Adore Beauty Group (ABY) H1 2026 earnings summary

Executive summary

• Revenue grew 8.7% year-over-year to AUD 111.9M, driven by omnichannel strategy, new store openings, and strong iKOU brand performance.

• Achieved record underlying EBITDA of AUD 4.1M (pre-AASB 16), up 14.5% year-over-year, with margin of 3.7% and disciplined cost management.

• Opened 10 new retail stores in H1 FY26, expanding the network to 18 stores, with six more confirmed for CY2026.

• New customer growth accelerated by 21.8% year-over-year, with acquisition costs down 56% to AUD 33.

• Loyalty program members contributed 78% of sales, up from 65% last year.

Financial highlights

• Gross margin was 35.0%, down 120bps year-over-year due to promotional intensity, but remains above H1 FY24.

• Statutory EBITDA reached AUD 4.9M; statutory EBIT at AUD 1.0M, up 62.5% year-over-year.

• Operating cash flow remained positive, with closing cash balance at AUD 8.2M as of 28 December 2025.

• Inventory efficiency improved, with stock turn up 11.7% year-over-year and 63% of inventory within a 60-day window.

• Marketing and advertising costs fell nearly 30%, now 8.6% of sales, with ROAS up 67% year-over-year.

Outlook and guidance

• FY26 underlying group EBITDA margin guidance of 3%-4% (pre-AASB 16), with margin expansion expected from omni-channel scaling and owned brands.

• Retail network to reach 20 stores by end of FY26 and over 25 stores by end of CY2027.

• Targeting 1,250,000 active customers by FY27, with continued focus on loyalty and app growth.

• Owned brands projected to account for over 6% of total revenue in FY26.

• No update to 2027 EBIT target guidance; further details to be provided at full year results.