Max Stock Limited Reports First Quarter 2026 Financial Results

Revenue Increased 18.3% to ILS 401.0 million; Comparable Store Sales Increased 16.9%; Gross Margin Increased 330 Basis Points; Adjusted EBITDA Increased 57.4%; GAAP Net Income (100%) Increased 56.7%

CAESAREA, Israel, May 19, 2026 /PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company") today reported financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Summary

• Revenue increased 18.3% to ILS 401.0 million
• Comparable store sales increased 16.9%
• Gross margin increased 330 basis points to 45.6%
• GAAP net income (100%) increased 56.7% to ILS 49.9 million
• Adjusted EPS¹ (attributable to shareholders) increased 55.7% to ILS 0.33
• Adjusted EBITDA² increased 57.4% to ILS 75.4 million

Ori Max, Founder and Chief Executive Officer, stated, "The work we have been doing to evolve and enhance our merchandise offerings, refine our business model, and improve the efficiency of our supply chain, has resulted in a very good start to 2026. Our operating performance up and down our P&L and across all KPI's shows a strong acceleration from the solid gains we delivered throughout 2025. Consumers are responding favorably to our recent product assortments in both larger established and smaller fast-growing categories. The newness that is being infused by our merchant teams is positively impacting sales and margins, providing us with additional tailwinds to drive sustained growth and greater shareholder value going forward."

First Quarter Results (2026 compared with 2025)

Revenue increased 18.3% to ILS 401.0 million in the first quarter 2026 as compared with revenue of ILS 339.1 million in the first quarter 2025. The increase over the same period last year was largely attributable to a 16.9% increase in comparable store sales and the opening of new branches. The increase in comparable stores sales was driven, among other factors, by the timing of the Passover holiday and an increase in the average price per item, reflecting a favorable product mix and growth in sales of items characterized by a higher average price. Comparable store sales increased 9.7% for the period January – April 2026 compared to January – April 2025 (no holiday timing impact).

Gross profit increased 27.7% to ILS 182.9 million in the first quarter 2026 from ILS 143.3 million in the first quarter 2025. Gross margin was 45.6% in the first quarter of 2026, an increase of 330 basis points compared with 42.3% in the first quarter last year. The year-over-year improvement was primarily attributable to the strengthening of the ILS vs. the USD alongside a decrease in shipping costs and improved terms of trade. Additionally, in the first quarter of 2025, the Company incurred incremental logistics costs due to the closure of the Eshel logistics center, as part of the transition to the new Distribution Center.

Selling, general and administrative expenses increased to ILS 105.8 million in the first quarter 2026 from ILS 95.6 million in the first quarter 2025, primarily driven by an increase in payroll expenses (resulting from higher Revenue this quarter and the opening of two new branches in Beer Sheva and Or Akiva), alongside higher municipal taxes and increased depreciation of right-of-use assets in the period. However, as a percent of sales, selling, general and administrative expenses improved 180 basis points to 26.4% in the first quarter 2026 from to 28.2% in the first quarter 2025, due to operating leverage on higher sales.

Financing expenses, net, totaled approximately ILS 12.2 million in the first quarter of 2026 compared to ILS 0.8 million in the first quarter of 2025. The increase in net financing expenses was largely attributable to loss of approximately ILS 4.9 million related to revaluation of future dollar hedging transactions resulting from the USD's depreciation against the NIS. This was further impacted by an increase in lease liabilities following the addition of new assets and expanded liabilities in existing assets, compared to gains from dollar hedging transactions in the first quarter of 2025.

As of March 31, 2026, the Company holds forward hedging transactions to purchase US dollars at exchange rates ranging from ILS 3.09 to ILS 3.47. As of the reporting date, these forward hedging transactions are for the purchase of approximately $53 million USD in 2026, approximately $46 million USD in 2027, and approximately $13.5 million USD in 2028.

GAAP net income (100%) increased 56.7% to ILS 49.9 million in the first quarter of 2026, as compared with GAAP net income (100%) of ILS 31.8 million in the first quarter of 2025.

Adjusted EPS¹ attributable to shareholders increased 55.7% to ILS 0.33 per share, in the first quarter of 2026, as compared with adjusted EPS attributable to shareholders of ILS 0.21 per share, in the first quarter of 2025.

Adjusted EBITDA² increased 57.4% to ILS 75.4 million in the first quarter of 2026 from ILS 47.9 million in the first quarter of 2025. Adjusted EBITDA margin increased to 18.8% in the first quarter of 2026 compared with 14.1% in the first quarter of 2025.

Balance Sheet and Cash Flow Highlights

The Company's cash and cash equivalents balance at March 31, 2026 was ILS 188.6 million compared with ILS 161.8 million at December 31, 2025 and ILS 132.1 million at March 31, 2025. The Company ended the first quarter of 2026 with total debt of ILS 29.0 million compared with total debt of ILS 32.7 million at December 31, 2025 and ILS 43.8 million at March 31, 2025.

Inventories at March 31, 2026 were ILS 215.4 million compared with ILS 210.2 million at December 31, 2025 and ILS 208.2 million at March 31, 2025.

Conference Call Information

The Company will host a conference call on May 19, 2026 at 8:00 a.m. Eastern Standard Time to discuss first quarter 2026 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 64 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]

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SOURCE Max Stock Limited