The day it emerged that CEO Fran Millar had left the business, premium cycling kit brand Rapha announced provisional financial results, which show the company still has a long way to go to regain financial stability.
Despite asserting that the structures Millar put in place during her two-year tenure are working, the company’s figures show a further reduction in turnover, down from £96m in the 2024 financial year to £89m in 2025, its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) are also down to a deficit of £5.6m, £3m less than last year.
While the Customer Lifetime Value, the worth of a customer to the business, and a key indicator of customer retention, is up to £634, the company is reporting an operating loss of £21.1m, £4m more than last year and worse than 2023. This marks a ninth consecutive year of operating losses for Rapha.
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"These numbers reflect deliberate decisions to invest in our brand, product quality, cycling communities and customer experiences, while reducing our reliance on discount and promotional related activities - choices that will strengthen the business over time," read a statement released on Wednesday, September 23.
According to the press release, Millar put in place a new vision and strategy, before suggesting to the company’s board that she step down "to allow new leadership to guide the next phase."
"While there are encouraging green shoots, we believe significant changes are essential to establish a stronger, more sustainable path forward," Rapha’s press release continued, before suggesting job losses may be on the horizon. "This involves a proposed organisational restructure and a formal consultation process with affected team members will now take place. We believe these proposed changes are necessary but recognise the personal impact on affected colleagues, and we do not take these decisions lightly."
Despite the numbers, the company insists early signs are that the strategy put in place is bearing fruit, with "encouraging revenue growth in a number of our key territories and in our like-for-like Clubhouses, with fewer days on promotion and increased customer acquisition vs last year."
In 2017 the company was sold by founder Simon Mottram to RCZ Investments, a private equity firm headed by the heirs to the Walmart empire, Steuart and Tom Walton.
"My brother and I have been majority owners of Rapha for nine years," Steuart Walton is quoted as saying. "We love the brand, the product, and what Rapha stands for, and we are deeply grateful to the people who have made the company so special.
"Our belief in Rapha has not changed. We remain committed to the power of cycling to make the world a better place and to Rapha’s unique role in advancing that idea."
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