Revolution Beauty Group (REVB) H2 2026 earnings summary

Executive summary

• Achieved a significant turnaround, returning to profitability in H2 FY26 with a GBP 4.3 million EBITDA profit, reversing a GBP 12.5 million loss in H1 FY26.

• Implemented strategic restructuring, reducing headcount from 212 to 128, and focused on product innovation, digital expansion (notably via TikTok Shop), and operational efficiency.

• Achieved annualised cost savings of GBP 9.4 million and improved gross margin by 9.2 percentage points in H2.

• Leveraged strategic partnerships, including a license with Debenhams, and continued cost-saving initiatives.

• Set a clear growth plan based on increasing productivity in existing stores, opening new retail doors, and expanding into new categories and brands.

Financial highlights

• FY26 group revenue was GBP 102.1 million, down 28% year-over-year, mainly due to prior management's SKU reduction and strategic refocus.

• Adjusted EBITDA for the year was a loss of GBP 8.2 million, with a GBP 12.5 million loss in H1 offset by a GBP 4.3 million profit in H2.

• Gross margin improved from 32.2% in H1 to 41.4% in H2, driven by reduced clearance activity and better stock management.

• Net debt reduced from GBP 30.2 million at H1 to GBP 24.7 million at year-end, following a GBP 16.5 million equity raise.

• Equity raised totaled GBP 16.5 million, with net proceeds of GBP 15.5 million.

Outlook and guidance

• Management expects double-digit underlying sales growth in the coming years, with a focus on profitable expansion and cash generation.

• FY27 priorities include profitable growth, building winning brands, purposeful expansion, and efficient execution.

• Q1 FY27 was profitable at EBITDA level, with sales flat year-over-year and e-commerce up 26%.

• Gross margin is expected to increase by a couple of percentage points over H2 levels as the business grows.

• No material CapEx or cash investment is expected for the Debenhams license in the current year.