WSA Reports Modest Growth in Q2 2025/26 as Margins Improve and Consumer Channels Outperform

WS Audiology (WSA)—the Denmark-headquartered parent company of Widex, Signia, and Rexton—reported modest organic revenue growth and improved profitability in its second quarter of fiscal year 2025/26, while noting that wholesale sales were pressured by launch timing and stricter management of its customer base.

For the quarter ended March 31, 2026, WSA generated revenue of €628 million (about US$737 million), representing 1% organic growth compared with the same period last year. Reported revenue declined 6%, mainly due to currency headwinds, particularly the weaker US dollar and Japanese yen against the euro.

WSA is maintaining its full-year organic revenue outlook of 0-4%, supported by its current portfolio and upcoming product launches.

The results reflect a mixed quarter for what HearingTracker estimates is the world’s third-largest hearing aid manufacturer. WSA’s consumer-facing business—covering Online (which includes Hear.com), Managed Care (including TruHearing), and Retail (including HearUSA)—delivered 9% organic growth. The company said Online continued its strong trajectory across regions, Managed Care returned to strong growth due to more covered lives and improved benefits, and Retail posted solid growth.

By contrast, WSA’s Wholesale business declined 6% organically in Q2. The company attributed the decrease to tighter customer-base management intended to support profitability, as well as to the timing of WSA’s product launches relative to competitors. WSA said the effect of the stricter customer-base management is expected to be concluded in Q3.

WSA said global hearing aid unit growth was approximately 3% during the period, based on industry data and its own estimates, but noted that macroeconomic and political uncertainty continues to keep market growth below historical levels.

Geographically, the Americas remained WSA’s strongest region, with 4% organic growth, driven by Online and Managed Care growth in the US, along with solid Retail performance. EMEA declined 3% organically, with Wholesale weakness partly offset by solid Retail and strong Online results. APAC was flat organically, as continued softness in China was partly balanced by stronger performance in Japan.

Profitability was a stronger point in the quarter. EBITDA before special items was €117 million (≈US$137 million), unchanged from the prior year, but the EBITDA margin before special items improved to 18.6%, up 1.1 percentage points. WSA attributed the margin expansion to higher gross margin, reduced operating expenses, operational efficiencies, and structural cost reductions made in FY 2024/25.

The company also reported a quarterly profit of €16 million (US$19 million), compared with a €10 million loss in the same period last year. Net financial expenses declined to €52 million from €70 million, helped by lower net interest expense following debt repricing and repayment of PIK notes in the prior financial year. Operating cash flow also improved sharply, rising to €115 million from €55 million a year earlier.

When looking at the first half of FY 2025/26, WSA reported revenue of €1.257 billion (≈US$1.48 billion), with flat organic growth. Reported revenue declined 6%—again largely because of currency effects. EBITDA before special items was €228 million, down only slightly from €231 million a year earlier, while the EBITDA margin improved to 18.1%, up 0.8 percentage points.

Outlook and Possible IPO in the Future

WSA’s improved profitability may renew attention on the company’s longer-term ownership path. As one of only two remaining privately held global manufacturers (the other being Starkey), WSA has long been viewed as a likely IPO candidate, with debt reduction considered a key step toward making a public listing more feasible. According to MedWatch, EQT has already engaged Danske Bank, Goldman Sachs, and Morgan Stanley to prepare for a possible Copenhagen IPO, while WSA’s latest first-half results show net financial expenses falling sharply and net interest-bearing debt declining over the past year.

WSA has not commented on timing, with CFO Marianne Wiinholt telling MedWatch that any IPO decision rests with the company’s owners. However, the company’s lower interest costs, improved cash flow, and return to profitability suggest WSA is continuing to strengthen the financial profile that potential public-market investors would examine closely.

WSA also used the earnings release to highlight its innovation pipeline. On May 12, it launched the Signia Active Mini IX, described as the world’s smallest ready-to-wear ITE hearing aid with connectivity and the full IX platform. The device is positioned as a discreet, rechargeable, same-day fitting option that does not require custom molds.

The company also pointed to its recently announced Sound Preference initiative, which builds on research suggesting that up to 40% of listeners show a strong, consistent preference for one sound-processing philosophy over another. The company said its two major technology platforms—Widex and Signia—position it well to apply this approach in personalized hearing care. More products are reportedly in WSA’s pipeline for expected launches this year.

HearingTracker recently broke the news that WSA and Sony would no longer be partnering on Sony OTC hearing aids. WSA told HT that it still plans to compete in the OTC hearing aid market.

WSA maintained its full-year outlook, expecting 0-4% organic revenue growth for FY 2025/26, supported by its current portfolio and upcoming product launches. The company also expects EBITDA margin before special items to improve by about 1 percentage point versus FY 2024/25, supported by prior cost reductions, efficiency gains, and revenue growth.