Foxway’s Q2 revenue soars by 20% however margin continues to be under pressure

Record volume mobile devices

In Q2 2024, Foxway's focus on circular tech services within the European market delivered robust organic growth despite challenging conditions. The Recommerce Mobile segment saw significant underlying growth of 40% year-over-year, driven by an all-time high in mobile volumes (+45%) through both consumer marketplaces and B2B channels.

Margin under pressure

However, margin pressure persisted for Apple iPhones, primarily due to the brand's recent launch of a new model at a lower price point, which negatively impacted the resale value of refurbished devices. To address this, Foxway actively reduced total inventory by 40% during Q2 and launched a cost program in mid-June, aiming to return to historical margin levels.

The Recommerce Computers & Enterprise (C&E) business area delivered a 10% growth in Q2, slightly below expectations due to improved supply chain conditions for OEMs, which resulted in lower overstock volumes. Meanwhile, the Circular Workplace Solutions (CWS) business area achieved 13% growth, driven by increased demand for as-a-service offerings and solid client retention.

Looking ahead the company’s near-term focus is on restoring margin levels, supported by a strong customer pipeline, a streamlined cost base, and ongoing investments in operational scalability, customer support, and sourcing.

New team

Foxway remains committed to long-term investments in areas that create value, such as product development, customer-facing platforms, and more important for the European secondary market, M&A opportunities. The recent strengthening of the executive management team, including the appointments of Anders Wallin as CFO and Eleonor Öhlander as CHRO, positions Foxway well for its next growth chapter.