• Marketplace revenue (MPR) of $230.4 million, down 12% on prior year
• Gross profit margin of 43.8%, up 220 basis points
• Identified $12 million to $14 million of annualised opex savings

Articore Group Limited (Articore or the Group) today releases its financial results for the six months ended 31 December 2024 (1HFY25). Marketplace revenue (MPR) was $230.4 million, down 12% on the prior corresponding period (pcp), due to a decline in Redbubble's MPR, which was partially offset by TeePublic's performance. Gross profit was $100.9 million, down 7% on the pcp, due to the decline in MPR. However, the Group's gross profit margin increased 220 basis points to 43.8%, primarily achieved by unlocking further synergies through combining the operations of the two marketplaces and a continual focus on driving sustainable improvements to unit economics. Gross profit after paid acquisition (GPAPA) was $55.4 million, down 14% on the pcp, and GPAPA margin was 24.0%, 60 basis points lower than the pcp, as the Group focused on profitably scaling paid marketing. Operating expenditure was $47.2 million, down 7% on the pcp, reflecting the Group's continued disciplined approach. Operating EBITDA was $8.2 million, down $5.3 million on pcp. Looking forward, the Group has identified $12 million to $14 million of annualised opex savings, following a major restructure, with a partial benefit to be realised in 2HFY25 and the full benefit expected in FY26. The Group continues to expect its FY25 GPAPA margin to be between 25% and 27%, its FY25 opex range to be between $89 million and $92 million, and to deliver positive underlying cash flow in FY25, subject to any incremental investment in Dashery, a new platform to enable creators to establish their own store fronts.

The Group continues to expect its FY25 GPAPA margin to be between 25% and 27%, its FY25 opex range to be between $89 million and $92 million, and to deliver positive underlying cash flow in FY25, subject to any incremental investment in Dashery in the second half of FY25.

The Group expects its competitive environment to remain challenging and will remain focused on optimising unit economics, maintaining cost discipline and maximising synergies across the Group. The reduction in the cost base, alongside the sustainable improvement to gross profit, provides a foundation for the Group to increase profits and returns to shareholders in FY26.