Global Blue 2025 Q4 Earnings Strong Performance as Net Income Surges 374.2%

Global Blue (GB) reported its fiscal 2025 Q4 earnings on Jun 04th, 2025. The company's results exceeded expectations with a 20% revenue increase, driven by robust growth across all segments. Despite the slight decline in stock price, Global Blue maintained its momentum with impressive financial metrics. The guidance remains in line with previous forecasts, indicating stability and confidence in future performance. The strategic acquisition by Shift4 is anticipated to further bolster Global Blue's market position and enhance integration into a comprehensive payment processing platform.

Revenue
The Group reported a revenue of €126.8 million, marking a 20% increase year-over-year. Tax Free Shopping Solutions led the growth with a 22% increase, reaching €93.7 million, driven by significant Sales-in-Store progress. Continental Europe contributed €77.8 million, up 24%, while Asia Pacific added €16.0 million, rising 15%. Payments experienced a 12% increase to €24.4 million, benefiting from pricing strategies, and Post-Purchase Solutions saw a 25% rise to €8.7 million, boosted by ZigZag's strong performance.

Earnings/Net Income
Global Blue returned to profitability with an EPS of $0.06 in 2025 Q4, reversing a loss of $0.03 per share from 2024 Q4. The company achieved a remarkable turnaround in net income, reporting $14.73 million, a 374.2% positive swing from the previous year's loss. This marks a record high for fiscal Q4 net income in five years. The EPS reflects a positive financial recovery.

Post-Earnings Price Action Review
The strategy of purchasing Global Blue shares following a revenue miss and holding them for 30 days has proven ineffective, yielding a total return of -15.44%. Compared to a benchmark return of 78.88%, the strategy's excess return is -94.31%, highlighting a substantial underperformance. The negative Sharpe ratio of -0.05 indicates a poor risk-adjusted return, emphasizing the strategy's lack of success. Additionally, the maximum drawdown reached -70.68%, coupled with a volatility of 64.36%, which underscores the significant risk involved. These metrics reflect the strategy's inability to mitigate losses and capture gains, suggesting a need for reevaluation of investment approaches.

CEO Commentary
Jacques Stern, CEO of Global Blue, expressed satisfaction with the company’s strong yearly performance, highlighting a 20% revenue growth in line with Sales-in-Store growth, significantly outperforming the luxury market due to unique exposure to high net worth shoppers. He emphasized that this robust growth, coupled with high operating leverage, resulted in a record-breaking Adjusted EBITDA of €202 million, a 36% increase. Stern also noted that the acquisition by Shift4 represents a strategic turning point, with the transaction expected to close in Q3 2025, positioning Global Blue for future success.

Guidance
Global Blue anticipates continued growth, with expectations for FY25/26 to deliver revenue in line with prior performance, maintaining momentum in key segments. The company aims to achieve net leverage below 2.5x, leveraging strong cash conversion and operational efficiency. The successful completion of the Shift4 acquisition is expected to enhance Global Blue’s market positioning and integration into a broader payment processing platform.

Additional News
On February 16, 2025, Global Blue and Shift4 entered into a definitive agreement under which Shift4 will acquire 100% of Global Blue shares. The acquisition, valued at approximately $2.5 billion, is expected to close during the third quarter of 2025, subject to regulatory approvals and customary closing conditions. In addition, Equiniti Trust Company reported that approximately 96.66% of Global Blue's shares have been tendered as of May 20, 2025. Shareholders are urged to read tender offer documents carefully to make informed decisions.