FY2025 Appendix 4E Financial Statements and Directors Report
| Stock | Articore Group Ltd (ATG.ASX) |
|---|---|
| Release Time | 14 Aug 2025, 8:28 a.m. |
| Price Sensitive | Yes |
Articore Group Ltd FY2025 Financial Results
- Marketplace revenue down 10.4% to $379.1 million
- Gross Profit margin improved to 45.6%, up 270 basis points
- Implemented major restructure to drive streamlined operations and cost savings
In FY2025, Articore Group implemented a major restructure to drive streamlined operations, synergies and cost reductions. The Group combined the operations of its two marketplaces, Redbubble and TeePublic, under the leadership of new Group CEO Vivek Kumar. This led to significant improvements in unit economics and paid marketing efficiency, coupled with ongoing cost discipline in the fourth quarter. Despite a 10% year-on-year decline in Marketplace Revenue to $379.1 million, the Group achieved a Gross Profit margin of 45.6%, a 270 basis points improvement on FY2024. The Group's FY2025 GPAPA (Gross Profit After Paid Acquisition) margin also improved to 26.5%, up 90 basis points. The benefit of the restructure was highlighted by the Group's 4QFY2025 results, with a Gross Profit margin of 49.7% and a GPAPA margin of 31%. The Group identified $12-$14 million in annualized Opex and other savings, and reduced Opex by 7% to $91.3 million in FY2025. The Group ended the year with $28.4 million in closing cash. In FY2026, the Group will focus on unlocking new revenue streams, stabilizing the Redbubble marketplace, implementing further cost savings, and harmonizing the marketplaces' tech stacks and operations. The Group is targeting a GPAPA margin between 27-29% and EBIT between $2-$8 million in FY2026.
The Group expects to further expand margins in FY2026 and is targeting a GPAPA margin between 27% and 29%. The Group expects to deliver EBIT between $2 million and $8 million in FY2026, alongside underlying cash flow between $5 million and $12 million.
In FY2026, the Group will pursue a number of strategic priorities, including unlocking new revenue streams, stabilizing the Redbubble marketplace, implementing further cost savings and efficiencies, and harmonizing the marketplaces' tech stacks and operations to achieve future cost savings.