Max Stock Limited Reports Fourth Quarter and Fiscal 2025 Full Year Financial Results

Fourth Quarter Revenue Increased 7.5% to ILS 352.6 million; Comparable Store Sales Increased 5.3%; Gross Margin Increased 330 Basis Points; Adjusted EBITDA Increased 28.4%; GAAP Net Income (100%) Increased 15.5%

2025 Revenue Increased 7.2% to ILS 1.43 billion; Comparable Store Sales Increased 4.4%; Gross Margin Increased 220 Basis Points; Adjusted EBITDA Increased 22.4%;

GAAP Net Income (100%) Increased 13.6%

Declares ILS 80 million, ~ ILS 0.57 per share, One-Time Dividend

CAESAREA, Israel, March 16, 2026 /PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company") today reported financial results for the fourth quarter and year ended December 31, 2025.

Fourth Quarter 2025 Summary

• Revenue increased 7.5% to ILS 352.6 million
• Comparable store sales increased 5.3% 
• Gross margin increased 330 basis points to 45.2%
• GAAP net income (100%) increased 15.5% to ILS 33.3 million  
• Adjusted Net income¹ (attributable to shareholders) increased 19.5% to ILS 30.8 million
• Adjusted EPS¹ (attributable to shareholders) increased 19.0% to ILS 0.22
• Adjusted EBITDA² increased 28.4% to ILS 59.8 million

2025 Full Year Summary

• Revenue increased 7.2% to ILS 1.43 billion
• Comparable store sales increased 4.4% 
• Gross margin increased 220 basis points to 43.9%
• GAAP net income (100%) increased 13.6% to ILS 137.6 million
• Adjusted Net income¹ (attributable to shareholders) increased 14.7% to ILS 125.0 million
• Adjusted EPS¹ (attributable to shareholders) increased 14.6% to ILS 0.90
• Adjusted EBITDA² increased 22.4% to ILS 233.5 million

Ori Max, Chief Executive Officer, stated, "Our fourth quarter performance represents a strong finish to record year for Max Stock.  Comparable sales increased 5.3%, our highest quarterly growth rate of 2025, on top of a 12.6% gain in the year ago period. At the same time, gross margins exceeded 45% for the first time in company history after increasing 330 basis point year-over-year. These fantastic results were driven by successful merchandise that are increasingly resonating with consumers, combined with the margin benefits that also reflect our recent actions to enhance the efficiency of our supply chain.

We entered 2026 with good momentum, and while the current geopolitical events in the region have caused some disruptions in our store operations, we are confident in our ability to build on our recent accomplishments and create further shareholder value."

Fourth Quarter Results (2025 compared with 2024)

Revenue increased 7.5% to ILS 352.6 million in the fourth quarter 2025 as compared with revenue of ILS 328.1 million in the fourth quarter 2024. The increase over the same period last year was driven by a 5.3% increase in comparable store sales, driven by an increase in average basket size and higher store traffic, and an increase in seasonal sales compared to the year-ago period combined with the opening of new stores.

Gross profit increased 16.0% to ILS 159.4 million in the fourth quarter 2025 from ILS 137.4 million in the fourth quarter 2024. Gross margin was 45.2% as compared to 41.9% in the last year period. The 330-basis point increase in gross margin over Q4 2024 was primarily attributable to trade and supply chain efficiency gains enabled by the Company's new logistics center, combined with the strengthening of the ILS vs. the USD and lower shipping costs. 

Selling, general and administrative expenses increased to ILS 101.0 million in the fourth quarter 2025 from ILS 90.4 million in the fourth quarter 2024. The increase in operating expenses also reflected incremental expenses in new branches. As a percent of sales, Selling, general and administrative expenses were 28.6% in the fourth quarter 2025 compared to 27.5% in the fourth quarter 2024.

Other income was ILS 1.9 million in the fourth quarter 2025, primarily attributed to the derecognition of a lease liability in Portugal.

Financing expenses, net, totaled approximately ILS 19.8 million in the fourth quarter of 2025 compared to ILS 7.5 million in the fourth quarter of 2024. The increase in net financing expenses was largely attributable to a ILS 12.8 million loss from hedging transaction revaluations for several future quarters due to strengthening of ILS vs. USD.

GAAP net income (100%) increased 15.5% to ILS 33.3 million in the fourth quarter of 2025, as compared with GAAP net income (100%) of ILS 28.8 million in the fourth quarter of 2024. GAAP net income (100%) margin was 9.4% as compared to 8.8% in the last year period. The 60-basis point increase over Q4 2024 was largely attributable to the increase in gross margin as well as lowered tax expenses related to the closure of our operations in Portugal; these were partially offset by higher SG&A costs and Financing expenses as detailed above.

Adjusted net income attributable to shareholders increased 19.5% to ILS 30.8 million in the fourth quarter of 2025, as compared with adjusted net income attributable to shareholders of ILS 25.8 million in the fourth quarter of 2024.

Adjusted EPS attributable to shareholders increased 19.0% to ILS 0.22 per share, in the fourth quarter of 2025, as compared with net income of ILS 0.19 per share, in the fourth quarter of 2024.

Adjusted EBITDA increased 28.4% to ILS 59.8 million in the fourth quarter of 2025 from ILS 46.5 million in the fourth quarter of 2024.

Full Year Results (2025 compared with 2024)

Revenue increased 7.2% to ILS 1.43 billion in fiscal 2025 as compared with revenue of ILS 1.33 billion in fiscal 2024.The year-over-year increase in revenue was driven by a 4.4% increase in comparable store sales driven by an increase in average basket size and higher store traffic, and an increase in seasonal sales compared to the year-ago period combined with the opening of new stores.

Gross profit increased 12.7% to ILS 626.9 million in fiscal 2025 from ILS 556.1 million in fiscal 2024. Gross margin increased 220 basis points to 43.9% from 41.8% for fiscal 2024 driven by an increase in the portion of direct imports versus locally sourced inventory from ~60% in 2024 to ~70% in 2025, that were made possible thanks to the new logistics center; combined with the strengthening of the ILS vs. the USD and lower shipping costs. 

Selling, general and administrative expenses increased to ILS 394.0 million in 2025 from ILS 367.3 million in 2024. The absolute increase in operating expenses was primarily related to incremental marketing, salary and the addition of right of use assets in new branches. As a percentage of sales, selling, general and administrative expenses were 27.6% in both 2025 and 2024.  

Financing expenses, net, totaled approximately ILS 53.9 million in 2025 compared to ILS 23.4 million in 2024. The increase in net financing expenses was largely attributable to a ILS 28.4 million loss from hedging transaction revaluations for several future quarters due to strengthening of ILS vs. USD.

GAAP net income (100%) increased 13.6% to ILS 137.6 million in 2025, as compared with GAAP net income (100%) of ILS 121.1 million in 2024.

Adjusted net income attributable to shareholders increased 14.7% to ILS 125.0 million in fiscal 2025, as compared with adjusted net income of ILS 109.0 million in fiscal 2024.

Adjusted EPS attributable to shareholders increased 14.6% to ILS 0.90 per share in fiscal 2025, as compared with ILS 0.78 per share in fiscal 2024.

Adjusted EBITDA (pre IFRS 16) increased 22.4% to ILS 233.5 million in fiscal 2025 as compared to ILS 190.8 million in fiscal 2024.

Balance Sheet and Cash Flow Highlights

The Company's cash and cash equivalents balance at December 31, 2025 was ILS 161.8 million, an increase of 66.6% compared with ILS 97.1 million at December 31, 2025. The Company ended the year with total debt of ILS 32.7 million, down 30.6% compared with total debt of ILS 47.1 million at the end of fiscal 2024.

Inventories at the end fiscal 2025 decreased 12.6% to ILS 210.2 million compared with ILS 240.6 million at the end fiscal 2024.

Conference Call Information

The Company will host a conference call on March 16, 2026, at 9:00 a.m. Eastern Standard Time to discuss fourth quarter and full year fiscal 2025 results (LINK). The conference call will also be accessible at https://ir.maxstock.co.il/en/event-en/.There will be a slide presentation that accompanies the call. The slides will be accessible at   https://ir.maxstock.co.il/en/presentation-en/. An archived webcast of the conference call will be available at https://ir.maxstock.co.il/en/presentation-en/.

About Max Stock

Max Stock is Israel's leading extreme value retailer, currently present in 63 locations throughout Israel. We offer a broad assortment of quality products for customers' everyday needs at affordable prices, helping customers "Dream Big, Pay Small". For more information, please visit https://ir.maxstock.co.il    

Forward-Looking Statements

It should be emphasized that this report includes forward-looking information as defined under the Securities Law, 5728-1968. Forward-looking information is uncertain information regarding the future, including forecasts, projections, estimates or other information which refer to a future event or matter, the eventuation of which is uncertain and/or not within the Company's control. The forward-looking information included in this report is based on the current information held by the Company or its current assessments, as of the publication date of this report.

Note: Totals may be sightly impacted by minor rounding differences.

1. As used throughout this release, adjusted Net Income (attributable to shareholders) defined as Net Income + Share-based payment, multiplied by the portion attributable to shareholders. Adjusted EPS (attributable to shareholders) is then divided by the number of basic shares.
2. As used throughout this release, adjusted EBITDA Pre IFRS 16 defined as Net Income + Income Tax Expenses + Net Interest Expenses + D&A + Other Expenses – the impact of IFRS 16 + Share-based payment. 

Company Contacts:
Talia Sessler,
Chief Corporate Development and IR Officer
[email protected]

SOURCE Max Stock Limited