• Marketplace revenue decline moderated to -3.2% in 2QFY26
• Gross profit and GPAPA margins expanded significantly
• Operating expenses reduced by 4.3%
• EBIT increased materially to $12.1 million

Articore Group Ltd (ASX: ATG) has reported a material improvement in profitability for the first half of FY26, as the company's turnaround strategy continues to progress. Key highlights include a moderation in the decline of marketplace revenue (MPR) to -3.2% in 2QFY26, from -6.6% in 1QFY26, reflecting improved paid marketing effectiveness, data-driven pricing, and more targeted promotional strategies. Gross profit increased by 6.0% and GPAPA (gross profit after paid acquisition) rose by 8.9% on 1HFY25, driven by supply-chain synergies and artist fee changes designed to strengthen marketplace dynamics. Operating expenses decreased by 4.3%, reflecting lower employee and software costs and continued cost discipline. EBIT increased materially to $12.1 million, the highest level in five years and representing a $14.3 million uplift on 1HFY25. Based on the strong first-half performance, Articore has upgraded its FY26 EBIT guidance to $6-$10 million, previously $2-$8 million, and tightened its underlying cash flow guidance to the top end of its previous range, now $8-$12 million. The company continues to expect a GPAPA margin between 27% and 29% for FY26.

Articore has upgraded its FY26 EBIT guidance to $6-$10 million, previously $2-$8 million, and tightened its underlying cash flow guidance to the top end of its previous range, now $8-$12 million.

In the second half of FY26, Articore will focus on growing revenue through acquiring new customers and increasing its repeat customer base, further leveraging AI to unlock operational efficiencies, and advancing the progression of its outsourced engineering capability to enhance scalability and performance.