Koton (KOTON) 1Q26 Financial Results

Koton reported TL8.3bn in revenue, TL1.5bn in EBITDA and a net loss of TL265mn in 1Q26. Revenue came in line with both our estimate and market expectations, while EBITDA delivered an upside surprise, coming in at nearly twice our TL887mn estimate and the market median estimate of TL901mn. The main drivers of this positive deviation were the stronger-than-expected improvement in gross margin and lower-than-expected operating expenses. Net loss, on the other hand, was broadly in line with our TL234mn estimate. Despite the positive operational performance, high financial expenses continue to weigh on net income. We believe this pressure on the financing side is temporary and should ease as the interest rate environment normalizes. Therefore, we maintain our medium-to-long-term investment thesis, keeping our 12-month target price at TL27.00 and our BUY recommendation unchanged.