear purchases, position Mister Spex as the optical expert from the first customer contact, and drive additional footfall across our store network.

Speaker #3: Mister Spex kits marks our entry into a new category and expands our core prescription eyewear business to families with school-aged children between 6 and 12.

Speaker #3: This gives us access to additional customer groups and allows us to establish relationships with both children and their parents at an early stage.

Tobias Krauss: This gives us access to additional customer groups and allows us to establish relationships with both children and their parents at an early stage. The category offers attractive structural growth. The kids eyewear market is expected to grow at an annual rate of 7.4%, and around 36% of children and teenagers are affected by myopia. There is also a strong retention component to it. As children grow, changes in their prescription and the fit of their frames can create a recurring need for adjustments or replacement glasses. With a typical prescription cycle of 1 to 2 years, this creates potential for repeat purchases and long-term customer relationships. Our offering combines specialist advice and ongoing service with a deliberate, focused selection of brands. The assortment has been carefully curated to cover the key needs of children and parents across quality, functionality, and price.

Speaker #3: The category offers attractive structural growth. The kids' eyewear market is expected to grow at an annual rate of 7.4%, and around 36% of children and teenagers are affected by myopia.

Speaker #3: There's also a strong retention component to it. As children grow, changes in their prescription and the fit of their frames can create a recurring need for adjustments or replacement glasses.

Speaker #3: With a typical prescription cycle of one to two years, this creates potential for repeat purchases and long-term customer relationships. Our offering combines specialist advice and ongoing service with a deliberate, focused selection of brands.

Speaker #3: The assortment has been carefully curated to cover the key needs of children and parents across quality, functionality, and price. It includes Ray-Ban Junior, Oakley Youth, Nanovista, and Titanflex kits, with frames suited to school, sports, and everyday life.

Tobias Krauss: It includes Ray-Ban Junior, Oakley Youth, Nano Vista, and TITANFLEX Kids, with frames suited to school, sports, and everyday life. Complete glasses with single vision lenses and basic hard coating will be available from around EUR 76. Thinner lenses and additional coatings can be added at an extra charge. Our key advantage is the combination of our online reach with the expertise of our store teams. Employees are being specifically trained to advise parents and children, ensure the correct fit, and provide further adjustments and services after the purchase. Mister Spex Kids will launch online on 17 August, followed by the launch in our stores on 31 August. This creates an additional opportunity for long-term customer retention and profitable growth in our German core market.

Speaker #3: Complete glasses with single vision lenses and basic hard coating will be available from around €76. Thinner lenses and additional coatings can be added at an extra charge.

Speaker #3: Our key advantage is the combination of our online reach with the expertise of our store teams. Employees are being specifically trained to advise parents and children, ensure the correct fit, and provide further adjustments and services after the purchase.

Speaker #3: Mister Spex kits will launch online on 17 August, followed by the launch in our stores on 31 August. This creates an additional opportunity for long-term customer retention and profitable growth in our German core market.

Speaker #3: Last but not least, our move to a unified payment platform with Adyen advances another core element of our continuous improvement flywheel: the unified stack—our scale engine.

Tobias Krauss: Last but not least, our move to a unified payment platform with Adyen advances another core element of our continuous improvement flywheel, the unified stack, our scale engine. This marks an important step towards a scalable operating model. Let me now explain what this means in practice. Today, our payment setup relies on five different providers across our online and store channels. Moving to Adyen will consolidate these providers into one platform and create benefits in three areas. Operationally, automated matching of payment and transactions will reduce manual processes across payment systems. Consolidating our payment volumes should also improve commercial terms and lower the administrative workload. From a revenue perspective, the platform will allow us to add relevant local payment methods through a single integration. It will also create a more consistent checkout experience across our online and store channels, supporting higher conversion.

Speaker #3: This marks an important step towards a scalable operating model. Let me now explain what this means in practice. Today, our payment setup relies on five different providers across our online and in-store channels.

Speaker #3: Moving to Adyen will consolidate these providers into one platform and create benefits in three areas. Operationally, automated matching of payments and transactions will reduce manual processes across payment systems.

Speaker #3: Consolidating our payment volumes should also improve commercial terms and lower the administrative workload. From a revenue perspective, the platform will allow us to add relevant local payment methods through a single integration.

Speaker #3: It will also create a more consistent checkout experience across our online and store channels, supporting higher conversion. The unified platform will also give us greater flexibility to introduce new commercial capabilities.

Tobias Krauss: The unified platform will also give us greater flexibility to introduce new commercial capabilities, including gift cards and loyalty programs. New payment features can then be rolled out more quickly without requiring separate integrations for each provider. We decided to move forward with Adyen in H1 2026. Implementation will begin in H2, with the platform planned to go live across all channels during 2026 and 2027. To wrap it up, together, the initiatives represent today mark important progress in reshaping Mister Spex for the future. They broaden our customer reach, strengthen our operating model, and create the foundation for more scalable and profitable growth. We have made the key strategic decisions. Our focus now is on disciplined execution and translating these initiatives into measurable financial results. With that, I will hand over to Benjamin for a closer look at our Q2 financial performance.

Speaker #3: Including gift cards and loyalty programs, new payment features can then be rolled out more quickly without requiring separate integrations for each provider. We decided to move forward with Adyen in the first half of 2026.

Speaker #3: Implementation will begin in the second half, with the platform planned to go live across all channels during 2026 and 2027. To wrap it up, together, the initiatives we represent today mark important progress in reshaping Mister Spex for the future.

Speaker #3: They have broadened our customer reach, strengthened our operating model, and created the foundation for more scalable and profitable growth. We have made the key strategic decisions.

Speaker #3: Our focus now is on disciplined execution and translating these initiatives into measurable financial results. With that, I will hand over to Benjamin for a closer look at our Q2 financial performance.

Speaker #2: Thank you, Tobias, and a warm welcome from my side to everyone on the call. Let me walk you through the financial highlights of the second quarter, Q2 2026.

Benjamin Schenck: Thank you, Tobias, and a warm welcome from my side to everyone on the call. Let me walk you through the financial highlights of Q2 2026. Key takeaway from Q2 is the continued improvement in earnings despite persistent macroeconomic headwinds. Net revenue amounted to EUR 47.1 million. This development was consistent with the assumptions underlying our full-year guidance. At the same time, adjusted EBITDA increased to EUR 2.6 million. Gross margin improved overall by 162 basis points to 65.4%. These results demonstrate further progress in strengthening our profitability and the quality of our earnings, even in a challenging macro market environment. Cash and cash equivalents stood at a solid EUR 43.2 million at the end of the quarter, also in line with our full-year cash guidance. Let me now take a closer look at our operating performance at group level and across the online and offline segments.

Speaker #2: The key takeaway from Q2 is the continued improvement in earnings despite persistent macroeconomic headwinds. Net revenue amounted to €47.1 million. This development was consistent with the assumptions underlying our value guidance.

Speaker #2: At the same time, adjusted EBITDA increased by €2.6 million. Gross margin improved overall by 162 basis points to 55.4%. These results demonstrate further progress in strengthening our profitability and the quality of our earnings, even in a challenging macro market environment.

Speaker #2: Cash and cash equivalents stood at a solid €43.2 million at the end of the quarter, also in line with our full-year cash guidance.

Speaker #2: Let me now take a closer look at our operating performance at group level and across the online and offline segments. On a group level, revenue declined by 11% year over year to €47.1 million.

Benjamin Schenck: On a group level, revenue declined by 11% year over year to EUR 47.1 million. This mainly reflects the continued revenue deceleration in our online segment. Our revenue mix shifted towards prescription glasses, which increased from 38% to 42% of group revenues. The share of contact lenses declined from 36% to 34%, while sunglasses decreased from 24% to 22%, and other services remained rather stable. Gross profit correspondingly declined from EUR 28.4 million to EUR 26.1 million, while gross margin continued to increase from 53.7% to 65.4%. Adjusted EBITDA increased from EUR 1.6 million to EUR 2.6 million, despite low revenues corresponding to an adjusted EBITDA margin of 5.5% compared to 3% in the prior year. This demonstrates the increasing operating leverage of the business. Let's now look at the performance of the two segments in more detail, starting with online.

Speaker #2: This mainly reflects the continued revenue deceleration in our online segment. Our revenue mix shifted towards prescription glasses, which increased from 38% to 42% of group revenues.

Speaker #2: The share of contact lenses declined from 36% to 34%, while sunglasses decreased from 24% to 22%, and other services remained rather stable. Gross profit correspondingly declined from €28.4 million to €26.1 million, while gross margin continued to increase from 53.7%.

Speaker #3: 55.4%.

Speaker #2: Adjusted EBITDA increased from €1.6 million to €2.6 million, despite a lower EBITDA margin of 5.5% compared to 3% in the prior year. This demonstrates the increasing operating leverage of the business.

Speaker #2: Let's now look at the performance of the two segments in more detail, starting with Online. Online revenue declined by 21% year-on-year to €28.3 million, reflecting our continued focus on quality over volume.

Benjamin Schenck: Online revenue declined by 21% year on year to EUR 28.3 million, reflecting our continued focus on quality over volume, a loss of revenue from international online stores that were closed in the previous year, and a more targeted allocation of marketing spend. Revenue mix remained broadly stable. Gross profit decreased from EUR 16.6 million to EUR 13.4 million due to the lower revenue base. Adjusted EBITDA increased from EUR 0.3 million to EUR 2.8 million, despite a decline in gross profit. This corresponds to margin improvement and shows that the structural cost reductions and improvements in marketing efficiency are translating into stronger earnings. This demonstrates that our focus on improving the quality and profitability of the online business is delivering results. Let's now turn to the offline segment.

Speaker #2: The loss of revenue from international online stores that were closed in the previous year, and a more targeted allocation of marketing spend. Revenue mix remained broadly stable.

Speaker #2: Gross profit decreased from €16.6 million to €13.4 million due to the low revenue base. Adjusted EBITDA increased from €0.3 million to €2.8 million. Despite the decline in gross profit, this corresponds to a margin improvement and shows that the structural cost reductions and improvements in marketing efficiency are translating into stronger earnings.

Speaker #2: This demonstrates that our focus on improving the quality and profitability of the online business is delivering results. Let's now turn to the offline segment.

Speaker #2: In the offline segment, revenue increased by 9% year over year to €18.9 million, supported by the expansion of our store network and the acquisition of independent opticians.

Benjamin Schenck: In the offline segment, revenue increased by 9% year over year to EUR 18.9 million, supported by the expansion of our store network and the acquisition of independent opticians. Prescription glasses further increased their share of segment revenue from 60% to 63%, and sunglasses accounted for 35% compared to 37% in the previous year. Gross profit increased by 7%, from EUR 11.8 million to EUR 12.6 million. Adjusted EBITDA decreased from EUR 1.3 million to a -0.2 million euros. Let's take a closer look at the factors behind this development. To put the offline segment results into operational context, let's look at the profitability at our store network. In Q2, 45 of our 66 stores generated a positive store margin. This was a significant sequential improvement from 36 stores in Q1 and broadly stable compared to 46 last year.

Speaker #2: Prescription glasses further increased their share of segment revenue from 60 to 63 percentage points, and sunglasses accounted for 35% compared to 37% in the previous year.

Speaker #2: Gross profit increased by 7%, from €11.8 million to €12.6 million. Adjusted EBITDA decreased from €1.3 million to negative €0.2 million.

Speaker #2: Let's take a closer look at the factors behind this development. So, to put the offline segment results into operational context, let's look at the profitability of our store network.

Speaker #2: In Q2, 45 of our 66 stores generated a positive store margin. This was a significant sequential improvement from 36 stores in Q1 and broadly stable compared to 46.

Speaker #2: Last year, within this profitable core, 24 stores achieved margins above 10%, while a further 21 stores recorded margins between 0% and 10%. At the other end of the distribution, the number of stores with negative margins declined from 30 in Q1 to 21 in Q2.

Benjamin Schenck: Within this profitable core, 24 stores achieved margins above 10%, while a further 21 stores recorded margins between 0% and 10%. At the other end of the distribution, the number of stores with negative margins declined from 30 in Q1 to 21 in Q2. The most significant improvement came from stores with margins below -10%, where the number fell from 15 to six. This demonstrates the resilience of the profitable core of our store network. The remaining stores with negative margins also represent a clear opportunity for further margin improvement. Alongside the improving profitability of our store network, our subscription model, Mister Spex Switch, continues to strengthen the quality of our offline revenues. Switch accounted for 15% of offline segment revenues in Q2, up from 13% in Q1. We are therefore making good progress towards our target of up to 20% by Q4 2026.

Speaker #2: The most significant improvement came from stores with margins below negative 10%, where the number fell from 15 to 6. This demonstrates the resilience of the profitable core of our store network.

Speaker #2: The remaining stores with negative margins also represent a clear opportunity for further margin improvement. Alongside the improving profitability of our store network, our subscription model, Mister Spex Switch, continues to strengthen the quality of our offline revenues.

Speaker #2: Switch accounted for 15% of offline segment revenues in Q2, up from 13% in Q1. We're therefore making good progress towards our target of up to 20% by the fourth quarter of '26.

Speaker #2: The economics for Mister Spex are attractive. Switch customers generate an average order value that is 2.3 times higher than customers outside the subscription model. Total subscriptions reached 20,000 by the end of Q2, compared with 14,000 at the end of Q1.

Benjamin Schenck: The economics for Mister Spex are attractive. Switch customers generate an average order value 2.3 times higher than customers outside the subscription model. Total subscriptions reached 20K by the end of Q2, compared with 14K at the end of Q1. Customer receivables increased to EUR 7.1 million. These are financial lease assets under IFRS and will convert into cash over the next 24 months. Switch was launched in mid-2025 last year, and the continued increase in adoption demonstrates that the model is gaining traction. It supports higher value transactions, strengthens customer loyalty, and creates a growing base of recurring customers. Let me now turn to the outlook for the full year. We confirm our guidance for 2026. We continue to expect net revenue to develop within a range of -10% to 0% compared with the prior year.

Speaker #2: Customers were both increased to €7.1 million. These are financial lease assets under IFRS and will convert into cash over the next 24 months.

Speaker #2: Switch was launched in mid-2025 last year, and the continued increase in adoption demonstrates that the model is gaining traction. It supports higher-value transactions, strengthens customer loyalty, and creates a growing base over current customers.

Speaker #2: Let me now turn to the outlook for the full year. We confirm our guidance for 2026. We continue to expect net revenue to develop within a range of negative 10% to 0%, compared with the prior year.

Speaker #2: For the adjusted EBITDA margin, we expect to achieve between break-even and a mid-single-digit percentage level. This reflects the continued improvement in profitability demonstrated during the first half of the year.

Benjamin Schenck: For the adjusted EBITDA margin, we expect to achieve between breakeven and a mid-single-digit percentage level. This reflects the continued improvement of profitability demonstrated during the H1 of the year. We also continue to expect cash and cash equivalents of approximately EUR 25 to 30 million at year-end. Current trading in Q3 remains in line with our guidance. During the quarter, we expect higher working capital requirements as well as non-recurring cash effects in the single-digit million euro range. These expected cash outflows are reflected in our year-end cash guidance. Before we move to questions, let me briefly highlight our upcoming reporting dates and investor events. As recently announced, we have decided to move our stock exchange listing from the Prime Standard to the General Standard.

Speaker #2: We also continue to expect cash and cash equivalents of approximately €25 to €30 million at year-end. Current trading in the third quarter remains in line with the.

Speaker #2: Our guidance: During the quarter, we expect higher working capital requirements as well as non-recurring cash effects in a single-digit million-euro range. These expected cash outflows are reflected in our year-end cash guidance.

Speaker #2: Before we move to questions, let me briefly highlight our upcoming reporting dates and investor events. As recently announced, we have decided to move our stock exchange listing from the Prime Standard to the General Standard.

Speaker #2: Once this change becomes effective in October, we will no longer be required to publish financial reports for the first and third quarters. Nevertheless, we will provide an update on our business performance in November, as maintaining transparency and an open dialogue with the capital markets and investors remains important to us.

Benjamin Schenck: Once this change becomes effective in October, we will no longer be required to publish financial reports for Q1 and Q3. Nevertheless, we will provide an update on our business performance in November.

Tobias Krauss: As maintaining transparency and an open dialogue with the capital markets and investors remains important to us, we will also meet investors at the Baader Investment Conference in Munich on 21 September, and at the Berenberg and Goldman Sachs German Corporate Conference on 22 September. Having said that, thanks. Now let me hand back to the open floor for questions.

Speaker #2: We will also meet investors at the BADA Investment Conference in Munich on the 21st of September, and at the Berenberg and Goldman Sachs German Corporate Conference on the 22nd of September.

Speaker #2: Having said that, thank you, and now let me hand back to the open floor for questions.

Speaker #1: We will now begin the question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Cédric Rossi, Stifel. Your line is now open. Please go ahead.

Speaker #1: We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device.

Speaker #1: Please stand by while we compile the Q&A roster. Your first question is from the line of Cedric Rossi. Your line is now open. Please go ahead.

Speaker #3: Yes, good morning, everyone. I have three questions. The first one is regarding the integration of the independent opticians that you acquired earlier this year.

Cédric Rossi: Yes, good morning, everyone. I have three questions, please. The first one is regarding the integration of the independent opticians that you have acquired earlier this year. Could you provide us an update with how the integration is progressing, and also how it is progressing relative to your initial expectations? That is my first question. The second one is regarding the personnel expenses that have increased as a percentage of sales in Q2. Does this increase already include costs related to the closure of the Berlin production and logistics site, or can we also expect some incremental cost over the H2? More broadly, what kind of percentage of sales do you expect for the personnel cost item for the entire year? The third question is regarding the marketing initiatives. Very happy to see all the launches and initiatives that you are planning in the future.

Speaker #3: Could you provide us with an update on how the integration is progressing, and also how it is progressing relative to your initial expectations? So that's my first question.

Speaker #3: The second one is regarding the personal expenses that have increased as a percentage of sales in Q2. So, does this increase already include costs related to the closure of the Berlin production and logistics site, or can we also expect some incremental costs over the second half?

Speaker #3: And more broadly, what percentage of sales do you expect for the personnel cost item for the entire year? And the third question is regarding the marketing initiatives.

Speaker #3: So, very happy to see all the launches and initiatives that you are planning in the future. But specifically, for instance, for the back-to-school period, are you planning any specific marketing campaigns in order, maybe, to mitigate the gloomy consumer sentiment that is probably here to persist?

Cédric Rossi: Specifically, for instance, for the back-to-school period, are you planning any specific marketing campaigns in order to mitigate the gloomy consumer sentiment that is probably here to persist? Thank you.

Speaker #3: Thank you.

Tobias Krauss: Thank you, Cedric. Nice to speak to you again. I will take question one and question three. Speaking about OAS, first of all, our OAS portfolio showed us that there is a big difference between a traditional optician, let us say a single store operator, versus Mister Spex and the Mister Spex store portfolio. What we saw is that these stores have been affected more heavily by the decline of frequency within retail. This is exactly what we saw across the German market with a long tail of thousands of small opticians, and this is exactly what unfortunately happened to us. The loss in frequency translated to a loss in revenue. This resulted in a situation which was not living up to our expectations. Yes, we have been below our expectations in the OAS portfolio.

Speaker #2: So, thank you, Cedric. Nice to speak to you again. I will take question one and question three. So, speaking about OES—first of all, our OES portfolio showed us that there is a big difference between a traditional optician, let's say a single-store operator, versus Mister Spex and the Mister Spex store portfolio.

Speaker #2: What we saw is that these stores have been affected more heavily by the decline in frequency within retail. This is exactly what we observed across the German market, with the long tail of thousands of small opticians.

Speaker #2: And this is exactly what, unfortunately, happened to us. So the loss in frequency translated to a loss in revenue, and of course, this resulted in a situation that was not living up to our expectations.

Speaker #2: So yes, we have been below our expectations in the OES portfolio. Regarding the integration, we learned that having these stores—even if it were only six stores—at basically one point in time, with an integration team of only one headcount, is not enough in order to really implement all the initiatives at the perfect speed and at the perfect timing, which we would want to see.

Tobias Krauss: Regarding the integration, we learned that having these stores, even if it were only six stores at basically one point in time with an integration team of only one headcount, is not enough in order to really implement all the initiatives in a perfect speed and at a perfect timing, which we would want to see it. Meaning that we are absolutely on track when it comes to the integration plan, even though we did not. Looking back, and considering the difficult situation which the German market and the small traditional stores have been in, we invested more capacity to speed up the integration process. As of today, we are implementing a new software within the OAS stores. They will all be on the same software end of 2026. More importantly, we built a new brand strategy around these stores.

Speaker #2: Meaning that we are absolutely on track when it comes to the integration plan, even though we did not. But looking back, and considering the difficult situation which the German market and the small traditional stores have been in, we invested more capacity to speed up the integration process.

Speaker #2: So as of today, we are implementing a new software within the OES stores. They will all be on the same software by the end of 2026.

Speaker #2: More importantly, we built a new brand strategy around these stores. We already told you that we're not going to rebrand them to Mister Spex, but from a marketing point of view, there will be a higher degree of standardization, which will end up in, for example, websites all having the same corporate identity.

Tobias Krauss: We already told you that we are not going to rebrand them to Mister Spex, but from a marketing point of view, there will be a higher degree of standardization, which will end up in, for example, websites which will be all having the same corporate identity. More importantly, we started to initiative, which leads to drive to store. We started a drive to store initiative some weeks ago, and it already shows results. From a synergy point of view, we are catching up. We did not expect the degree of decline which we saw in H1 2026. Nevertheless, if we look at the performance end of H1 regarding our OES portfolio and compare it to the market numbers, even with our OES portfolio and not having all the synergies in place, we outperformed the market.

Speaker #2: And more importantly, we started an initiative which leads to drive to store. So, we started a drive-to-store initiative some weeks ago, and it already shows results.

Speaker #2: So, from a synergy point of view, we are catching up, but we did not expect the degree of decline which we saw in H1 2026.

Speaker #2: Nevertheless, if we look at the performance at the end of H1 regarding our OES portfolio and compare it to the market numbers, even with our OES portfolio not having all the synergies in place, we outperformed the market.

Speaker #2: Speaking about marketing initiatives, as you saw, we drastically reduced marketing spend year on year. The main reason for this is that we do not turn marketing spend into non-profitable revenue anymore.

Tobias Krauss: Speaking about marketing initiatives, as you saw, we drastically reduced marketing spend year-on-year. The main reason for this is that we do not change marketing spend into non-profitable revenue anymore. We will reallocate the marketing spend from performance marketing towards upper funnel marketing. What we saw in the last years is that having spent so much money into the online channel and performance marketing, the brand recognition has declined, and the relevance within the market has declined. This is a development which we will stop, beginning this year, and we will start to heavily invest into our upper funnel marketing initiatives. We may even get to a point to work with testimonials. Basically change the way we marketed our brand and our products in the last years compared to what we will do in the future.

Speaker #2: And we will reallocate the marketing spend from performance marketing towards upper-funnel marketing. Because what we saw in the last years is that, having spent so much money into the online channel and performance marketing, the brand recognition has declined.

Speaker #2: And the relevance within the market has declined. This is a development which we will stop beginning this year. We will start to heavily invest into our upper-funnel marketing initiatives. We may even get to a point where we work with testimonials.

Speaker #2: So, basically, change the way we marketed our brand and our products in the last years compared to what we will do in the future.

Speaker #1: Yeah. Hi, Cedric. Let me take products in the last years compared to what we will do in the future. Yeah. Hi, Cedric. Let me take on the question on personnel expenses.

Benjamin Schenck: Yeah. Hi, Cedric. Let me take-

Tobias Krauss: products in the last years compared to what we will do in the future.

Benjamin Schenck: Yeah. Hi, Cedric. Let me take on the question on personnel expenses. Yes, personnel expenses increase, in total, roughly good EUR 2 million in Q2 are related to the closure of our Berlin Spandau production. That's a non-recurring effect that is also subsequently adjusted. It needs to be taken out if you look at the core operating performance.

Speaker #1: So yes, personnel expenses increased in total. Roughly a good €2 million in Q2 are related to the closure of the Lynch Bundle production. So that's a non-recurring effect that is also subsequently adjusted.

Speaker #1: And so, it needs to be taken out if you look at the core operating performance.

Speaker #3: Okay. Very clear. Thank you.

Cédric Rossi: Okay. Very clear. Thank you.

Speaker #1: Thank you. Thank you, Cedric.

Tobias Krauss: Thank you.

Benjamin Schenck: Thank you, Cedric.

Speaker #4: The next question is from the line of Ralph Marignoni, Current Private Bank. Your line is now open. Please go ahead.

Operator: The next question is from the line of Ralf Marinoni of Hauck Aufhäuser Lampe. Your line is now open. Please go ahead.

Speaker #3: Thank you. Good morning, everybody. I've got a question regarding your partner model with Avato and own stock. Maybe you can quantify the cost savings for next year? And my second question is: Is it possible that you reach break-even also on a reported basis, with EBIT and EBITDA, in the next year following this new partnership?

Ralf Marinoni: Thank you. Good morning, everybody. I have got a question regarding your partner model with Arvato and Rodenstock, and maybe you can quantify the cost saving for the next year. My second question is it possible that you reach break even also on an unadjusted basis with EBIT and EBITDA in the next year following this new partnership?

Speaker #1: Hi, Ralph. Good to speak to you. Let me take on that question.

Benjamin Schenck: Hi, Ralf. Good to speak to you. Let me take on that question.

Speaker #3: Hi.

Ralf Marinoni: Hi.

Speaker #1: So with the closure of our production of logistics sites in Berlin and the subsequent move to work to set up where Avato does logistics fulfillment and Rohnschlag does the production, outside of Germany, both of them, we expect significant cost savings.

Benjamin Schenck: With the closure of our production logistics sites in Berlin and the subsequent move towards the setup where Arvato does the logistics fulfillment and Rodenstock does the production, outside of Germany, both of them, we expect significant cost savings. We cannot and will not quantify them at this stage. At the same time, we expect significant effects from next year onwards, once this is fully effective. As we also wrote in the press release, we are going to close the Berlin Spandau location by the end of this year, so there is a gradual transition in H2. With respect to your second question, at this stage, we are not giving out a guidance on next year's results.

Speaker #1: Though we cannot and will not quantify them at this stage, at the same time, we expect significant effects from next year onwards, once this is fully effective.

Speaker #1: As we also wrote in the press release, we're going to close the Berlin Funnel location by the end of this year. So there is a gradual transition in the second half.

Speaker #1: And with respect to your second question, at this stage we're not giving out guidance on next year's results.

Speaker #2: Probably, Ralph, to add to your question regarding the outsourcing project—of course, this will have a positive effect on OPEX. But probably more importantly, it will not put us in a position where we would have to put millions into maintaining the infrastructure, which would have been the case in the next years, because there would have been a next cycle of investments into this infrastructure.

Tobias Krauss: Probably, Ralf, to add to your question regarding the outsourcing project. Of course, this will have a positive effect on OpEx. Probably more important, it will not put us into a position where we would have to put millions into maintaining the infrastructure, which would have been the place in the next years because there would have been a next cycle of investments into this infrastructure. The idea of the Mister Spex of the future is to optimize our capital allocation strategy, and we will only put money into things which are relevant to the customer.

Speaker #2: And the idea of Mister Spex in the future is to optimize our capital allocation strategy. We will only put money into things that are relevant to the customer.

Speaker #2: And since the customer doesn't really care who is doing the production logistics parts, from a capital allocation point of view and an investment point of view, this move is important in order to execute on our future strategy and only put money where the customer sees it and where the customer sees potential for differentiation between us and all the competitors.

Tobias Krauss: Since the customer does not really care who is doing the production logistics part, from a capital allocation point of view and an investment point of view, this move is important in order to execute on our future strategy and only put money where the customer sees it and where the customer sees potential for differentiation between us and all the competitors.

Speaker #3: Okay. I understand that right now it's too early to quantify the results for next year. So, thank you very much for your answer.

Ralf Marinoni: I understand that right now it is too early to quantify the results for next year. Thank you very much for your answer.

Speaker #1: Thank you.

Benjamin Schenck: Thank you.

Tobias Krauss: Thank you.

Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.