Trading Update
| Stock | Articore Group Ltd (ATG.ASX) |
|---|---|
| Release Time | 15 Oct 2025, 8:35 a.m. |
| Price Sensitive | Yes |
Articore Group Ltd reports strong 1QFY26 results
- Delivered first profitable Q1 in four years with an 11% increase in gross profit after paid acquisition (GPAPA) and a $6.5 million EBIT turnaround
- Marketplace revenue decline has stabilised at 6.6%, in line with the prior quarter's 6.4%
- Pursuing multiple levers to drive profitable revenue growth, including enhancing customer experience, introducing new artist fees, and investing in Dashery
Articore Group Limited (Articore or the Group) has released its 1QFY26 unaudited financial results, which show a strong start to the financial year. The Group has delivered its first profitable Q1 in four years, with an 11% increase in gross profit after paid acquisition (GPAPA) and a $6.5 million EBIT turnaround. This demonstrates the success of the Group's focus on margins, cash flow, GPAPA, and EBIT, even against a backdrop of inflationary pressures and consumer uncertainty. Marketplace revenue decline has stabilised at 6.6%, in line with the prior quarter's 6.4%. Articore is pursuing multiple levers to drive profitable revenue growth, including enhancing customer experience, introducing new artist fees, and investing in Dashery, a new potential high-growth revenue stream. The Group's new leadership is driving a turnaround that is gaining momentum, as evidenced by back-to-back profitable quarters and positive cash flow. Articore is well-positioned to capture significant upside as demand normalises.
Articore Group has provided FY26 guidance of EBIT between $2 million and $8 million, representing at least a $12 million EBIT turnaround on FY25. The Group also expects a GPAPA margin of 27% to 29% and underlying cash flow of $5 million to $12 million in FY26.
Articore Group is pursuing multiple levers to drive profitable revenue growth, including enhancing customer experience, introducing new artist fees, and investing in Dashery, a new potential high-growth revenue stream. The Group's new leadership is driving a turnaround that is gaining momentum, and Articore is well-positioned to capture significant upside as demand normalises.