GN Store Nord reported a mixed second quarter for 2026, with adjusted EBITA rising to DKK 110 million at a 5.1% margin despite a 4% year-over-year organic revenue decline to DKK 2.17 billion. The hearing technology group’s shares fell 4.85% to $96.19 following the release, extending a 52-week decline from a high of $124.70.
The company’s enterprise division, which includes premium Bluetooth headsets, saw revenue drop 9% to DKK 1.56 billion, though gross margins improved to 57.2% from 56.1%. The gaming division, operated under the SteelSeries brand, posted a 5% organic revenue increase to DKK 613 million, with gross margins expanding to 39.2% from 34.0%. SteelSeries achieved the top global position in gaming headsets, driven by the Arctis Nova Pro Omni line.
GN’s planned divestment of its hearing business to Amplifon remains on track, with closing expected by the end of 2026. The transaction is expected to generate DKK 12.6 billion in cash proceeds plus 56 million Amplifon shares, subject to a staggered lock-up period. Upfront tax payments of DKK 1.5–2.0 billion and carve-out costs of approximately DKK 750 million are anticipated, with cost savings of DKK 200 million targeted for 2027 to offset stranded costs. Post-transaction leverage is projected to fall to 1.0x–1.5x, with a share buyback program planned after closing.
Guidance for continuing operations was adjusted, with organic revenue growth narrowed to 0–3% from a prior range of 0–6%. The adjusted EBITA margin target was raised to 9–10% excluding one-off hearing transaction costs, up from 8–9%. For the second half of 2026, GN expects organic growth of 4–9%, with an inflection point in group revenue anticipated starting in Q3 2026. A positive tariff refund impact of DKK 100–150 million is assumed for H2 2026.
GN’s free cash flow, excluding M&A, remained negative at DKK 616 million, while net interest-bearing debt stood at DKK 9.6 billion, equating to 4.4x leverage. The company’s gross margin recovered from a low of 48.9% in 2022 to 54.6% in 2025, with EBITA margins improving to 11.4% last year from a trough of 6.6% in 2023.
