Longo Group AS highlights that the profitability measures rolled out in the second half of 2025 continued to translate into tangible operational progress and improved business results in the first quarter of 2026.

In Q1 2026, Longo Group generated total revenue of €9.67 million, an increase of 5.4% compared to Q1 2025 (€9.17 million). Revenue dynamics have stabilised as Estonian volumes adjust to the new motor vehicle taxation framework introduced on 1 January 2025, which had temporarily weakened consumer demand during most of 2025. With the market having adjusted in Estonia, the Group has been able to focus on monetisation per car sold and operational efficiency.

The Group's gross profit margin for Q1 2026 increased by 4.4 percentage points year-on-year, reaching 18.9% (Q1 2025: 14.5%) and produced total gross profit of €1.82 million (Q1 2025: €1.33 million). The improvement was driven mainly by focused sourcing of high demand vehicles and higher income from value-added services- in line with the profitability platform embedded during the second half of 2025.

EBITDA rose to €0.65 million (Q1 2025: €0.07 million), reflecting higher gross profitability and continued tight administrative cost management. Administrative expenses decreased to €1.11 million (Q1 2025: €1.18 million), confirming the sustainability of the cost discipline put in place in 2025. The Group recorded a profit before tax of €0.04 million (Q1 2025: loss of €(0.53) million), marking the Group's return to positive territory and delivering on the break-even commitment communicated for Q1 2026.

Looking ahead, the Group remains on track with its stated priorities: sustainable, profitability-led growth with the Baltics as the primary focus. Key priorities for the remainder of 2026 include further gross-margin improvement through disciplined sourcing, focused high-demand assortment selection, continued enhancement of vehicle-preparation workflows and stronger monetisation via value-added services.

The Group will maintain tight control over administrative costs and concentrate on profitable growth opportunities. In Poland, the approach will remain selective and profitability-led, prioritising returns over rapid expansion. As the Estonian market continues to adjust to the new taxation environment, management expects further stabilisation of volumes to support the Group's path of profitable growth.

Longo Group AS audited report for period ended 31 March 2026 is attached to the announcement and is also published on NASDAQ Riga and Longo’s web page https://www.longo.group/investorresources

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 110 professionals and reached a revenue of 44 million euros in 2025. 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.