HelloFresh SE shares tumbled over 7% on Thursday after the meal-kit company reported a sharper-than-expected 9% year-on-year revenue decline in Q4 and warned of a soft start to 2026. The drop reflects investor focus on customer growth and revenue momentum over cost control, despite a modest profit beat. Trading was hit by extreme weather across Europe and the US, impacting demand. The company's ready-to-eat business underperformed expectations in the quarter.

HelloFresh also announced plans to exit its operations in Italy and Spain, aiming to reduce complexity and support margins, though this narrows its geographic footprint. Adjusted EBITDA rose 14% year-on-year to €423 million, exceeding market expectations, but this was overshadowed by the revenue concerns. The cautious comments about early 2026 trends, particularly in the US where demand for ready-to-eat meals weakened, were the primary driver of the sell-off. Analysts at Morgan Stanley highlighted the first quarter as crucial for stabilizing the customer base and revenue trends.