April – June 2025

• Net revenue increased by 15%, totalling SEK 523 (456) million.
• EBIT was SEK 26 (17) million. Adjusted EBIT was SEK 32 (17) million and the adjusted operating margin was 6.2% (3.7%).
• Cash flow for the period was SEK 13 (83) million and the cash position at the end of the period was SEK 188 (350) million.
• Earnings per share before and after dilution was SEK 0.29 (0.17).

January – June 2025

• Net revenue increased by 14%, totalling SEK 925 (812) million.
• EBIT was SEK 11 (24) million, corresponding to an operating margin of 1.2% (2.9%). Adjusted EBIT totalled SEK 21 (24) million, and the adjusted operating margin was 2.3% (2.9%).
• Cash flow for the period was SEK -108 (140) million.
• Earnings per share before and after dilution was SEK -0.14 (0.49).

Significant events during the reporting period
Series C share issue
In April 2025, Pierce Group AB (publ) carried out a directed issue of 1,025,000 series C shares to Nordic Issuing AB to ensure the delivery of performance shares to participants in the LTIP 2024/2027 performance-based share program.
Resignation of Chief Financial Officer
On 15 April 2025, Fredrik Ideström announced his resignation as Chief Financial Officer.
Appointment of Chief Financial Officer
On 12 May 2025, Pierce Group AB (publ) announced the appointment of Fredrik Kjellgren as Chief Financial Officer. He is set to assume the role in the fourth quarter of 2025.

Significant events after the end of the reporting period
No significant events took place after the end of the reporting period.

CEO comments
Financial Performance
Q2 was a strong quarter, marked by accelerating growth momentum that began in March (Q1) and continued throughout the second quarter. We are pleased to report our highest quarterly sales ever, with Q2 revenue growing by 15 percent (20 percent in local currency) compared to the same period last year - despite limited market tailwinds.
As a result, Adjusted EBIT reached SEK 32 million, a significant improvement from SEK 17 million in Q2 2024 - also considering that we absorbed SEK 8 million in non-recurring transformation-related costs during the quarter.
Growth was broad-based across all customer categories, primarily driven by improved stock availability of external brands compared to last year. External brands performed exceptionally well, while private brands growth was softer due to delayed product launches. That said, we executed major launches at the end of the quarter, and the initial customer response to our new private brand assortment has been promising.
Operating expenses remain elevated as we expense all costs related to the implementation of our new tech stack, in accordance with accounting standards that do not allow capitalization of cloud-based systems. In Q2, this amounted to SEK 8 million, similar to Q1 (SEK 9 million), covering overlapping system licenses and external consultants.
Our cash position remains strong at SEK 188 million, and inventory stood at SEK 522 million. Compared to last year, we have significantly invested in inventory breadth and depth. As communicated earlier, we will continue prioritizing product availability and short delivery lead times - core to our position as a leading industry specialist.
Operations
While comprehensive industry data is lacking, we are confident that we are taking market share. Our strategic focus on commercial fundamentals - the broadest and most attractive assortment, competitive (but not always the cheapest) pricing, and fast, reliable deliveries - is yielding results. This focus is helping us attract and retain more customers, accelerating on our journey towards our vision of undisputed market leadership. The improvements have translated into market share gains, a growing customer base, stronger retention, and a rising Net Promoter Score (NPS).
In parallel, we are executing a major transformation of our IT landscape, replacing nearly all core systems. This is a critical step to overcome legacy tech debt and ensure long-term scalability and performance. In Q2, we successfully launched two of our four major platforms: our Customer Data Platform (CDP) and our new Product Information Management (PIM) system. These will enable us to increase personalization and product presentation which will improve the customer experience in an important way and thus further fuel growth.
Operational efficiency measures also continued in Q2, including a reduction of approximately 13 white-collar FTEs across multiple functions. Since the start of our transformation, we have right-sized the company by reducing our white-collar workforce by over 30 percent - from 256 in Q2 2023 to 176 in Q2 2025 - while growing sales by 20 percent. Sales per white-collar FTE has thus increased by more than 70 percent. This was achieved by simplifying processes, reducing bureaucracy, and empowering teams to make decisions.
While downsizing is never easy, I am proud of the productivity gains we’ve realized and extremely proud of the team. We’ve navigated significant change together, and their resilience has been remarkable. The simultaneous increase in our employee Net Promoter Score (eNPS) reflects stronger alignment and engagement across the organization.
Looking Ahead
We are now preparing to launch our two largest systems: our new e-commerce platform and our new warehouse management system. These are complex, high-stakes deployments, and our teams are well-prepared. Rollouts will be phased over the coming quarters, with a pause during November and December to safeguard Black Friday and Christmas sales. We expect full deployment no later than Q2 2026.
As previously communicated, transformation-related costs will continue through 2025, with some expected into early 2026. However, we anticipate a significant reduction starting in Q2 2026 as the new tech stack becomes fully operational. In parallel, our depreciation schedule is easing - several major assets will be fully depreciated by the end of 2025. Combined, the lower transformation costs and reduced depreciation are expected to improve EBIT by SEK 30-40 million on an annualized basis.
With the launch of our new e-commerce platform, we will expand into 12 local markets currently served through our .eu site. These markets already contribute meaningfully to our growth. Together, they represent an accessible market twice the size of the Nordics, which today account for 30 percent of our sales. We believe locally adapted sites will further accelerate our performance in these countries.
We are also seeing improvements in the mountain bike and scooter/moped verticals, which we currently serve to a limited extent. These categories represent a strong growth opportunity from 2026 and onward.
The European e-commerce market for motorcycle gear and equipment is ripe for consolidation and the benefits of scale are clear. It’s not a question of if, but when and by whom this consolidation will be driven. Pierce is uniquely positioned with a pan-European platform should such consolidation come into play.
We face a challenging and exciting period ahead, with major system launches that will unlock significant potential. I’m very pleased with where we are today and look forward to the autumn.