Articore Group (ATG) investor relations material

Executive summary

• Achieved a significant turnaround in the first half of FY 2026, with net profit after tax of $12.7m, reversing a prior loss, and the highest first half EBIT in five years, driven by supply chain synergies, artist fee enhancements, and operational integration.

• Leadership changes, including the appointment of Vivek Kumar as Group CEO and Derek Yung as Group CFO, have strengthened the business foundation and driven operational improvements.

• Technology and marketing integration, supply chain synergies, and a new multi-tiered artist account fee structure have improved marketplace dynamics and increased account fee revenue by over 35%.

• AI now powers 100% of artist approval workflows and search, and 80% of customer chats, supporting efficiency and growth.

• Dashery platform launched, attracting over 1,200 active selling accounts and generating $1.3m in NVR with a 35.5% GPAPA margin in its first year.

Financial highlights

• Marketplace revenue for the half was $220.3m, down 4.4% year-over-year, while gross profit increased 6% to $107.5m and gross margin expanded 480 basis points to 48.8%, the highest first half on record.

• EBIT improved to $12.1m from a loss of $2.2m a year ago, and net profit after tax reached $12.7m, reversing a prior loss.

• Operating expenses declined 4.3% year-on-year to $45.5m.

• Operating EBITDA rose to $15.3m, up 84.1% year-over-year.

• Closing cash balance at end of January 2026 was $71.3m, up from $28.4m at June 2025.

Outlook and guidance

• Upgraded FY 2026 EBIT guidance to $6–10m, from previous $2–8m.

• Tightened underlying cash flow guidance to $8–12m, from prior $5–12m.

• GPAPA margin expected between 27% and 29% for FY 2026.

• Focus remains on accelerating revenue growth, margin improvement, and technology consolidation in the second half.