Page — 1
Interim report
H1 2025/26
June-November 2025
Page — 2
Management’s review
Interim report H1 2025/26
Q2 marked Bang & Olufsen’s 100-year anniversary, which was celebrated
with special events and brand campaigns around the world. Group revenue in
local currencies declined by 1.2%, while the branded channels reported
growth of 5.4% in local currencies. The gross margin was 57.9%, an increase
from 53.7% last year, with record-high margin generated in product sales.
Like-for-like sell-out increased by 7%, with strong traction from the Win Cities
of 19% sell-out growth.
November marked a historic milestone as we celebrated our 100th
anniversary, honouring a century of iconic craftsmanship and timeless design.
We saw a small decline in revenue in the second quarter, mainly due to the
timing of the launch of two additions to our product portfolio - the Beo Grace
earpieces and the Beosound Premiere soundbar. We expect these launches,
and two new flagship stores now open in Paris and San Francisco to contribute
to revenue growth in the second half of the financial year in line with the
narrowed outlook announced last week.
Nikolaj Wendelboe, CEO (interim) & CFO
Financial highlights (Q2 24/25 in brackets)
· Like-for-like sell-out grew by 7% (1%). Like-for-like sell
out for Branded channels grew 8% (5%).
· Reported revenue declined by 3.2% (-0.4%) year-on-
year, or -1.2% in local currencies (-0.9%), to DKK 676m
(DKK 698m).
· Revenue from Branded channels increased by 5.5%
(-5%), or 5.4% in local currencies (-5.9%).
· Gross margin was up by 4.2pp to 57.9% (53.7%).
· EBITDA before special items was DKK 26m
(DKK 72m), EBITDA margin before special items
of 3.8% (10.2%).
· EBIT before special items was DKK -36m
(DKK 12m). EBIT margin before special items
of -5.3% (1.7%). Excluding one-off related cost for the
centennial, the EBIT-margin before special items was
around 0%.
· The free cash flow was DKK -33m (DKK 30m).
FY 2025/26 financial guidance narrowed
· Revenue growth in local currencies: 1% to 5%
(previously 1% to 8%).
· EBIT margin before special items: -3% to 1%
(unchanged).
· Free cash flow: DKK -100m to -50m (previously
DKK -100 to 0m).
Business highlights
· Announcement of the new earpieces, Beo Grace, in
September 2025, with launch in November 2025.
· Reloved programme launched in October 2025,
offering refurbished products on our ecom channel.
· Announcement of our soundbar Beosound Premiere in
November 2025, with launch at the end of quarter.
· Opening of new flagship store in Paris in November,
featuring our Culture store concept.
· Roll out of refreshed brand identity and centennial
brand campaign, including a three-week window
take-over of Harrods in November 2025.
· Global events held to celebrate the centennial year,
anchored by an event at the Danish Royal Opera to
honour B&O’s strong heritage.
· Planning the opening of new flagship store in San
Francisco in December, our largest flagship store to
date, featuring the Culture store design.
· On 7 January 2026, Nikolaj Wendelboe was
appointed interim CEO, replacing Kristian Teär (see
company announcement no. 25.33).
· client base grew by x% and the number of clients
owning two or more Bang & Olufsen products
increased by x% quarter-on-quarter.
Q2 highlights
Management’s review
Interim report H1 2025/26
Revenue growth in LC*
-1.2%
Gross margin
57.9%
EBIT margin bsi**
-5.3%
Free cash flow, DKK
-33m
* Local currencies ** Before special items
Q2 2025/26 conference call
14 January 2026, at 10.00 CET via
https://bo.nexahub.io/events/interim-report-2nd-quarter-202526
Dial-in details (Pin: 193621):
DK: +45 78768490
UK: +44 2037696819
US: +1 6467870157
Page — 3
Management’s review
Interim report H1 2025/26
For definitions, see note 8.7 to the Annual Report 2024/25, Return on assets, return on invested capital and return on equity, are calculated on last twelve
months (LTM) basis.
Key figures
Q2
YTD
Year
(DKK million)
2025/26
2024/25
2025/26
2024/25
2024/25
Key figures
Gross margin, total, %
57.9 53.7 58.2 54.3 55.0
Gross margin, Products, total %
54.4 48.6 54.1 49.6 50.8
Gross margin, Brand Partnering & other activities,
%
89.7 94.4 91.6 92.2 87.4
Growth in local currencies, %
-1.2
-0.9
-2.3
-6.3
-1
Like-for- like sell-out growth, %
7 1 7 -1 4
EBITDA margin before special items, %
3.8 10.2 5.1 8.9 10.6
EBITDA margin, %
3.0 9.7 4.0 8.4 10.2
EBIT margin before special items, %
-5.3 1.7 -5.3 -0.4 1.0
EBIT margin, %
-6.2 1.1 -6.4 -1.0 0.6
Marketing cost ratio, %
14.1
9.3
12.8
9.7
8.3
Incurred development costs before capitalisation
ratio, %
15.6 13.0 16.9 13.7 14.4
Return on assets, %
-3.9 -2.8 -3.9 -2.8 -1.3
Return on invested capital, %
-6.8 -1.4 -6.8 -1.4 1.9
Return on equity, %
-9.0 -6.4 -9.0 -6.4 -2.8
Full-time employee (FTE) at end of period
1,179 1,002 1,179 1,002 1,073
Stock-related key figures
Earnings per share, basic (EPS) and diluted (EPS-
D), DKK
-0.4 -0.1 -0.7 -0.2 -0.2
Price/Earnings
-33.1 -92.3 -19.4 -39.7 65.9
Q2
YTD
Year
(DKK million)
2025/26
2024/25
2025/26
2024/25
2024/25
Income statement
Revenue
676 698 1,193 1,242 2,553
EMEA
342 352 576 603 1,253
Americas
79 86 141 155 317
APAC
185
182
344
347
693
Brand Partnering & other activities
70 78 132 138 290
EBITDA before special items
26 72 60 111 271
EBITDA
20 68 47 104 261
EBIT before special items
-36
12
-63
-5
26
EBIT
-42 8 -76 -12 16
Special items, net
-6 -4 -13 -7 -10
Financial items, net
-7 -12 -8 -13 -14
Profit/loss before tax (EBT)
-49 -4 -84 -25 2
Profit/loss for the period
-53 -13 -90 -30 -29
Financial position
Total assets
2,294 2,223 2,294 2,223 2,340
Equity
1,026 942 1,026 942 1,144
Cash
130 87 130 87 145
Available liquidity
117 159 117 159 350
Capital resources
267 319 267 319 600
Net interest-bearing deposit/debt
-92
-45
-92
-45
134
Net working capital
289 250 289 250 216
Cash flows
Cash flows from operating activities
42 84 -35 87 256
Operational investments
-75 -54 -133 -93 -240
Free cash flow
-33 30 -168 -6 16
Page — 4
Management’s review
Interim report H1 2025/26
Beo Grace marks a new expression of Bang & Olufsen in-
ear design, where advanced sound technology meets
sculptural form. Crafted from hand-polished aluminium
with a refined, lightweight silhouette, Beo Grace is
designed to be worn and admired – a modern luxury
object as much as a performance earphone.
At its core, Beo Grace introduces a new acoustic
architecture built around a 12 mm titanium driver and
optimised for Dolby Atmos. Adaptive Active Noise
Cancellation tailors sound and silence in real time, while
TrueTransparency
TM
delivers lifelike awareness of
surroundings. NearTap
TM
allows intuitive volume control
by tapping the skin in front of the ear, and AI-based voice
enhancement ensures clear calling in any environment.
Built on our proprietary Amadeus software platform, Beo
Grace reflects our belief that luxury technology requires
full control of the experience. The platform enables
features such as NearTap
TM
, Case Streaming and
advanced sound personalisation, while a custom battery
management system supports more than four times the
industry standard in charge cycles.
Rooted in over a century of craftsmanship and acoustics
expertise, Beo Grace brings heritage into a new form.
Designed to endure in both performance and appearance,
it represents a future icon for a new generation of Bang &
Olufsen customers.
Case study:
Introducing Beo Grace
”Crafted from aluminium, encased in
leather and featuring the newest in control
technology and audio processing, the
jewel-like Bang & Olufsen Beo Grace
earbuds are high art for the ears.”
Wallpaper, 23 September 2025
“The Beo Grace are not just functional
audio devices; they are sculptural objects
that elevate the category of earbuds into
the world of luxury design.”
Forbes, 22 September 2025
“There’s no way around it: The Bang &
Olufsen Beo Grace are expensive. But
they’re also the best pair of wireless
earbuds I’ve used over the last few years.”
Robb Report, 20 November 2025
Page — 5
Management’s review
Interim report H1 2025/26
Developments in Q2 2025/26
On 17 November, we marked the 100th anniversary of
Bang & Olufsen – a truly historic milestone. To celebrate
this occasion, we launched brand campaigns during the
quarter, hosted special events around the world, and
added new products to our portfolio, including the Beo
Grace earpieces and the Beosound Premiere soundbar.
In addition, we rolled out a refreshed brand identity in
connection with our centennial brand campaign. These
markings underpin our strategic execution and celebrate
our strong heritage while looking into the next century of
B&O.
Overall, like-for-like sell-out grew by 7%. For the branded
channels (company-owned stores, monobrand and e-
commerce) like-for-like sell-out grew 8% year-on-year.
Our Win-Cities reported 19% sell-out growth collectively.
The production ramp-up for the earpieces Beo Grace and
Beosound Premiere, announced in September and
November, respectively, has started later than
anticipated, which has affected revenue growth for the
quarter. However, these product launches are expected to
support growth in the second half of the financial year.
Group revenue (sell-in) declined by 1.2% year-on-year in
local currencies. Product sales decreased by 2.2% (0.2 in
local currencies), while branded channel revenue rose
5.5% (5.4% in local currencies) due to growth in company-
owned stores and the monobrand channel.
Revenue in the EMEA region declined by 2.2% in local
currencies. Revenue from company-owned stores grew
double-digit, while revenue from monobrand partners
declined. Declines were seen across central and southern
European markets, while the Nordics reported growing
revenue.
Revenue from the Americas declined by 2.4% in local
currencies. Branded channels grew double-digit,
supported by growth in company-owned stores as well as
the monobrand channel. The APAC region reported
growth of 6.1% in local currencies, supported by double
digit growth across company-owned stores and the
monobrand channel.
Revenue from Brand Partnering & Other activities declined
by 9.7% mainly driven by timing in license income from
automotive.
Gross profit rose to DKK 391m from DKK 374m in Q2 of
last year. The gross margin rose by 4.2pp to 57.9%
compared to 53.7% in Q2 last year. The gross margin from
product sales rose to record high 54.4% and was driven
by improved gross margins across all product categories.
The development was a result of our pricing strategy and
the continued optimisation of our distribution channels.
The gross margin for Brand Partnering & Other activities
declined to 89.7% due to lower share of license income.
EBIT margin before special items was -5.3% compared to
1.7% in Q2 last year. The decline was mainly related to
strategic investments and activities during the quarter
celebrating our centennial year. Excluding one-off costs
related to the celebrations of around DKK 38m, the EBIT-
margin before special items was around 0%.
Free cash flow was DKK -33m compared to a free cash
flow of DKK 30m in Q2 last year. The development was
related to cash flow from operating activities and higher
planned investments in product development and retail
development.
The inventory level was DKK 487m and increased by DKK
13m during the quarter. Overall, the inventory level is
expected to decline during the second half of the year.
Three product innovations
The Beo Grace earpieces, announced in September 2025,
redefines the in-earphone category, in terms of aluminium
material, design and functionality. The in-earphones are
built on our proprietary Amadeus software platform, thus
securing full flexibility in the development of features. A
titanium driver, adaptive ANC, Dolby Atmos optimisation,
NearTapTM volume control, AI-driven speech
enhancement and extended battery life come together to
redefine luxury in-ear listening. The product has been well
received and all available pre orders were sold out.
Production is expected to be at full capacity during second
half or the year.
The Reloved programme was launched in October on our
own ecom channel. With Reloved, we are taking an
important step towards extending the life of our products.
Through this initiative, we offer inspection and
refurbishment services with Bang & Olufsen warranty and
official certification. The launch has been successful with
three out of five monthly product drops sold out within the
first week after launch.
In November, we announced the Beosound Premiere
soundbar, adding a soundbar to the portfolio fit for TVs
from 44” and up. Premiere is built with Wide Stage
TechnologyTM and precision tuning from our Struer
craftsmen powered by our Mozart software platform.
Sculpted from pure aluminium and brought to life with
responsive light and optional 3D-carved oak, it transforms
home audio into a multisensory experience. The product
has been well received, and production is expected to be
at full capacity during the second half of the year.
To celebrate the centennial year, a special collection
inspired by the brand’s heritage was released,
reimagining three of Bang & Olufsen’s iconic products;
H100, Beosound A5 and Beosound A9 5th Gen. In
addition, a Beolab 90 Titan Edition was launched,
reimagining our iconic flagship speaker.
Business review
Page — 6
Management’s review
Interim report H1 2025/26
Building brand awareness and brand equity
As part of the celebration and preparation for the next
century, we officially rolled out a refreshed brand identity
in Q2. The refreshed brand identity honours our heritage
by reintroducing elements from our past such as the
colours Future Blue and Heritage Red. It blends heritage
and forward-thinking to ensure Bang & Olufsen remains
distinct, relevant and timeless.
Our centennial campaign, Sound. Elevated, tells a story of
how Bang & Olufsen has elevated sound for 100 years –
and signals our commitment to shaping the next century of
Beautiful Sound.
Brand campaigns and events were held globally during
the quarter. In Denmark, a centennial event at The Royal
Opera celebrated our Danish heritage alongside smaller
events and press activities.
During the quarter, we saw a general decline in footfall,
while in Denmark and London, where a large number of
the centennial activities was concentrated, footfall
increased. In particular, we saw positive traction for our
window campaign in Harrods, London, in November,
resulting in the best performing month for our Harrods
store to date.
A key strategic focus is a closer and broader engagement
with our clients, and in Q2 we grew our client base by 2%
(quarter-on-quarter). In addition, the number of clients
owning two or more B&O products grew 3%. For the first
half of the financial year, growth was 5% and 6%,
respectively.
Optimising retail footprint and excellence
We continued strengthening the footprint and quality of
our branded retail network across our regions. Our
company-owned and monobrand stores are a key
platform for customer engagement and are therefore
being developed to consistently reflect the B&O luxury
experience.
In EMEA, we opened our new flagship store in Paris in
November, featuring our Culture Store concept, which
offers immersive brand experiences at the crossroads of
luxury, culture and design. The number of stores in Paris
remains unchanged, as one store closed in September
2025.
We also opened two pop-up stores in downtown Oslo and
Zürich Airport. Our pop-up concept tests locations while
increasing brand awareness in the markets. In addition,
we continued the improvement programme with several
stores uplifted while underperforming stores were closed.
In the Americas, we reached a key milestone after
quarter-end by opening our partner-operated flagship
store in San Francisco, which also features our Culture
Store concept. The store is the largest B&O store globally,
spanning 346 sqm of retail space and is the first of three
openings we have planned in California this financial
year.
The planned expansion will proceed with new store
openings in Palo Alto and West Hollywood scheduled for
the second half of 2025/26. Although the initial target
was set for 2025, delays have occurred primarily because
of extended building permit approval processes.
In the APAC region, we continued with improvements,
particularly in China, where several stores were uplifted
while underperforming stores were closed.
Strengthening our retail presence is not only about new
openings, but equally about improving the quality of our
existing network. To support this, we carried out two
strategic relocations, eight uplifts and eight selective
closures during the quarter.
Across our regions, a key driver of progress is our focus on
Win Cities, which collectively delivered a strong 19%
growth compared to last year, having delivered double-
digit growth for the last six consecutive quarters.
New York, London and Hong Kong generated double-
digit growth, while Paris was flat overall, impacted by the
closure of one store in September 2025. Adjusted for the
store closure, Paris grew double-digit.
San Francisco and Tokyo, where we have rolled out the
concept, will be added to our existing Win Cities, New
York, London, Paris and Hong Kong and included in our
cities of execution from Q3 25/26 onwards.
Within multibrand and eTail, we have in recent years
made significant changes and reduced our presence to
improve the quality of our distribution and reinforce our
luxury positioning. While the larger changes have been
completed, we continue to make smaller adjustments for
further optimisation. In EMEA, we have closed 62
multibrand doors since last year, primarily in the
Netherlands, totalling 899 doors at end of Q2 25/26.
Monobrand *
Multibrand
Custom installers
Points of sale, number of doors
30-11-2025
30-11-2024
30-11-2025
30-11-2024
30-11-2025
30-11-2024
EMEA
234 270 899 961 N/A N/A
Americas
22
24
22
20
146
124
APAC
70 73 765 809 N/A N/A
Total
326 367 1,686 1,790 146 124
* Monobrand is including company-owned stores
Page — 7
Management’s review
Interim report H1 2025/26
To mark our 100-year anniversary, we took over the
Brompton Road windows at Harrods as part of our
campaign, Sound. Elevated, following a recent uplift of the
Harrods store. Together, the activation and the renewed
retail space brought a century of design, craftsmanship
and acoustic innovation to one of the world’s most iconic
luxury environments.
Each window paid tribute to a defining decade in Bang &
Olufsen’s history, forming a series of visual time capsules
that showcased our design evolution. The installations
featured iconic products including the debut of Beolab 90
Titan alongside Beolab 8, the Beosound A9 Centennial
Edition and Beosound Premiere.
The activation delivered strong results, with footfall up
64% versus the same period last year. November became
the highest revenue month on record for the store, growing
71% year-on-year, while Q2 revenue increased by 33%
versus Q2 2024/25.
.
Case study:
Harrods Takeover
report H1 2025/26
Page — 8
Management’s review
Interim report H1 2025/26
Like-for-like sell-out
In terms of demand from our end clients, like-for-like sell-
out in EMEA increased by 2% in Q2 compared to last
year.
Like-for-like sell-out for the branded channels, company-
owned stores, monobrand and the ecom channel grew
over the period, while multibrand and eTail declined.
In terms of product categories, our Staged products
delivered single-digit growth compared to Q2 last year.
The Flexible Living category reported double-digit growth,
while the On-the-go category reported a decline.
Revenue
Revenue was DKK 342m (Q2 24/25: DKK 352m),
equivalent to a decline of 2.7% (-2.2% in local currencies).
Revenue from company-owned stores rose double-digit,
while revenue from the monobrand channel declined
single-digit compared to last year, driven by central and
southern European Markets.
Branded channels in the Nordics and London reported
growth year-on-year.
The number of multibrand stores declined by 62 year-on-
year, primarily driven by an adjustment of the network in
the Netherlands. Revenue from eTail declined compared
to last year, mainly due to end-of-life sales of Beoplay EX
in Q2 last year in connection with the launch of Beoplay
Eleven in November 2024.
Overall, revenue from the Staged category increased by
1% while the Flexible Living category increased by 17%,
mainly driven by the strong performance of Beosound A9
5
th
Gen. Revenue from the On-the-go category declined
by 20%, mainly driven by end-of-life sales of Beoplay EX
in Q2 of last year as Beoplay Eleven was introduced in
November 2024. In addition, the quarter saw high
comparable for H100 after its launch in September 2024.
Gross profit
Gross profit amounted to DKK 173m (Q2 24/25:
DKK 173m), corresponding to a gross margin of 51.0% (Q2
24/25: 49.3%).
The margin was positively impacted by a shift in the
revenue mix towards higher-margin categories as well as
improved margins for the On-the-go category due to end-
of-life sales of Beoplay EX in Q2 last year.
H1 2025/26
Revenue was DKK 576m (H1 24/25: DKK 603m). This
represented a decline of 4.4% (-4.5% in local currencies).
The decline was driven by monobrand channel partly
offset by double-digit growth from company-owned
stores and the enterprise channel.
Gross margin increased by 2.9pp to 52.1.%, driven by
increased gross margins across most product categories,
particularly within the flexible living and on-the-go
categories.
EMEA
Q2
YTD
(DKK million)
2025/26
2024/25
2025/26
2024/25
Like-for-like sell-out growth
2% 0% 0% 0%
Revenue
342 352 576 603
Growth in local currencies
-2.2%
2.5%
-4.5%
-7.0%
Gross profit
173 173 300 296
Gross margin
51.0%
49.3%
52.1%
49.2%
Share of total revenue
51%
Page — 9
Management’s review
Interim report H1 2025/26
Like-for-like sell-out
Like-for-like sell-out in the Americas grew by 9%. Branded
channels combined reported a double-digit increase year-
on-year driven by growth in company-owned stores and
ecom, while the monobrand channel had a modest
decline. Like-for-like sell-out reported from the eTail
channel declined.
In terms of product categories, our Staged and Flexible
Living product categories delivered double-digit growth
compared to Q2 last year, while the On-the-go category
declined single-digit.
Revenue
Revenue was DKK 79m (Q2 24/25: DKK 86m), equivalent
to a decline of 7.8% (-2.4% in local currencies).
Revenue from branded channels grew double-digit year-
on-year driven by growth from our company-owned
stores and especially our monobrand channel.
Revenue growth from Custom installers was stable. The
enterprise channel declined as last year was positively
impacted by our collaboration with the Korean luxury auto
maker, Genesis, who has installed Staged products in
selected Genesis showrooms across the US.
Revenue from the eTail channel declined by double-digit
compared to Q2 last year due end-of-life sales of Beoplay
EX in Q2 last year as well as reduced promotional
activities. Revenue from the multibrand channel remained
limited and represented a small share of total revenue in
the Americas.
In terms of product categories, revenue from Staged
products increased by 31% year-on-year. The Flexible
Living category grew 7% compared to Q2 last year. On-
the-go declined by 41% year-on-year mainly driven by
end-of-life sales of Beoplay EX as Beoplay Eleven was
introduced in November 2024. In addition, the quarter
saw high comparable for H100 after its launch in
September 2024.
Gross profit
Gross profit amounted to DKK 45m (Q2 24/25:
DKK 41m). This was equivalent to a gross margin of 56.4%
(Q2 24/25: 48.0%).
The margin was mainly impacted by a change in product
mix towards higher margin products as well as improved
margins across product categories. The on-the-go
category was positively impacted by end-of-life sales of
Beoplay EX in Q2 last year.
Increased tariffs had a negative impact on gross profit of
around DKK 8m.
H1 2025/26
Revenue was DKK 141m (H1 24/25: DKK 154m), equivalent
to a year-on-year decline of 8.2% (-2.7% in local
currencies). Revenue from the monobrand channel and
company-owned stores increased but was offset by lower
revenue from eTail.
Gross margin decreased by 0.7pp to 48.7% mainly
reflecting the impact of tariffs.
Americas
Q2
YTD
(DKK million)
2025/26
2024/25
2025/26
2024/25
Like-for-like sell-out growth
9% 8% 11% -2%
Revenue
79 86 141 154
Growth in local currencies
-2.4%
17.1%
-2.7%
9.2%
Gross profit
45 41 69 76
Gross margin
56.4%
48.0%
48.7%
49.4%
Share of total revenue
12%
Page — 10
Management’s review
Interim report H1 2025/26
Like-for-like sell-out
Like-for-like sell-out in APAC increased by 17%. The
Branded channels reported growth year-on-year driven
by company-owned stores and the monobrand channel.
Like-for-like sell-out in the eTail channel increased, while
the multibrand channel reported a decline.
China’s like-for-like sell-out grew by 22%. Like-for-like
sell-out in the monobrand channel was on a par with last
year apart from sell-out from one partner. South Korea
and Taiwan reported sell-out growth while Japan
reported a decline.
In terms of product categories, double-digit growth rates
were reported across all categories.
Revenue
Revenue was DKK 185m (Q2 24/25: DKK 182m),
corresponding to an increase of 1.5% (6.1% in local
currencies).
Company-owned stores and the monobrand channel
reported revenue growth year-on-year, while the eTail
channel declined.
Revenue from Hong Kong increased year-on-year. Japan
was largely flat year-on-year with increased revenue from
the monobrand channel while South Korea declined year-
on-year and was impacted by high inventory levels with
our partners.
Revenue from China declined by 6.7% (-0.5% in local
currencies) and accounted for approximately 51% of total
revenue in APAC. Revenue from our monobrand channel in
China increased year-on-year.
In April 2025, we took over the online flagship store on the
eTail platform, Tmall, thereby operating the two largest
eTail platforms in China directly. Revenue growth was
reported from Tmall, while overall revenue from the eTail
channel decreased due to end-of-life sales of Beoplay EX
in Q2 last year.
In terms of product categories, revenue from the Staged
category increased by 13%. The Flexible Living category
increased by 51%, with strong performance across most
products, but especially Beosound A9 5
th
Gen. On-the-go
declined by 28%, mainly driven by end-of-life sales of
Beoplay EX in Q2 last year as Beoplay Eleven was
introduced in November 2024. In addition, the quarter
saw high comparable for H100 after its launch in
September 2024.
Gross profit
Gross profit amounted to DKK 110m (Q2 24/25:
DKK 87m), equivalent to a gross margin of 59.7% (Q2
24/25: 47.4%) and an increase of 12.3pp year-on-year.
The margin was mainly impacted by a change in product
mix towards higher-margin products as well as improved
margins across product categories. The On-the-go
category was positively impacted by end-of-life sales of
Beoplay EX in Q2 last year. In addition, the margins were
positively impacted by the takeover of the Tmall online
flagship store in April 2025.
H1 2025/26
Revenue was DKK 344m (H1 24/25: DKK 347m),
equivalent to a year-on-year decrease of 1.0% (increase
of 2.1% in local currencies). Revenue growth was reported
from company-owned stores as well as the eTail channel.
Gross margin increased by 9.1pp to 59.6%, driven by
improved margins across all product categories,
particularly On-the-go.
APAC
Q2
YTD
(DKK million)
2025/26
2024/25
2025/26
2024/25
Like-for-like sell-out growth
17%
-1%
11%
-1%
Revenue
185
182
344
347
Growth in local currencies
6.1%
-13.0%
2.1%
-8.8%
Gross profit
110
87
205
176
Gross margin
59.7%
47.4%
59.6%
50.5%
Share of total revenue
27%
Page — 11
Management’s review
Interim report H1 2025/26
Revenue
Revenue was DKK 70m (Q2 24/25: DKK 78m),
corresponding to a decline of 9.7% (-12.3% in local
currencies).
Overall license income declined by 10%. License revenue
from the automotive industry declined year-on-year
mainly due to timing. We are seeing a general shift in
production from electric to hybrid cars, which has delayed
the timing of license income.
License income from HP declined in line with our
expectations, while TCL has been ramping up according to
plan. In total, license income accounted for 82% of total
revenue in Brand Partnering & other activities (Q2 24/25:
89%).
Revenue from Cisco co-branded products increased year-
on-year.
Revenue related to aluminium production for third parties
increased compared to Q2 of last year.
Gross profit
Gross profit amounted to DKK 63m (Q2 24/25:
DKK 73m), equivalent to a gross margin of 89.7%
(Q2 24/25: 94.4%). The margin declined due to the
change in mix between license and product sales
compared to Q2 of last year.
H1 2025/26
Revenue was DKK 132m (H1 24/25: DKK 138m), equivalent
to a year-on-year decrease of 4.0% (-3.1% in local
currencies). The decline derived mainly from our Cisco co-
branded products due to the ramp-up in H1 of last year
and lower license revenue from HP as expected.
Gross margin was 91.6% compared to 92.2%. This
reflected a modest change in the mix between license and
products sales.
Partnership expansion
In September 2025, RayNeo, a subsidiary of TCL,
announced an audio partnership with Bang & Olufsen.
This development extends the existing relationship with
TCL to include AR glasses. The integration of our audio
technology into RayNeo's AR glasses is planned for
2025/26, and the first glasses were launched in November
2025.
By integrating "Audio by Bang & Olufsen" into RayNeo’s
forthcoming AR glasses, we are transforming audio into an
integral part of how we interact with our surroundings,
consume content and stay connected.
Brand Partnering
& other activities
Q2
YTD
(DKK million)
2025/26
2024/25
2025/26
2024/25
Revenue
70 78 132 138
Growth in local currencies
-12.3%
0.1%
-3.1%
-11.6%
Gross profit
63 73 121 127
Gross margin
89.7%
94.4%
91.6%
92.2%
Share of total revenue
10%
Page — 12
Management’s review
Interim report H1 2025/26
Beosound Premiere redefines the soundbar category by
combining immersive spatial audio with sculptural design
and Bang & Olufsen craftsmanship. Designed to transform
both sound and space, Premiere delivers a high-fidelity
listening experience with depth, clarity and precision.
At its core, Beosound Premiere is built on our patent-
pending Wide Stage technology
TM
, using advanced
beam-forming and digital signal processing to create a
wide and immersive soundstage. Ten custom-engineered
drivers, including an up-firing driver, work together to
deliver faithful, room-filling sound from every direction.
Crafted from aluminium at Factory 5 in Struer, Denmark,
Premiere reflects our expertise in materials and detail,
including the up-firing driver finished with 1,925 precision-
milled holes referencing our founding year. An optional
solid oak cover adds warmth and tactility, offering clients
greater flexibility.
Designed for longevity, Beosound Premiere is Cradle to
Cradle Certified® Bronze and supported by a 5-year
Beocare warranty. With built-in Dolby Atmos 7.1.4 and
Beolink Surround, the system can grow over time as
additional speakers are added.
Case study:
Introducing Premiere
”The launch of Bang & Olufsen’s Premiere
soundbar introduces patent-pending
Wide Stage Technology, which is used to
set this rather bold and sculptural
soundbar apart from much of the
competition and evidence that the 100-
year-old brand is still pushing
boundaries.”
Forbes, 5 November 2025
“The Beosound Premiere is a Dolby Atmos
soundbar that’s more or less a piece of art.
It has a three-dimensional design that,
unlike most traditional soundbars, is meant
to show off its unique driver array rather
than hide it”.
Gear Patrol, 5 November 2025
“Finished in turned aluminium, complete
with 1,925 perforations to mark B&O’s
centenary year, it exemplifies the
company’s renewed focus on highly
crafted products.”
Wallpaper, 6 November 2025
Page — 13
Management’s review
Interim report H1 2025/26
Like-for-like sell-out
Like-for-like sell-out grew by 7% compared to the same
period last year.
Like-for-like sell-out for our branded channels combined
grew 8% compared to Q2 of last year.
In terms of product categories, our Staged category and
Flexible Living categories grew by 8%, and 25%,
respectively. The On-the-go category reported a decline
of 4%.
Revenue in Q2
Revenue in Q2 was DKK 676m compared to DKK 698m in
Q2 of last year. This was equivalent to a decline of 3.2%
year-on-year (-1.2% in local currencies).
The drop in reported revenue related to a decline in
product sales of 2.2% (increase of 0.2% in local
currencies), while Brand Partnering and other activities
declined by 9.7% (-12.3% in local currencies). The decline
in Brand Partnering was mainly driven by automotive due
to timing.
Product revenue, regions
Across regions, branded channels grew by 5.5% (5.4% in
local currencies). Company-owned stores reported
double-digit growth, while the monobrand channel
reported single-digit growth driven by growth in APAC
and Americas, while a decline was reported in EMEA.
Revenue from the multibrand channel and eTail decreased
year-on-year. This decline was primarily due to strong
performance last year following the H100 launch and
end-of-life sales of Beoplay EX in connection with
Beoplay Eleven’s launch in Q2.
Product revenue, categories
Staged category
Revenue increased by 6% to DKK 316m. Revenue growth
was reported across TVs & Soundbars as well as Speakers.
Flexible Living category
Revenue increased by 29% to DKK 129m. Revenue growth
was reported across flexible speakers, with particularly
strong traction from A9 5
th
generation.
On-the-go category
Revenue declined by 28% to DKK 161m. The development
was mainly related to the launch of H100 in September
2024 and the launch of Beoplay Eleven in November
2024, which prompted end-of-life sales of Beoplay EX in
Q2 last year. In comparison, Beo Grace was announced in
September, with modest quantities being shipped from the
end of quarter.
Gross profit
Gross profit was DKK 391m (Q2 24/25: DKK 374m),
corresponding to a gross margin of 57.9% against 53.7%
last year.
Gross profit from regional product sales was DKK 328m
(Q2 24/25: DKK 301m), corresponding to a gross margin
of 54.4% (Q2 24/25: 48.6%). The gross margin improved
across all regions and product categories. This was driven
by a shift in revenue towards higher-margin categories,
particularly Staged and Flexible Living, as well as
improved margins within the On-the-go category.
Gross profit from Brand Partnering & other activities was
DKK 63m (Q2 24/25: DKK 73m), equivalent to a gross
margin of 89.7% (Q2 24/25: 94.4%). The gross margin
declined due to the mix having higher share of product
sales.
Financial review
Revenue split by region, DKKm
Revenue split by category, DKKm
LIKE-FOR-LIKE SELL-OUT GROWTH*
Q2 25/26
Q2 25/26
EMEA
2%
Staged
8%
Americas
9%
Flexible Living
25%
APAC
17%
On-the-go
-4%
Total
7%
Total
7%
* Defined as sell-out from the same stores, provided they were open and active in both periods.
352
342
86
79
182
185
78
70
EMEA
Americas
APAC
Brand Partnering & other activities
Q2 2025/26
Q2 202
4/25
297
316
100
129
223
161
78
70
Staged
Flexible Living
On-the-go
Brand Partnering & other activities
Q2 2025/26
Q2 202
4/25
Page — 14
Management’s review
Interim report H1 2025/26
Currency movements had a positive impact of around
0.4pp on the gross margin for the quarter.
Capacity costs
Capacity costs grew 18% to DKK 433m (Q2 24/25: DKK
366m) mainly driven by increased distribution and
marketing costs.
Development costs increased by DKK 5m to DKK 96m (Q2
24/25: DKK 91m). The incurred development costs before
capitalisation increased by DKK 14m and the ratio was up
by 2.6 pp to 15.6% of revenue. The development was
mainly driven by higher advisory costs and wage costs
coming from new hires, especially in the software area, in
line with our strategic investment plan.
Distribution and marketing costs increased by DKK 63m to
DKK 297m (Q2 24/25: DKK 234m). The marketing cost
ratio was 14.1% compared to 9.3% in Q2 last year. The
increase related to extraordinary centenary activities of
approx. DKK 32m. Excluding this, the marketing ratio was
9.4%.
Administrative expenses of DKK 40m were in line with Q2
of last year (Q2 24/25: DKK 41m).
EBITDA
EBITDA was DKK 20m (Q2 24/25: DKK 68m). This was
equivalent to a margin of 3.0% (Q2 24/25: 9.7%).
EBITDA before special items was DKK 26m (Q2 24/25:
DKK 72m), equivalent to a margin of 3.8% (Q2 24/25:
10.2%).
Special items were DKK 6m (Q2 24/25: DKK 4m) and
related to re-organisation activities.
EBIT
EBIT was a loss of DKK 42m (Q2 24/25: profit of
DKK 8m). This was equivalent to an EBIT margin
of -6.2% (Q2 24/25: 1.1%).
EBIT before special items was a loss of DKK 36m (Q2
24/25: profit of DKK 12m), equivalent to a margin of -
5.3% (Q2 24/25: 1.7%). The decline was mainly related to
strategic investments and activities during the quarter
celebrating our centennial year. Excluding one-off costs
related to the celebrations of around DKK 38m, the EBIT-
margin before special items was around 0%.
Cash flows
Free cash flow was DKK -33m compared to DKK 30m last
year. The year-on-year decrease related primarily to
decreased cash flows from operating activities (DKK 42m)
and a higher outflow to operational investing activities
(DKK 21m).
Cash flows from operational investments totalled an
outflow of DKK 75m, which was DKK 21m higher than last
year (Q2 24/25: DKK 54m) and related to investments in
product development and retail developments in line with
our strategic investment plan.
Cash flows from financing activities were DKK 11m (Q2
24/25: outflow of DKK 78m). The cash flows related to a
net increase in bank loans (repo transactions and ESG-
linked credit facility) of DKK 59m offset by the purchase of
treasury shares for DKK 33m and repayment of lease
liabilities of DKK 15m.
The cash position at the end of the quarter was DKK 130m
(31 August 2025: DKK 151m). Total available liquidity was
DKK 117m (31 August 2025: DKK 198m), consisting of cash
DKK 130m and securities DKK 247m less DKK 260m in
bank loans mainly related to repo transactions.
Net working capital
Net working capital decreased by DKK 27m during the
quarter to DKK 289m (31 August 2025: DKK 316m).
Net working capital ratio to the last 12 months’ revenue
was 11.5% (Q1 25/26: 12.5%).
Trade receivables increased by DKK 117m to DKK 398m.
The increase was driven by higher sales in Q2 than in Q1.
The inventory level was DKK 487m and increased by DKK
13m during the quarter. Overall, the inventory level is
expected to decline during the second half of the year.
Q2
YTD
GROSS MARGIN
2025/26
2024/25
2025/26
2024/25
Staged
58.5%
56.8%
58.4%
57.0%
Flexible Living
57.4% 53.5% 58.1% 53.1%
On-the-go
43.8%
35.4%
43.0%
34.8%
Products, total
54.4% 48.6% 54.1% 49.6%
Brand Partnering & other activities
89.7%
94.4%
91.6%
92.2%
Total
57.9%
53.7%
58.2%
54.3%
Page — 15
Management’s review
Interim report H1 2025/26
Trade payables increased by DKK 103m to DKK 497m,
mainly related to product launches and centenary brand
campaigns and events.
Other short-term liabilities increased by DKK 42m to
DKK 182m during the quarter primarily driven by
employee-related liabilities.
Net interest-bearing deposits/debt
Net interest-bearing debt amounted to DKK 92m,
compared to a deposit of DKK 134m at year-end, 31 May
2025. The decrease was mainly due to the negative free
cash flow of DKK 168m for H1 and the repayment of lease
liabilities. For further details, please see note 7.
.
Case study: Introducing Reloved
Reloved reflects our belief that true luxury lies in design
that endures. The Reloved programme extends the lifetime
of Bang & Olufsen products by inspecting and certifying
pre-owned originals and offering them to new owners
through our own channels. Demand has been strong, with
the first monthly release selling out within a week and
several products gone on launch day.
Each Reloved product is inspected, refurbished and
certified by our authorised technicians in Struer, Denmark,
to meet B&O’s performance and quality standards. All
products are sold with a Bang & Olufsen warranty and
official certification, delivering the same confidence
associated with purchasing something new.
Reloved also reflects our approach to sustainability
through product longevity. By keeping products in use for
longer, the programme supports a circular model that
prioritises restoration over replacement, preserving the
value embedded in materials and craftsmanship.
By making circularity a natural part of the luxury
experience, Reloved reinforces timeless design as both a
customer benefit and a sustainability driver. The
programme demonstrates how durability, heritage and
responsible design create value over multiple product
lifecycles.
report H1 2025/26
Page — 16
Management’s review
Interim report H1 2025/26
Our new flagship store in central Paris, just a few steps
from the Opéra Garnier, strengthens Paris as one of Bang
& Olufsen’s Win Cities and reinforces our presence in one
of the world’s most influential cultural capitals.
The store features our Culture Store concept in France,
blending classic Parisian architecture with Scandinavian
design codes including natural wood, aluminium and
subtle references to our iconic forms and colour palette.
The result is a calm, refined environment that reflects both
heritage and contemporary luxury.
Designed as a house of sound, the flagship store invites
visitors to experience audio as emotion and atmosphere.
Curated listening rooms, intimate cinema spaces and
thoughtfully designed product zones create a destination
for discovery and connection.
The Paris flagship brings our luxury positioning to life
through experience. It is a place where design,
craftsmanship and technology converge, and where Bang
& Olufsen becomes part of the city’s cultural landscape.
Case study:
Paris Flagship Store
report H1 2025/26
report H1 2025/26
Page — 17
Management’s review
Interim report H1 2025/26
Financial performance H1 2025/26
Like-for-like sell-out grew by 5%, while sell-out from
branded channels grew by 4%.
Revenue amounted to DKK 1,193m (H1 24/25: DKK
1,242m), a decline of 4.0% (-2.3% in local currencies).
Revenue from branded channels declined by 3.5% (-2.5%
in local currencies).
EMEA revenue declined by 4.4% compared to H1 24/25
(-4.5% in local currencies). The decline was driven by the
monobrand channel partly offset by double-digit growth
from company-owned stores and the enterprise channel.
Revenue from the Americas declined by 8.2% (-2.7% in
local currencies). Revenue from the monobrand channel
and company-owned stores increased but was offset by
lower revenue from eTail.
APAC revenue declined by 1.0% (growth of 2.1% in local
currencies). Revenue growth was reported from company-
owned stores as well as the eTail channel.
Revenue in the Staged category declined by 4%. Beolab
speakers were largely flat year-on-year while TV’s &
soundbars declined.
Revenue in the Flexible Living category increased by 10%.
Revenue growth was reported across most speakers, with
strong performance from A9 5
th
gen. in particular.
Revenue from the On-the-go category decreased by 12%,
which was driven by the introduction of H100 and
Beoplay Eleven in Q2 of last year, as well as end-of-life
sales of Beoplay EX. The newly launched Beo Grace
began shipping in modest quantities at the end of
November 2025
Revenue from Brand Partnering & other activities
decreased by 4.0% (-3.1% in local currencies) year-on-
year mainly due to the expected decline in income from
HP.
Gross profit increased by DKK 20m to DKK 695m (H1
24/25: DKK 675m). Gross margin was 58.2% (H1 24/25:
54.3%), equivalent to a year-on-year increase of 3.9pp.
The gross margin was favourably impacted by a shift in
the product mix towards higher-margin products as well
as price increases implemented last year.
Currency movements had a positive effect of around
0.4pp on the gross margin and EBIT compared to last
year.
Capacity costs amounted to DKK 771m (H1 24/25: DKK
687m). The increase was driven by higher development
costs as well as distribution and marketing costs while
administrative costs declined.
EBITDA was DKK 47m (H1 24/25: DKK 104m). The decline
was driven by increased capacity costs. This was
equivalent to a margin of 4.0% vs. 8.4% last year.
EBITDA before special items was DKK 60m (H1 24/25:
DKK 111m), equivalent to a margin of 5.1% compared to
8.9% last year.
EBIT was DKK -76m (H1 24/25: DKK -12m), equivalent to a
margin of -6.4% (H1 24/25: -1.0%).
EBIT before special items was DKK -63m (H1 24/25: DKK
-5m) with a margin of -5.3% (H1 24/25: -0.4%).
Special items were DKK 13m (H1 24/25: DKK 7m) and
primarily related to re-organisation activities.
Free cash flow was DKK -168m (H1 24/25: DKK -6m)
primarily driven by a lower EBITDA of DKK 47m
(H1 24/25: DKK 104m) and a negative change in net
working capital of DKK 73m (H1 24/25: negative at DKK
13m).
Our combined capital resources (available liquidity and
the undrawn part of our ESG-linked credit facility)
amounted to DKK 267m (31 May 2025: DKK 600m). The
difference was due to the negative free cash flow,
repayment of lease liabilities and a lower undrawn part of
the credit facility.
Page — 18
Management’s review
Interim report H1 2025/26
Outlook for 2025/26
The outlook for 2025/26 is based on our accelerated
strategic execution to secure long-term profitable growth
and is part of the announced mid-term financial ambitions
for the three-year period covering the financial years
2025/26 to 2027/28.
With six months left of the financial year and based on
the performance of the first half of the financial year, we
have narrowed the outlook ranges for revenue and free
cash flow.
Revenue growth
Revenue growth in local currencies is expected to be from
1% to 5%. Range is narrowed from previously 1% to 8%.
EBIT margin before special items
EBIT margin before special items is unchanged expected
to be from -3% to 1%.
Free cash flow
Free cash flow is expected to be from DKK -100m to
DKK -50m. Range is narrowed from previously DKK -100m
to DKK 0m.
Assumptions
The expectations are subject to the following assumptions:
· Launch of three or more product innovations.
· No deterioration of macroeconomic conditions in our
main markets including negative impact on our partners
retail investment appetite.
· Exchange rates against DKK, including in particular
USD, CNY and EUR, in line with current exchange rate
levels overall.
· CAPEX is expected to be around DKK 320-360m.
· Capacity costs are expected to increase by around DKK
150m from 2024/25.
· No significant impact from change in tariffs compared
to current levels.
Sensitivities
The outlook for 2025/26 is subject to uncertainty related
to consumer sentiment. In addition, there continues to be
geopolitical and economic uncertainty including risks
associated with global trade conflicts.
Forward-looking expectations
The report contains statements relating to expectations
for future developments, including future revenues and
operating results, as well as expected business-related
events. Such statements, including without limitation those
relating to the outlook and the medium-term ambitions,
are subject to uncertainty and carry an element of risk
since many factors, some of which are beyond Bang &
Olufsen's control, may cause actual developments to
deviate significantly from the expectations expressed in
this report. Without being exhaustive, such factors include
general economic and commercial factors, such as market
and competitive matters, supplier issues and financial
issues in the form of foreign exchange, interest rates,
credit and liquidity risk.
Mid-term financial ambitions
· Organic growth: 8% (CAGR* 2025/26-2027/28)
· EBIT margin bsi**: 8% (In 2027/28)
· Free cash flow: DKK 250m (In 2027/28)
Outlook for 2025/26 narrowed
Revenue growth in local
currencies
1% to 5%
Previously 1% to 8%
EBIT margin before
special items
-3% to 1%
Unchanged
Free cash flow (DKK)
-100m to
-50m
Previously -100m to 0m
* Compound annual growth rates ** Before special items
Assumptions
The financial ambitions are based on constant
currencies and on the political and economic
environment and projections at launch. Any change to
these factors may impact the ambitions. The sensitivities
relating to the outlook for 2025/26 apply equally to
the period for the medium-term ambitions.
Page — 19
Consolidated financial statements
H1 2025/26
Q2
YTD
Year
(DKK million)
Notes
2025/26
2024/25
2025/26
2024/25
2024/25
Revenue
4 676 698 1,193 1,242 2,553
Production costs
-285 -324 -498 -567 -1,149
Gross profit
Development costs
5 -96 -91 -182 -170 -340
Distribution and marketing costs
-297 -234 -517 -440 -895
Administrative expenses
-40 -41 -72 -77 -153
Operating profit/loss (EBIT)
-42 8 -76 -12 16
Financial income
Financial expenses
-16 -26 -28 -48 -82
Financial items, net
-7 -12 -8 -13 -14
Profit/loss before tax (EBT)
-49 -4 -84 -25 2
Income tax
-4 -9 -6 -5 -31
Profit/loss for the period
-53 -13 -90 -30 -29
Earnings per share
Earnings per share, basic (EPS)
and diluted (EPS
-D), DKK
-0.4 0.1 0.7 0.2 0.2
0Condensed income statement
Page — 20
Consolidated financial statements
H1 2025/26
Q2
YTD
Year
(DKK million)
2025/26
2024/25
2025/26
2024/25
2024/25
Profit/loss for the period
-53 -13 -90 -30 -29
Items that will be reclassified subsequently to the income
statement:
Exchange adjustments of subsidiaries
Fair value adjustments of hedging instruments
-1 2 -2 -4 -7
Value adjustments of hedging instruments reclassified in
Revenue
-1 3 -2 5 10
Production costs
Tax on other comprehensive income/loss
-1
Items that will not be reclassified subsequently to the income
statement:
Actuarial gains/losses on defined benefit plans
Tax on other comprehensive income
Other comprehensive income/loss for the period, net of tax
Total comprehensive income/loss for the period
-50 -2 -94 -25 -41
1BCondensed statement of comprehensive income
Page — 21
Consolidated financial statements
H1 2025/26
ASSETS
(DKK million)
Notes
30-11-25
30-11-24
31-05-25
Goodwill
Acquired rights and software
Completed development projects
Development projects in progress
5 125 83 148
Intangible assets
Property, plant and equipment
Right-of-use assets
Tangible assets
Non-current other receivables
Deferred tax assets
Total non-current assets
Inventories
Trade receivables
Tax receivable
Other receivables
Prepayments
Securities
7 247 387 380
Cash
7 130 87 145
Total current assets
Total assets
EQUITY AND LIABILITIES
(DKK million)
Notes
30-11-25
30-11-24
31-05-25
Share capital
Translation reserve
Cash flow hedge reserve
-2 -2 -2
Retained earnings
Total equity
Lease liabilities
Pensions
Deferred tax
Provisions
Mortgage loans
Non-current other liabilities
Total non-current liabilities
Lease liabilities
Mortgage loans
Bank loans
7 260 315 175
Provisions
Trade payables
Tax payable
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Condensed statement of financial position
Page — 22
Consolidated financial statements
H1 2025/26
Q2
YTD
Year
(DKK million)
Notes
2025/26
2024/25
2025/26
2024/25
2024/25
Profit/loss before tax (EBT)
-49 -4 -84 -25 2
Financial items, net
Depreciation, amortisation and impairment
Operating profit/loss before depreciation,
amortisation and impairment (EBITDA)
Other non-cash items
Change in net working capital
6 27 32 -73 13 47
Interest received
Interest paid
-16
-19
-28
-43
-83
Income tax received/paid
-5 - -7 2 -10
Cash flows from operating activities
Purchase of intangible non-current assets
-51 -43 -97 -77 -200
Purchase of tangible non-current assets
-23 -11 -36 -17 -39
Sublease payment
Other cash flows from investing activities
-1
-1
-2
Operational investments
-75 -54 -133 -93 -240
Free cash flow
-33 30 -168 -6 16
Purchase of securities
Sale of securities
Financial investments
Cash flows from investing activities
-73 -52 1 -89 -231
Q2
YTD
Year
(DKK million)
Notes
2025/26
2024/25
2025/26
2024/25
2024/25
Repayment of lease liabilities
-15 -13 -28 -24 -46
Repayment of mortgage loans
-1
-1
-3
Proceeds from loans and borrowings
Repayment of loans and borrowings
Purchase of treasury shares
-33 - -37 - -20
Rights issue
Cash flows from financing activities
Cash and cash equivalents, opening
balance
Foreign exchange gain/loss on cash and
cash equivalents
-1 2 1 2 1
Change in cash and cash equivalents
-20 -46 -16 -92 -33
Cash and cash equivalents, closing
balance
Available liquidity
7 117 159 117 159 350
Condensed statement of cash flows
Page — 23
Consolidated financial statements
H1 2025/26
Condensed statement of changes in equity
(DKK million)
Share capital*
Translation
reserve
Cash flow
hedge reserve
Retained
earnings
Total
Equity 1 June 2025
Profit/loss for the period
Exchange adjustments of subsidiaries
-4
-4
Fair value adjustments of hedging instruments
Value adjustments of hedging instruments reclassified in
Revenue
Production costs
Income tax on items that will be reclassified to the income statement
- - - - -
Comprehensive income/loss for the period
Share-based payments
Acquisition of own shares
-
-
-
-37
-37
Equity 30 November 2025
Equity 1 June 2024
Profit/loss for the period
Exchange adjustments of subsidiaries
Fair value adjustments of hedging instruments
Value adjustments of hedging instruments reclassified in
Revenue
Production costs
-1
-1
Income tax on items that will be reclassified to the income statement
- - - - -
Comprehensive income/loss for the period
Share-based payments
Equity 30 November 2024
* The company holds a total of 4,181,499 treasury shares (2,963,183 shares as of 31 May 2025).
Page — 24
Consolidated financial statements
H1 2025/26
1 Basis of reporting
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and
additional Danish disclosure requirements for interim financial reports of listed companies.
No interim report has been prepared for the parent company.
The accounting policies applied in this interim report are consistent with those applied in the Annual Report
for 2024/25.
New standards, interpretations and amendments adopted by Bang & Olufsen
Bang & Olufsen has implemented the International Financial Reporting Standards (IFRS) and amendments effective as
of 1 June 2025 and endorsed by the EU. The implementation of new or amended standards and interpretations had no
material impact on the interim financial statements.
2 Critical accounting estimates and judgements
When preparing the interim financial report, Management makes various accounting estimates and assumptions that
form the basis of the presentation, recognition and measurement of Bang & Olufsen's assets and liabilities. Estimates
and judgements are reassessed on a regular basis.
All critical accounting estimates and judgements are consistent with those applied in note 1.2 to the consolidated
financial statements in the 2024/25 Annual Report, to which reference is made.
3 Seasonality
Due to the composition of the Bang & Olufsen business, some degree of seasonality of revenue must be expected.
Historically, reported revenue has been the highest in the second quarter due to the seasonal nature of the business.
Notes
Page — 25
Consolidated financial statements
H1 2025/26
4 Segment information – Q2
(DKK million)
EMEA
Americas
APAC
Regions, total
Brand Partnering
& other activities
All
Q2 2025/26 revenue by geographics
Revenue
342 79 185 606 70 676
Production costs
-169
-34
-75
-278
-7
-285
Gross profit
173 45 110 328 63 391
Gross margin
51.0%
56.4%
59.7%
54.4%
89.7%
57.9%
Q2 2024/25 revenue by geographics
Revenue
352 86 182 620 78 698
Production costs
-179
-45
-95
-319
-5
-324
Gross profit
173 41 87 301 73 374
Gross margin
49.3%
48.0%
47.4%
48.6%
94.4%
53.7%
(DKK million)
Staged Flexible Living On-the-go Products, total
Brand Partnering
& other activities All
Q2 2025/26 revenue by product category
Revenue
316 129 161 606 70 676
Production costs
-132 -56 -90 -278 -7 -285
Gross profit
184 73 71 328 63 391
Gross margin
58.5% 57.4% 43.8% 54.4% 89.7% 57.9%
Q2 2024/25 revenue by product category
Revenue
297 100 223 620 78 698
Production costs
-128 -46 -145 -319 -5 -324
Gross profit
169 54 78 301 73 374
Gross margin
56.8% 53.5% 35.4% 48.6% 94.4% 53.7%
Gross profit is a segment KPI. There are no unallocated elements, and total gross profit reconciles to the income statement.
Page — 26
Consolidated financial statements
H1 2025/26
Segment information – YTD
(DKK million)
EMEA Americas APAC Regions, total
Brand Partnering
& other activities
All
2025/26 revenue by geographics
Revenue
576 141 344 1,061 132 1,193
Production costs
-276 -72 -139 -487 -11 -498
Gross profit
300 69 205 574 121 695
Gross margin
52.1% 48.7% 59.6% 54.1% 91.6% 58.2%
2024/25 revenue by geographics
Revenue
603 154 347 1,104 138 1,242
Production costs
-307 -78 -171 -556 -11 -567
Gross profit
296 76 176 548 127 675
Gross margin
49.2% 49.4% 50.5% 49.6% 92.2% 54.3%
(DKK million)
Staged
Flexible Living
On-the-go
Products, total
Brand Partnering
& other activities
All
2025/26 revenue by product category
Revenue
555 214 292 1,061 132 1,193
Production costs
-231
-90
-166
-487
-11
-498
Gross profit
324 124 126 574 121 695
Gross margin
58.4%
58.1%
43.0%
54.1%
91.6%
58.2%
2024/25 revenue by product category
Revenue
577 195 332 1,104 138 1,242
Production costs
-248
-91
-217
-556
-11
-567
Gross profit
329 104 115 548 127 675
Gross margin
57.0%
53.1%
34.8%
49.6%
92.2%
54.3%
Gross profit is a segment KPI. There are no unallocated elements, and total gross profit reconciles to the income statement.
Page — 27
Consolidated financial statements
H1 2025/26
5 Development costs
Q2
YTD
Year
(DKK million)
2025/26
2024/25
2025/26
2024/25
2024/25
Incurred development costs before capitalisation
105 91 201 170 368
Of which capitalised
-37
-27
-75
-50
-138
Incurred development costs after capitalisation
68
64
126
120
230
Capitalisation (%)
35.2% 29.8% 37.3% 29.5% 37.5%
Total charges and impairment losses on development projects
28
27
56
50
110
Development costs recognised in the consolidated income statement
96 91 182 170 340
Incurred development costs before capitalisation ratio (% of revenue)
15.6%
13.0%
16.9%
13.7%
14.4%
6 Change in net working capital
Change in
Change in
Change in
(DKK million)
30-11-25
31-05-25
Q2 2025/26 YTD
Q2 2024/25 YTD
2024/25
Inventories
487 447 -40 21 39
Trade receivables
398
348
-50
-38
7
Other receivables*
54 59 5 -3 15
Prepayments
30
42
12
-10
-52
Trade payables
-497 -453 44 25 -56
Other liabilities
-183
-227
-44
18
-
Total
289 216 -73 13 -47
*Other receivables were adjusted for financial receivables related to leases of DKK 1m not included as net working capital at 31 May 2025 (30 November 2025: DKK 0m).
Page — 28
Consolidated financial statements
H1 2025/26
7 Net interest-bearing deposit/debt
Net interest-bearing deposit/debt consists of interest-bearing assets less interest-bearing debt. Interest-bearing assets
consist of securities, cash and finance lease receivables. Interest-bearing debt consists of mortgage loans, bank loans
and lease liabilities. We have placed the majority of our cash in Danish mortgage bonds, all with an AAA S&P rating. To
maintain short-term financial flexibility, we use repo transactions, whereby we can access liquidity on an intra-day basis
if needed by lending our banks bonds in return for cash while committing to a reverse transaction at a predetermined
future date. Bonds are presented as securities on the balance sheet, as ownership of the bonds remains with the
company during the term of the repo. The obligation to return cash for bonds under such repo transactions is recognised
as short-term bank loans. As of 30 November 2025, short-term bank loans of DKK 260 mainly consisted of repo
transactions.
During the quarter, net interest-bearing debt decreased by DKK 68m to DKK 92m.
(DKK million)
30-11-25
30-11-24
31-05-25
Mortgage loans (non-current)
-49 -52 -50
Mortgage loans (current)
-3 -3 -3
Bank loans (current)
-260
-315
-175
Lease liabilities (non-current)
-99 -100 -104
Lease liabilities (current)
-57 -49 -59
Other non-current liabilities*
-1 -1 -2
Interest-bearing debt
-469 -520 -393
Finance lease receivables (non-current)
0 0 0
Finance lease receivables (current)
-0 1 2
Cash (current)
130 87 145
Securities (current)
247
387
380
Interest-bearing assets
377 475 527
Net interest-bearing deposit/debt
-92 -45 134
* Only the interest-bearing part of Other non-current liabilities has been included in net interest-bearing deposit/debt.
During the quarter, net available liquidity increased by DKK 82m to DKK 117m, consisting of cash and securities offset by
repo transactions.
(DKK million)
30-11-25
30-11-24
31-05-25
Cash (current)
130
87
145
Securities (current)
247 387 380
Bank loans (current)
-260 -315 -175
Available liquidity
117 159 350
Including the undrawn part of our ESG-linked credit facility, capital resources were DKK 267m (year-end 2024/25: DKK
600m), consisting of available liquidity of DKK 117m and undrawn committed credit facilities of DKK 150m (year-end
2024/25: DKK 250m).
Page — 29
Consolidated financial statements
H1 2025/26
Financial instruments by category
(DKK million)
30-11-25
30-11-24
31-05-25
Non-current other receivables
22
20
20
Trade receivables
398 347 348
Other receivables
54 56 61
Cash
130 87 145
Financial assets at amortised cost
604 510 574
Securities
247 387 380
Fair value through income statement
247 387 380
Derivatives used for hedge accounting
2 4 1
Fair value through other comprehensive income
2 4 1
Financial assets
853 901 955
Mortgage loans
52 55 53
Bank loans
260 315 175
Lease liabilities
156 149 163
Trade payables
497
426
453
Financial liabilities at amortised cost
965 945 844
Derivatives used for hedge accounting
7 9 7
Fair value through other comprehensive income
7 9 7
Financial liabilities
972 954 851
The fair value is approximately equal to the carrying amount for all financial assets and liabilities.
Securities
Securities comprise listed Danish mortgage bonds and are measured at fair value with all changes in fair value recorded
in the income statement. Bonds are measured using observable market values (level 1 in the fair value hierarchy). We use
repo transactions and as ownership of the bonds remains with us during the term of the repo, the bonds remain
recognised on the balance sheet.
Derivative financial instruments
Derivative financial instruments comprise primarily foreign exchange contracts used to hedge foreign exchange risk
related to unrecognised future transactions. Derivatives are measured at fair value in accordance with level 2 in the fair
value hierarchy using valuation techniques that apply market data such as exchange rates, credit risk and volatility.
See note 7.3 to the 2024/25 Annual Report for an overview of foreign exchange contracts.
9 Subsequent events
On 7 January 2026, Nikolaj Wendelboe was appointed interim CEO, replacing Kristian Teär (see company
announcement no. 25.33). This has not affected the consolidated financial statement. Information related to the
severance package of Kristian Teär will be disclosed in the annual report 2025/26 at the latest.
No other events have occurred in the period from the balance sheet date until the presentation of the financial
statements that materially affect the assessment of the consolidated financial statements.
8 Financial instruments
Page — 30
Consolidated financial statements
H1 2025/26
Management's statement
Executive Management Board:
Board of Directors:
