HelloFresh group revenue fell to approximately €1.5 billion in the second quarter of 2026, a decrease from €1.7 billion during the same period last year. The decline stems directly from a drop in order volumes, which fell to 21.8 million compared to 25.3 million in the prior year. Reporting on August 14, the meal kit provider emphasized that this downturn was anticipated as part of a broader strategic pivot regarding how it allocates resources.
The company is deliberately prioritizing profit margins over rapid customer acquisition. This shift involves reduced marketing spend and a sharper focus on retaining existing subscribers who order frequently. While core sales slipped, the company noted that newer business lines like premium meats and pet food are still expanding, indicating a mixed performance across different segments.
Financial results show adjusted earnings of €120.6 million for the quarter, down from €158.5 million in 2025. For the first half of the year, free cash flow fell to €49.4 million from €156.4 million a year earlier, representing a sharp contraction in available capital. Despite these drops, management asserted that its financial health remains stable enough to support its current direction.
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Company Prioritizes Profit Over Growth
Dominik Richter, CEO and co-founder, stated that recent product updates are gaining traction with long-term customers. He said, “Our product work is clearly landing with the customers who know us best – order rates and basket sizes are moving in the right direction across our tenured base.” He added that for new customer acquisition, the company is taking a “measured, strategic and data-driven approach” in the current consumer setting.
This strategy highlights a difficult reality for subscription services in a saturated market. Aggressive spending on discounts to attract one-time buyers often yields diminishing returns when consumer spending tightens. By relying on a loyal core, HelloFresh is essentially trading the volatility of rapid growth for the predictability of steady cash flow from established users. It is a classic defensive play, though it naturally caps potential expansion.
Richter noted that margins have stayed robust throughout the first half of the year. He claimed the Meal Kits business continues to deliver “industry-leading profitability” for the FMCG sector, while the Ready-to-Eat margin improved versus the first half of 2025. Customers are reportedly responding well to the internal “Refresh” programme, which is designed to improve the product offer and encourage existing customers to order more often.
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Diversification Efforts Show Mixed Results
Not all areas of the business are shrinking. While the traditional meal kit and ready-to-eat units saw sales decline, the company’s expansion into premium meat, seafood, and pet food categories continued to grow. This divergence suggests that while the core subscription model faces headwinds, demand for specialized add-on items persists among the current user base, providing a buffer against the steeper losses in the primary segments.
The average order value rose to €71.00 during the quarter. This increase was driven by specific changes to the product lineup, a higher rate of add-ons, and a larger selection of premium recipes. The company stated that its cost-saving programme is proceeding as planned, with most scheduled measures implemented by the end of June.
Management remains focused on efficiency moving into the second half of the year. The cost-cutting measures are largely active, and the company continues to rely on its established customer base to drive earnings rather than chasing new market share.
