Adore Beauty Group Limited

For H1 FY26, Adore Beauty reported revenue of $111.9 million, up 8.7% year over year, underlying EBITDA of $4.1 million on a pre-AASB 16 basis, up 14.5%, and statutory EBITDA of $4.9 million. Gross margin was 35%, and new customers increased 21.8% versus the prior year; customer acquisition costs more than halved to $33 per customer, while marketing costs fell almost 30% and marketing as a percentage of sales declined 520 basis points to 8.6%. The company said cash from operating activities was $2.4 million and closing cash was $8.2 million as at 28 December. For FY26, management kept guidance for underlying group EBITDA at 3% to 4% on a pre-AASB 16 basis, equivalent to 5% to 6% under the previous methodology, and said the business is on track for 20 stores by the end of H1 and more than 1.25 million active customers in FY27.

Sacha Laing framed the half as evidence that Adore Beauty’s omnichannel strategy is working, citing customer revenue and profit growth despite a challenging retail backdrop. He emphasized that stores are broadening the addressable market, improving brand awareness, and helping the company shift toward higher-quality, less promotional earnings. His tone was upbeat but measured, with repeated focus on discipline around promotions, loyalty, app adoption, and long-term operational improvements.

Marcus Crowe highlighted record underlying and statutory EBITDA of $4.1 million and $4.9 million, respectively, and said profit growth came from higher revenue, margin-accretive owned brands and retail media, and disciplined cost control. He pointed to a nearly 30% reduction in marketing costs, with marketing at 8.6% of sales, and noted positive operating cash flow of $2.4 million alongside closing cash of $8.2 million. He also said capital management remains a focus and the company is exploring funding options to support growth, while increased rent and store investment affected cash flow during the period.

Analysts focused on gross margin, store performance, trading trends, and the company’s longer-term targets. Management said H2 should see a more measured margin profile because the big Black Friday/Cyber Monday promotional spike only happens in H1, and it expects loyalty, app adoption, and the store network to support better full-price sales. On stores, Laing said Western Australia is outperforming because those markets were underpenetrated online, but the company will continue rolling out nationally rather than concentrating only in the West. Management also declined to give a January/February trading update and said it has not updated 2027 guidance, noting an extended outlook will come with full-year results.