Topic: We revisit TPG’s investment case with this update and shed light on recent news flow and Q1 results. In detail:

Q1 results show rising momentum. GMV increased by 87% yoy to € 356m, driven by 28% more partners yoy (15.4k), a 9% yoy higher AOV and 60% yoy more orders. Consequently, sales grew accordingly by 49% yoy to € 161m, whereas adj. EBITDA grew disproportionately by 87% yoy to € 16m (9.9% margin, up 2pp yoy). Mind you, the effects described above are a mix of organic and inorganic developments, which are not disclosed separately, but should stem from profitable acquisitions of the past, in our view.

New strategy to enter Opticians & Hearing market. With the announced acquisitions of 50.1% of

Beste Aussichten GmbH, 50.1% of Karrasch & Nolte GmbH

(closing expected in July ‘25) as well as the simultaneous disposal of shares in Mister Spex, TPG took another second serve with its entry into the Optics & Hearing market. The two acquired companies employ c. 200 FTEs and have 30 sites all over Germany. The purchase price is in the double-digit € m range and consists of a cash component and shares. With this, TPG forms a new segment “Optics & Hearing” with an expected pro-forma revenue of € 30m and adj. EBITDA margin between 26-33% in FY’25e, whereas in FY’26e € 55-60m sales with an adj. EBITDA margin of 25% (incl. further acquisitions) are targeted, highlighting the strong growth and profitability profile in this new vertical, in our view.

First step into construction via We Connect Work acquisition. Only yesterday, TPG announced the acquisition of We Connect Work, a B2B platform connecting Real estate companies, property developers & architects with electrical, plumbing, heating, drywall construction, and welding technology providers. This adds another vertical to TPG next to Furniture, machinery, dental technology, car platforms and luxury fashion.

Scaling luxury business. With the announced closing of Joli Closet (second-hand luxury C2C platform) and the integration of fashionette’s, Winkelstraat’s and Chronext’s product offering into Joli Closet, TPG thus creates a single go-to place for secondhand and vintage luxury products with the aim to scale sales as a whole.

Own fulfilment solution initiated. With the establishement of

TPG Fulfillment GmbH and the acquisition of a 12k m² logistic center in May 2025, TPG aims to centralize and implement the logistics for various holdings and partners. This should effectively reduce fulfilment costs with notable effects visible from Q4‘25 onwards.

In sum, TPG continues to deliver on it’s M&A strategy, which shows in solid financial figures. Trading at only 4.5x FY’25e EBITDA (3.8x FY’26e EBITDA), the shares seem mispriced, in our view. Therefore, we recommend to BUY based on a DCF-based PT of € 18.00.

- analyst change -