• Record EBITDA of $8.1 million, up 67.8% on prior year
• Record Gross Margin of 35.3%, up 190bpts on prior year
• Profitable new customer growth with acquisition costs decreasing $15 to $59

Adore Beauty Group Limited (ASX: ABY) has released its results for the 12 months ended 30 June 2025 (FY25), a period in which the Group diversified its business model and significantly improved profitability. The Group delivered record EBITDA of $8.1 million, up 67.8% on the prior corresponding period (PCP), with EBITDA margin of 4.1% in line with guidance. EBIT was $4.0 million, up 74.8% on PCP, with a margin of 2.0% also in line with guidance. Gross Margin reached a record 35.3%, up 190bpts on PCP. Revenue grew 1.6% to $198.8 million as the Group focused on reshaping revenue quality. Profitable new customer growth in H2 FY25 saw acquisition costs decrease $15 to $59, with new customer growth up 4.9% over the same period. The iKOU integration is progressing well, with revenue growth continuing across all channels. The Group opened four new retail stores (three Adore Beauty, one iKOU) in FY25, with a further three under construction at year end and five more under lease and opening in H1 FY26. Adore Beauty is debt-free with a cash balance of $12.7 million as at 30 June 2025 and is targeting FY26 Group EBITDA margin of 5-6% and Group EBIT margin of 2.5-3.5%.

Targeting FY26 Group EBITDA margin of 5-6% and Group EBIT margin of 2.5-3.5%.

Adore Beauty has had a strong start to FY26 with trading in the first seven weeks up 9.0% over the same period last year. Growth is being driven by improved online conversion, new retail stores, new customers, owned brands, the 'Adore Rewards' loyalty program, and more effective marketing. Owned brands are expected to account for more than 6% of Group revenue in FY26 while 12-14 new retail stores are planned to open this fiscal year, bringing the total network to 15 stores across the Adore Beauty and iKOU brands by the end of the 2025 calendar year.