With market conditions in Estonia improving, Longo had the first growth quarter this year. Group grew by 6.4% compared to prior, achieving EUR 13.2 million in revenue in Q3. With improved total Gross margin of 17% (up 0.9 pts), net profit for the quarter was EUR 163 thousand which is 12% higher than prior.
In first three quarters of 2025, JSC Longo Group generated total revenue of EUR 34.5 million, The positive Q3 performance minimized the year-to-date decrease in revenue to (1.6)% compared to 9M 2024. This downturn was primarily driven by a near standstill in the beginning of the year in the Estonian used car market following the introduction of the new Motor Vehicle Tax Act on 1 January 2025. The legislation introduced both an annual motor vehicle tax and a one-time registration fee, resulting in significantly higher ownership costs. Consequently, consumer demand for both new and used vehicles had temporarily weakened. Since April sales volumes of Estonian entity has been stabilizing, 70- 80% of prior period volumes in Q3.
The Group’s gross profit margin for the 9 months increased by 0.9 pts year-over-year, reaching 17.0%, resulting in total gross profit of EUR 5.9 million. This improvement was mainly attributable to higher commissions from extended warranty sales, increase in income from value‑added services and the reversal of a net realizable value (NRV) provision amounting to EUR 150 thousand.
Looking ahead, management remains firmly focused on restoring profitability through further gross margin improvements, especially by expanding value‑added services and optimizing vehicle preparation workflows, as well as maintaining lower headcount to service the needed volumes. Continued stabilization in Estonia provides a platform for modest volume growth, while disciplined cost control, reduced headcount and enhanced monetization per car sold should support further performance improvement in 2026.
About AS Longo Group
AS Longo Group is the largest used car retailer in the Baltic region, providing the most extensive selection of vehicles, it has expanded its operations also to Poland. Established in 2018, Longo employs over 130 professionals and reached a revenue of 44.4 million euros in 2024. The headquarters are in Latvia, from which AS Longo Group manages 9 subsidiaries across Latvia, Lithuania, Estonia, Poland, the Netherlands, Belgium, and Germany. Since the inception, Longo mission has been to establish a new standard of quality within the used car retail sector in the Baltic region, ensuring a transparent, reliable, and outstanding car-buying experience for customers, both online and in-person.
AS Longo Group growth has been recognized by the Financial Times and included in the FT 1000 list of Europe’s fastest-growing companies for 2024, ranking 1st among Latvian companies and 10th in the European automotive sector.