Redbubble Limited

Marketplace revenue was $220.3 million for the half. Gross profit increased 6.0% and gross margin expanded 480 basis points to 48.8%, while GPAPA increased 8.9% and GPAPA margin improved to 27.6%, up 340 basis points year over year. Operating expenses declined 4.3% year over year to $45.5 million, and EBIT improved to $12.1 million from a loss of $2.2 million, a $14.3 million turnaround. On the cash side, the closing cash balance at the end of January 2026 was $47.8 million, up $12.1 million year over year. For FY26, Articore now expects EBIT of $6 million to $10 million, underlying cash flow of $8 million to $12 million, and GPAPA margin of 27% to 29%. Management did not give revenue guidance for the remainder of the year, but said it expects year-over-year EBIT improvement in the second half.

Vivek Kumar framed the half as a clear step forward in the turnaround, emphasizing margin expansion, cost discipline, and a stronger foundation for sustainable growth. He highlighted the operating flywheel of creators, customers, and fulfillment scale, and said the company is actively improving Marketplace economics through curation, repeat-customer growth, AI, and technology consolidation. His tone was confident and execution-focused, with repeated references to momentum, sustainability, and building toward revenue growth.

Derek Yung emphasized that the first-half results showed meaningful progress, with gross margin up to 48.8%, GPAPA margin at 27.6%, and EBIT at $12.1 million. He said operating expenses fell 4.3% to $45.5 million, though he noted about $4 million of year-over-year OpEx differences tied to Dashery investment, capitalization policy changes, and compensation reclassification; he also said that roughly $4 million would apply in the second half as well. He added that cash improved to $47.8 million and that the upgraded cash flow guidance of $8 million to $12 million reflects stronger profitability and tighter cost control. Yung also said tech consolidation and marketing technology deployment should support future efficiency and help sustain the updated guidance.

Analysts focused on whether OpEx had stabilized and whether further savings could come from tech stack integration. Management said the first-half OpEx included about $4 million of year-over-year comparison differences and that the normalized run rate should look better in the back half, while also confirming that tech consolidation remains an important efficiency lever. Questions also centered on customer acquisition costs and how the company plans to reaccelerate growth; management said paid marketing efficiency is improving, repeat-customer marketing is a priority, and SEO remains an industry-wide headwind. On the Marketplace curation question, management said TeePublic has long been curated and that similar content controls and incentives are being applied to Redbubble to improve search, discovery, and conversion.