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

Terminal X continues to expand successfully through acquisitions, reporting its 12th consecutive quarter of double-digit growth and a 90% increase in net profit to 13.7 million shekels in Q2 2026. The company’s strategy of acquiring smaller brands has boosted both revenue and profitability, with fashion brand Inker and jewelry brand Ronit Yam contributing significantly since their consolidation in June 2025 and October 2024, respectively. Terminal X also acquired a 51% stake in modest fashion brand Sade Bar in July 2026 for 3.5 million shekels.

The group’s gross profit margin improved to 50.1%, driven by the higher margins of the independent brands segment, which reached 69.3%, compared to Terminal X’s 44.2%. Total revenues rose 20.5% to 161 million shekels, supported by a 10% increase in transactions on the Terminal X website, which recorded about 500,000 transactions and 785,000 active customers, up from 710,000 the previous year. Despite a slight decline in average basket size to 427 shekels, the company’s operational leverage and cost structure improvements enhanced profitability.

CEO Nir Horovitz highlighted ongoing negotiations to acquire additional brands in vitamins, home, and lifestyle sectors, where Terminal X currently has minimal presence but sees potential for significant growth. The company aims to leverage its strong online infrastructure, logistics, and shipping to scale these new categories organically and through acquisitions.

In May 2026, Terminal X decided to close its store in Azrieli Sarona Mall early, paying a 1.5 million shekel penalty for breaking the lease, while also receiving 550,000 shekels in compensation related to damages from the Iron Swords conflict. The company also recognized a government grant totaling 1.2 million shekels, with 650,000 shekels accounted for in the 2024 report.

Overall, the independent brands segment saw a 77% sales increase to 37 million shekels and a 79% rise in gross profit to 26 million shekels, with operating profit jumping to 6.5 million shekels from 1.5 million the previous year. Terminal X’s operating profit grew 59% to 18.6 million shekels, with an operating margin of 11.6%. The company declared a dividend distribution of 20 million shekels to shareholders following the strong quarterly results.