Articore Group (ATG) H2 2026 earnings summary

Executive summary

• Achieved first full-year profit since listing (excluding FY21 pandemic spike), with EBIT of AUD 10.3 million, a AUD 20.1 million turnaround year-on-year, and record gross profit margin of 49.6%.

• Margin expansion and cost discipline drove profitability, with OpEx reduced by 34% since FY 2023 and 6.9% year-on-year, while investing in growth businesses Dashery and Frankly Wearing.

• Strengthened balance sheet with AUD 40.5 million cash at June 30, 2026, up from AUD 28.4 million a year prior, and underlying cash flow of AUD 10.1 million.

• The business model is asset-light, capital-light, and benefits from negative working capital, supporting scalable and defensible growth.

• Two established marketplaces (Redbubble, TeePublic) and two high-growth businesses (Dashery, Frankly Wearing) underpin the group’s strategy.

Financial highlights

• FY26 revenue: AUD 408.5 million, down 6.9% year-on-year; marketplace revenue declined 6.5% to AUD 354.5 million.

• Gross profit increased 1.7% to AUD 175.9 million; gross profit margin hit a record 49.6%, up 400 bps year-on-year.

• Operating EBITDA rose 76.9% year-on-year to AUD 16.4 million.

• Operating expenses declined 6.9% to AUD 85 million; underlying cash flow improved to AUD 10.1 million.

• Return on equity improved to +21.8% from -22.8% in FY25.

Outlook and guidance

• FY27 guidance: GPAPA margin of 27%-30%, OpEx of AUD 79-85 million, operating EBITDA of AUD 17-23 million.

• Focus remains on profitable NPR growth, cost discipline, and scaling new business investments.

• Continued investment in high-growth businesses and technology consolidation, leveraging India-based engineering and AI-driven customer experience.