Can GB sustain its Q1 2025 earnings growth?

**Global Blue Group (GB) is likely to sustain its Q1 2025 earnings growth**, based on several key factors:

1. **Strong Revenue Growth**: GB reported a robust 20% year-on-year increase in revenue for Q3 2025, reaching €131 million. This growth was driven by significant progress across all divisions, indicating a strong market presence and financial performance.
2. **EBITDA Improvement**: The company achieved a significant 31% year-on-year increase in adjusted EBITDA, improving the margin by 3.4 points to 39.7%. This led to an improvement in net income, which increased by 58% to €14 million.
3. **Tax-Free Shopping Solutions Growth**: The Tax-Free Shopping Solutions segment, which accounts for 74% of group revenue, saw a 22% revenue growth to €98 million. This segment's strong performance underscores its importance to the company's overall revenue.
4. **Payments Division Growth**: The Payments division generated a 13% year-on-year revenue increase, driven by a higher proportion of international card transactions. This diversification in revenue streams contributes to the company's overall growth and resilience.
5. **Strategic Acquisition**: The acquisition of GB by Shift4 is expected to create a global leader in commerce and payment technologies, serving the retail and hospitality sectors across 50+ countries. This strategic move is likely to enhance GB's market position and contribute to future growth.
6. **Financial Stability**: GB successfully reduced its net leverage ratio to 2.6 times from 3.6 times last year, showing improved financial stability. This reduction in leverage ratio indicates a stronger financial position, which is conducive to sustaining earnings growth.

While GB faces challenges such as increased net finance costs and the impact of higher interest rates on senior debt, the company's strong revenue growth, EBITDA improvement, and strategic acquisitions suggest that it is well-positioned to sustain its Q1 2025 earnings growth.