Gn Store Nord A/s Stock Earnings Reports

Key investor takeaways from GN's Q1 call:

- Portfolio / product: GN launched the Evolve3 enterprise headset family (started shipping in March) and SteelSeries Arctis Nova Pro Omni; Evolve3 premium models drove >50% YoY growth in the premium headset segment (premium ~15% of Enterprise revenue). Management expects further Evolve3 rollouts (mid- and entry-level) to drive stronger H2 contribution and market-share recovery in Enterprise.

- Divestment: GN announced the sale of its Hearing division to Amplifon (announced Mar 16). The carve-out is underway and expected to close toward year-end. Transaction proceeds will be a mix of cash and Amplifon shares (with customary lock-up). An upfront cash tax payment of DKK 1.5–2.0bn is expected, offset by a corresponding tax asset.

- Capital allocation: GN targets post-close leverage of 1.0–1.5x EBITDA and expects to return the significant majority of excess cash to shareholders (share buybacks planned shortly after closing). Management does not plan large-scale acquisitions. GN also expects to reinstate annual dividends.

- Costs, impairments and cash: GN plans structural cost initiatives in 2026 targeting ~DKK 200m savings (supporting ~2 percentage points of margin uplift in 2027). Total one-off cash costs related to separation are estimated at DKK 750m (75% in 2026). Several non-cash impairments were recorded in Q1 (mainly ERP and carve-out related). Net interest-bearing debt was DKK 8.9bn at quarter-end (adjusted leverage ~3.8x).

- Q1 financials (continuing operations): Organic revenue -4% (driven by weak EMEA Enterprise), group gross margin 48.2% (Enterprise gross margin 53.7% but ~2pp lower YoY), adjusted EBITA DKK 6m (0% margin) vs 6% a year ago, free cash flow excluding M&A -DKK 45m. Gaming: -1% organic growth, gross margin 34%, divisional EBITA margin ~11%. Hearing (discontinued) delivered +9% organic growth in the quarter.

- 2026 guidance (continuing operations): Organic revenue growth 0%–6%; adjusted EBITA margin 8%–9% for 2026. Management expects gross margin normalization from Q2 (tariff annualization and one-off warehouse provision effects to reverse). The DKK 200m cost initiatives will primarily impact 2027, targeting an underlying EBITA margin of ~10%–11% in the medium term.

- Regional dynamics: Strong sell-out and double-digit organic growth in North America and APAC for core Enterprise; EMEA remains weak with double-digit organic decline in Q1 due to geopolitical uncertainty, competition at entry price points and distributor inventory reductions. Management expects EMEA weakness to persist for several quarters.