Brussels-based e-bike maker Cowboy has reported another difficult year, with declining sales, widening losses, and a costly product recall putting fresh pressure on the company’s already strained finances.

According to the firm’s 2024 annual report, turnover fell to €21.7 million, down 36% from €33.7 million in 2023. Losses deepened, with a net result of -€25.9 million, compared with -€21.7 million the year before. The company’s accumulated losses now stand at €129.8 million, while equity slipped further into negative territory at -€43.2 million.

Sales Decline and Operating Pressures

Cowboy’s sales slowdown was compounded by rising operating losses. The company posted an operating loss of €21 million, up from €19.4 million in 2023. While costs for external services fell from €18.6m to €15.5m, the drop in revenue outweighed these savings.

Personnel expenses were also trimmed: staff numbers fell from 64 to 57 full-time equivalents, reducing personnel costs from €6.3m to €5.7m.

Product Launches and Supply Chain Shift

Despite financial pressures, 2024 saw key product and technology developments:

• The Cowboy Cross was launched in March 2024, expanding the brand beyond its city-focused models.
• New Adaptive Power 2.0 and Connected Ride technologies were introduced to improve performance and rider experience.
• Cowboy switched to a new assembler in France at the end of the year, a move management says will improve delivery times, inventory efficiency, and payment terms starting in 2025.

€2.8 Million Provision for Frame Recall

A major challenge emerged in May 2025, when Cowboy initiated a recall of Cruiser ST (MR Edition) frames produced between September 2021 and June 2023 after discovering structural defects.

The company booked a €2.8 million provision in 2024 to cover recall-related costs, but management estimates the total exposure could reach €5.6 million.

Funding

Cowboy has relied heavily on fresh funding to keep operating. In 2024 it raised:

• €4 million in a new Series B round (September 2024)
• €1.3 million through crowdfunding (October 2024)

Debt has also been restructured. A major rescheduling with Triple Point Capital shifted much of Cowboy’s short-term debt into long-term obligations. As a result, long-term financial debt rose to €38.3m (up €33.8m year-on-year), while short-term debt fell to €17.4m.

Additional venture debt was secured: €1m in August 2024 and €2.6m in early 2025, but the company closed 2024 with just €0.6 million in cash.

To date, the company has raised about €137.5m from investors including Index Ventures, Exor Seeds, and Tiger Global.

Going-Concern Risks

Management has issued a stark warning: without fresh funding, Cowboy risks running out of money and potentially filing for bankruptcy.

In August 2025, the company signed a term sheet with ReBirth Group Holding SA and others to stabilize operations. The proposed deal includes a debt-to-equity swap, recapitalization, and new bond issuance. However, it remains subject to conditions.

Even if the agreement is finalized, Cowboy acknowledges that further financing will be needed in late 2025 and early 2026 to support working capital and push toward profitability.

Outlook

The combination of declining sales, heavy losses, and a costly recall leaves Cowboy in a fragile position. New products and supply chain changes offer hope for stronger margins, but survival hinges on securing new financing and restoring investor confidence.

The company’s annual report makes clear that 2025 will be a pivotal year: either Cowboy executes its refinancing plan and stabilizes, or its financial challenges could force a more dramatic outcome.

/image credits: cowboy