Shelly Group – 2025 Q2 cons review – Stable growth and expansion to new markets

Stable growth and expansion to new markets

Q2 2025 consolidated results

• Another steady sales growth in Q2, where overall sales increased by 32.8% to EUR 56mln (BGN 109.5mln). In that, sales of products reached EUR 53.6mln (BGN 104.9mln) marking a 29.1% YoY increase.
• Total assets increased 48.3% to EUR 104mln (BGN 204mln). The biggest driver was Trade receivables (going up 39% to EUR 43.9mln, adding EUR 12.3mln). Additionally, Cash increased 77% to EUR 18.6mln, Assets with the right to use skyrocketed from nearly zero to EUR 5.3mln, Inventory went up 51% to EUR 20.4mln and Intangible assets increased 90% to EUR 8.2mln.
• The company is very liquid considering their cash. Cash is nearly 7x their short-term loans and 2.5x their total debt. The rise in lease liabilities compared to last year is due to their move to rented office space.
• On 02.06.2025 the company declared a dividend in the amount of EUR 0.13 per share or 0.26% dividend yield.
• On 23.06.2025 the company announced the results from the increase in their capital. It was increased by 51,501 shares of BGN 1.00 each. The increase was aimed at stimulating company employees by making them shareholders.
• On 08.07.2025 the company announced that their expected H1 results would be in line with the targeted levels set at the beginning of the year. In the same time, considering the instability associated with the possible tariffs from the US, they announced that since the US share of overall sales is negligible, the possible effect would be minimal.
• On 25.07.2025 the management announced that the company is expanding its share in the growing sector of “intelligent energy” – their partnership with the global leader of solar technology EcoFlow would present 2 products (Shelly Plug S Gen3 and Shelly Pro 3EM), who will be fully integrated with the Shelly app and the software platforms of EcoFlow. The products are expected to enable seamless, cross-system management of energy consumption, storage and generation. In the future Shelly will likely gain customers among the producers of solar systems, balcony power plants and energy storage solutions. The integration of EcoFlow devices into the Shelly app and vice versa allows households to manage their entire energy infrastructure with greater convenience and reliability.
• On 15.08.2025 the company announced their consolidated H1 results. Among other things, it was mentioned that the company continues to expand its international distribution channels and presence in new markets, develops its portfolio of products and services and increases the share of products designed for professional users. The number of professional installers using Shelly products has more than doubled, reaching 2,400 (December 31, 2024: 900). The DACH region is pointed out as the main factor for the growth. Additionally, Italy and the Scandinavian region have shown very positive growth. The expectations for YE are for sales in the range of EUR 145-155mln, EBIT of EUR 35-40mln.
• On 02.09.2025 the company announced that one of Europe’s leading private banks – Berenberg – has started covering the company and having recommendation “BUY” with target price of EUR 70 per share.
• On 11.09.2025 the company announced that through a new wide product selection of Smart Miniature Circuit Breakers (MCB) they are getting into a new market for utilities management and monitoring of professional and commercial industrial spaces. The current market is valued at USD 2.5 billion but grows at 10.5% p.a. and is expected to reach USD 5.8 billion by 2033. The new products are supposed to start the DEKRA certification process in September and expectations are for it to finish in 2 months, after which VDE certification will start. Mass production is expected to commence in the beginning of 2026. The move will make 2026 very interesting to see the development of this business line, as well as the line for smart locks, which performed significantly beyond expectations since its implementation in early 2025.
• Additional revenues jumped from EUR 0.4mln to EUR 3.8mln and are due to revenues from FX operations or FX changes. Over the last year the Chinese Yuan (CNY) dropped ca. 9% with regards to the EUR and it is likely to be the main reason for it since the production is outsourced to production partners in China and the main markets are in EU.
• The sales of IoT products make up more than 95.9% of the revenues, hence the additional revenues, which compromise of sales of services, rents, FX instruments, play a marginal role and their movements are largely irrelevant. They have revenues from their app, and it is likely that it is accounted under “services” revenues. It has grown 68% to EUR 0.35mln and still too little to be important.
• We see a significant spike in Sales cost, which increased 50.5% to EUR 6mln (BGN 11.8mln). In that every sub account marks a significant increase – transport of goods to clients (60% to BGN 1.3mln), certification of products (645% to BGN 0.6mln), exhibitions (32% to BGN 1.3mln) and marketing and advertising (44% to BGN 8.4mln). Clearly, the focus is on market expansion, and the management is forward looking.
• Within Other expense, which grew nearly 9x to EUR 4mln (BGN 7.9mln) the biggest chunk is FX related expenses growing from BGN 0.1mln to BGN 5.6mln. This could be the result of the growing number of orders from their outsourced producers – inventory has gone up 51% to EUR 20.4mln (BGN 39.9mln).
• Geographical distribution – quarterly reports do not disclose it, but the annual indicates that sales in the EU (including Bulgaria) have shrunk in relative value from 98.5 to 87.5% by YE 2024 due to the overall growth of sales outside of EU. Considering this trend, it is possible that by Q2 2025 the EU share to be around 84% and further drop to 80% by YE 2025 if the sales expansion for non-EU markets happens. On the other hand, considering the focus of the company on the DACH market, as well as Poland, Italy and the Nordics, it is also possible that this trend is reversed.
• Considering the growth of administrative expenses by 20% to EUR 9.8mln (BGN 19.2mln), it is clear that the management continues the focus on efficiency and process optimization procedures. EBIT and EBITDA, however, suffered because of the large increases in Sales cost and FX related expenses. EBIT grew just 12.2% to EUR 12.2mln (BGN 23.8mln) and EBITDA 13% to EUR 12.6mln (BGN 24.7mln).
• Net Profit decreased even less by 9.8% to EUR 10.2mln (BGN 19.9mln) due to the increased financial expenses – FX and interest for leasing interest. Net Profit margin dropped from 22% to 18.2%.

Full article can be accessed here.