Adore Beauty logs H1 earnings, revenue growth

Adore Beauty (ASX:ABY) has released its financial results for the first half of the 2026 financial year, reporting record earnings and growth across several key metrics.

For the six-month period ended Dec. 31, 2025, the company achieved a record underlying EBITDA of $4.1 million on a pre-AASB 16 basis, representing a 14.5% increase compared to the prior corresponding period.

Revenue rose by 8.7% to $111.9 million, a result the company attributed to retail store expansions, a successful Black Friday promotional period, and growth in its ikou brand.

Adore Beauty also reported record marketing efficiency, with customer acquisition costs decreasing by 56% while new customer growth increased by 21.8% over the prior year.

However, gross margin saw a slight decline of 120 basis points to 32.0%, impacted by the heavy promotional environment during the Black Friday and Cyber Monday sales.

The company's omni-channel expansion remains a primary focus, with 10 new retail stores opened since July across the group's brands.

Management confirmed that a further six stores are slated to open during the remainder of the 2026 calendar year.

The group maintained a positive operating cash flow and reported a closing cash balance of $8.2 million.

Looking ahead, Adore Beauty has reaffirmed its FY26 guidance, targeting a group EBITDA margin of 4% to 5% on a pre-AASB 16 basis.

CEO Sacha Laing stated that the results reflect the success of the company’s customer-led strategy and its disciplined approach to cost management despite margin pressures.