Terminal X Reports 12th Consecutive Quarter of Double-Digit Growth and 90% Net Profit Surge

Terminal X continued its expansion strategy through acquisitions, which significantly boosted its profitability and sales in the second quarter of 2026. The fashion brand Inker, consolidated into the group in June 2025, and the jewelry brand Ronit Yam, consolidated in October 2025, contributed to increased sales and improved gross margins. The Terminal X website also saw a rise in transactions and active customers, though the average basket value slightly declined to 427 shekels from 429 shekels year-over-year. In July 2026, after the reporting period, Terminal X acquired a 51% stake in the modest fashion brand Sade Bar for 3.5 million shekels from founders Ariela Avitan and Adi Cohen.

The independent brands showed a gross margin of 69%, substantially higher than Terminal X's 44%, highlighting their positive impact on the group's profitability. Terminal X achieved its 12th consecutive quarter of double-digit growth and operating profit increase, declaring a dividend distribution of 20 million shekels to shareholders. CEO Nir Horovitz emphasized consistent cost structure improvements and operational leverage, stating, "We see 12 quarters of improvement, with net profit growth."

Horovitz also revealed ongoing negotiations to acquire additional brands in vitamins, home, and lifestyle sectors, where Terminal X currently has minimal presence but sees future growth potential. He noted that each independent brand could reach sales of 50 million shekels with double-digit profits, leveraging Terminal X's strong online, logistics, and shipping infrastructure.

In May 2026, Terminal X decided to close its Azrieli Sarona mall store early, paying a 1.5 million shekel penalty for breaking the lease due to economic non-viability. The group also recorded 550,000 shekels in other income as compensation for damages from the Iron Swords war, alongside a 1.2 million shekel government grant, of which 650,000 shekels were recognized in the 2024 report.

Terminal X's Q2 2026 revenues reached 161 million shekels, up 20.5% from the previous year, driven by the acquired brands and a 10% increase in website transactions totaling about 500,000. Active customers rose from 710,000 to 785,000. The independent brands segment saw a 77% sales increase to 37 million shekels and a 79% gross profit rise to 26 million shekels, with operating profit jumping to 6.5 million shekels from 1.5 million shekels year-over-year. Overall, Terminal X reported a 59% increase in operating profit to 18.6 million shekels and a 90% surge in net profit to 13.7 million shekels.