Foxway strengthens circular platform despite mobile margin pressure in Q4 2025

For the full year, net sales totalled around € 702.5 million, broadly stable compared to 2024 but up 3.2% in constant currency. Reported EBIT was negatively affected by a non-cash goodwill impairment, underscoring the volatility of accounting results in a capital-intensive circular model. Cash flow from operating activities in the fourth quarter improved to approximately € 8.8 million, reflecting disciplined working capital management and inventory adjustments.

Mobile volumes up, margins down

Within Recommerce Mobile, Foxway generated quarterly net sales of approximately € 67.6 million euros, up 6.0% year on year and 10.9% in constant currency. Sales volumes were supported by targeted pricing initiatives aimed at reducing aging stock and addressing softer marketplace demand, particularly in Apple iPhone categories where intensified competition weighed on resale prices.

Inventory was reduced by roughly € 5.7 million compared to the third quarter, and by about € 8.9 million from the early fourth quarter peak. While these actions strengthened inventory health and cash flow, they materially impacted gross margins. Adjusted operational EBITDA declined to around € 3.0 million from approximately € 8.0 million a year earlier.

Management characterised the mobile environment as highly competitive, with pricing pressure across refurbished channels. Strategic priorities now include improved sourcing optimisation, closer vendor partnerships, enhanced multi-supplier trade in platforms for mobile network operators and retailers, and increased use of AI based grading to improve efficiency and consistency.

Enterprise demand drives C&E growth

Recommerce Computer and Enterprise delivered the strongest performance of the quarter. Net sales rose to approximately € 69.5 million, up 22.1% year on year and 31.0% in constant currency. Adjusted operational EBITDA reached around € 9.4 million, translating into a margin of 13.6%, up sharply from 4.8% a year earlier.

Growth was driven primarily by Enterprise Equipment, where global investment in AI related data centre infrastructure boosted demand for memory intensive hardware and related components. Market prices increased as demand outpaced supply, enabling Foxway to benefit from favourable procurement timing and improved resale margins. The premium refurbished computing brand Teqcycle continued to scale across Europe, supported by growing acceptance of high quality refurbished laptops and enterprise devices within corporate procurement frameworks.

During the period, Foxway also completed the acquisition of All Birotic Devices Trade & Service S.R.L., strengthening refurbishment capacity and operational footprint in Eastern Europe. The acquisition is expected to support further expansion of Teqcycle volumes and quality control capabilities.

Looking ahead, the group noted potential component shortages and announced price increases from major hardware vendors. While this could constrain availability, it may also sustain pricing strength in secondary enterprise markets, reinforcing the strategic relevance of established sourcing networks.

CWS momentum accelerates

Circular Workspace Solutions recorded quarterly net sales of approximately € 56.1 million, representing 22.3% year on year growth and 24.0% in constant currency. Adjusted operational EBITDA increased to around € 1.9 million, corresponding to a margin of 2.8%, up from 0.9% a year earlier.

Growth was primarily driven by first lifecycle contracts, with newly onboarded corporate and public sector customers beginning to generate revenue. Second lifecycle sales declined due to lower end of lease volumes, although margins remained broadly stable. Operational improvements included implementation of a new operating model and migration to an enhanced customer portal, strengthening product capabilities and lifecycle management. In the Device as a Service segment, disciplined cost control and improved contract economics contributed to profitability gains, reinforcing the role of integrated lifecycle management in driving recurring circular revenue.

CEO Patrick Höijer comments 

“The fourth quarter marked a strong end to the year for Foxway. We delivered robust revenue growth and significantly improved operational profitability in both Circular Workspace Solutions and Recommerce C&E, demonstrating the strength of our circular business model.

While the Mobile market remains highly competitive, we have taken actions to strengthen inventory and cash flow. Together with our continued investments in AI-enabled solutions and expanded refurbishment capacity in Europe, we are entering 2026 with a great foundation for long-term value creation.”

Disciplined execution shapes outlook

Across the group, management emphasised cost awareness, organisational adjustments, and strengthened data and platform capabilities. Inventory management actions in mobile, enterprise procurement timing, and improved contract structures in workspace solutions demonstrate a coordinated approach to balancing growth and cash generation.

Entering 2026, Foxway presents a diversified circular portfolio. Recommerce C&E benefits from AI driven infrastructure demand and constrained primary supply. Circular Workspace Solutions shows improving sales momentum and scalable service economics. Recommerce Mobile remains challenged by pricing pressure but has strengthened its inventory base and cash position.

The fourth quarter highlights how disciplined execution and scale in sourcing, refurbishment, and remarketing remain central to resilience in the secondary electronics ecosystem. In a market characterised by divergent dynamics across smartphones, enterprise hardware, and workspace devices, Foxway’s performance illustrates the strategic importance of integrated circular platforms in sustaining long term value creation.