Adore Beauty Group (ABY) H2 2025 earnings summary

Executive summary

• Achieved record profitability in FY 2025, with EBITDA up 67.8% to $8.1 million and EBIT up 74.8% to $4 million, both in line with guidance.

• Revenue grew 1.6% to $198.8 million, driven by improved revenue quality, cost efficiencies, and growth in owned brands.

• Transformation into an omnichannel platform with five new stores opened and a strong pipeline for further expansion.

• Enhanced customer experience through AI personalization, faster site speed, and a new loyalty program with over 440,000 active members.

• Opened 4 new retail stores and launched a loyalty program, boosting customer engagement and acquisition.

Financial highlights

• Gross margin hit a record 35.3%, up 1.9 percentage points year-over-year, supported by owned brands and retail media.

• EBITDA margin increased by 1.6 percentage points to 4.1%; EBIT margin up 0.8 percentage points to 2.0%.

• Operating EBITDA rose 46.4% to $7.9 million at a 4% margin.

• Marketing as a percentage of sales reduced by 1.3 percentage points to 12%.

• Cash balance at June 30, 2025, was $12.7 million, up 8.7% from December 2024, with no debt.

Outlook and guidance

• FY 2026 targets: group EBITDA margin of 5%-6%, EBIT margin of 2.5%-3.5%.

• Trading for the first seven weeks of FY 2026 up 9% year-over-year.

• 12-14 new stores planned for FY 2026, aiming for a national footprint of 25+ stores by 2027.

• FY 2027 targets: revenue over $260 million, EBITDA margin above 8%, EBIT margin above 5%, and more than 1.25 million active customers.