York-based online musical equipment retailer Gear4music plc said its total revenue for the three months to December 31, 2025, rose 32% to £64.6 million.
Gear4music said it has now upgraded its expectations for FY26, FY27 and FY28.
“Very strong revenue growth continued through the peak seasonal trading period,” said Gear4music.
“Gross margin increased to 29.0% (FY25 Q3: 28.1%), reflecting continued pricing discipline. Gross profit increased to £18.7m (FY25 Q3: £13.7m), an increase of £5.0m year on year.
“FY26 EBITDA is now expected to be ahead of consensus market expectations, with EBITDA of not less than £17.7m …
“FY27 Board expectations upgraded reflecting the continuing very strong underlying trading and revised capital expenditure profile.”
Gear4music executive chair Andrew Wass said: “I am pleased to report a very strong third quarter performance, with the Group continuing to deliver significant revenue growth through the peak seasonal trading period.
“Total revenue for the three months to 31 December 2025 increased by 32% to £64.6m (FY25 Q3: £49.0m), reflecting strong momentum across all geographies. This broad-based growth demonstrates the effectiveness of our strategy and the continued appeal of our proposition to customers.
“UK revenue increased 27% to £37.8m, with our York warehouse running close to maximum capacity. As previously announced, plans are in place to expand UK-capacity in FY27 in line with our long-term strategy.
“European and Rest of the World revenue increased 39% to £26.8m, underlining the strength and scalability of our international platform.
“Gross margin improved to 29.0% (FY25 Q3: 28.1%), reflecting ongoing pricing discipline and operational execution in improved market conditions. As a result, gross profit increased by £5.0m to £18.7m compared with the prior year period. The Board is encouraged by the quality of this cash-generative growth, which has translated into profitability ahead of consensus market expectations for the full financial year.
“Alongside this strong trading performance, we have continued to make progress against our long-term infrastructure plans. The Group has signed a 15-year lease for a new UK warehouse in Sherburn in Elmet near York, providing the additional capacity and efficiency required to support future UK growth.
“Following further review, the expected capital expenditure for the new UK automated warehouse has been re-phased, with £10.2m now anticipated in FY27 and £8.5m in FY28. This re-phasing derisks project delivery and reduces the near-term financial impact and lowers anticipated borrowing requirements.
“While the macro-economic and consumer environment remains uncertain, the Group continues to deliver strong momentum and improving profitability, supported by a clear and disciplined strategy for sustainable growth.
“Given the continued strength of trading and the benefits of the revised capital expenditure profile, the Board has upgraded its expectations for FY26, FY27 and FY28.
“The Board would like to thank all our colleagues across the business for their continued commitment and hard work, which have been instrumental in delivering this performance.“