Auction Technology Group (ATG) H1 2026 earnings summary

Executive summary

• Delivered strong revenue and profit growth in H1 2026, leading to an upgrade in full-year guidance.

• Arts & Antiques (A&A) segment showed significant momentum, with Chairish integration ahead of plan, delivering synergies and profitability.

• Industrial & Commercial (I&C) managed cyclical headwinds and competitive pressures.

• Platform improvements, take rate expansion, and value-added services (VAS) drove growth.

• Strong cash generation and significant reduction in leverage, with net debt/EBITDA down to 1.8x.

Financial highlights

• Revenue rose to $126.1m, up 41.7% reported and 7.9% pro forma year-over-year, driven by A&A and Chairish.

• Adjusted EBITDA reached $42.7m, up 10.9% reported and 9.9% pro forma, with a margin of 33.9%.

• Adjusted diluted EPS increased 4.7% to 19.9c.

• Adjusted free cash flow surged 86.6% to $26.5m, with 85% cash conversion.

• Finance costs up 40.4% due to increased net debt post-Chairish acquisition.

Outlook and guidance

• Full-year FY26 guidance upgraded: revenue growth of 5%-6% (USD 248–250 million) and adjusted EBITDA margin of 34.5%-35.5%.

• Exceptionals guidance for the year at GBP 7 million, reflecting one-off cost efficiency actions.

• Board to consider shareholder returns as leverage approaches 1.5x.

• Depreciation & amortisation expected at ~$13m, interest cost at ~$12m, and capex at ~$13m.

• Strong free cash flow and leverage well below 2x anticipated by year-end.