FY25 results showed good progress towards its longer-term 5%+ adjusted PBT margin target (FY25 4.1%) – helped by an improved focus on unit economics, attractive repeat customer numbers (c.60% of orders), and new customer acquisition levels (650k+ in FY25). Mobile phones remains a drag on performance (£19.6m goodwill write-off). A broad FY26 adjusted PBT guidance range of £40m to £50m reflects the degree of consumer uncertainty short term, musicMagpie losses, and the material opex headwind from NLW and NI increases in April. A strategic decision on mobile phones is likely in FY26, given ongoing losses. AO is also trialling customer service outsourcing/offshoring in South Africa which, if successful in maintaining its high customer service reputation built over the years (Trustpilot 4.9*), should deliver future cost savings. Forecast changes mainly reflect incorporation of musicMagpie acquisition. We cut FY26E PBT by 2%/increase FY27E PBT by 1%. More positive medium-term dynamics with a material market share opportunity to go after, particularly in non-MDA categories. AO is well placed to benefit from any improvement in the macro backdrop from falling interest rates and improved consumer sentiment. There is also potentially a more positive electricals category tailwind coming, driven by the natural replacement cycle (typically 5-6 years) and more product innovation coming. Ongoing balance sheet degearing raises the question of potential future dividends or capital returns in the near future. Year-end IFRS 16 net debt was £35.9m (IAS net cash £23m). Management seems happy with the ecosystem it has built and is downplaying the prospect of future acquisitions. The focus is now on driving operational leverage through its existing platform.