• Record Underlying EBITDA of $4.1 million, up 14.5% on prior year
• Revenue up 8.7% to $111.9 million, driven by retail stores and strong iKOU growth
• Marketing efficiency improved with acquisition costs down 56.0% to $33 per customer

Adore Beauty Group Limited (ASX: ABY) has released its results for the 26-week period ending 28 December 2025 (H1 FY26), delivering strong customer, revenue and profit growth. The company reported record Underlying EBITDA of $4.1 million on a pre-AASB 16 basis, up 14.5% on the prior corresponding period (PCP), reflecting operating leverage, owned brands, retail media and disciplined cost management. Revenue increased by 8.7% over PCP to $111.9 million, driven by retail stores, a successful Black Friday period, and strong growth in the iKOU brand. Adore Beauty also achieved record marketing efficiency, with acquisition costs decreasing 56.0% over PCP to $33 per customer, and new customer growth up 21.8% over the same period. The company's loyalty program and mobile app continue to drive improvements in revenue quality, offsetting a reduction in promotional cadence. Adore Beauty's omni-channel strategy, including the opening of 10 new retail stores during the period, has been a key driver of customer acquisition and brand awareness. The company plans to add a further six stores in the remainder of CY2026. The iKOU brand also performed well, with strong revenue growth across all channels. Adore Beauty remains focused on improving revenue quality and continues to reduce its promotional intensity, which led to a 120 basis point decrease in gross margin to 35.0% due to the overperformance of the Black Friday/Cyber promotional period.

Adore Beauty is on track to achieve its FY26 Group underlying EBITDA margin guidance of 3-4% on a pre-AASB 16 basis. Margin expansion will be driven by the scaling benefit of omni-channel, improved quality of earnings, new customers, growing retail footprint, and high-margin owned brands, which are expected to account for more than 6% of revenue in FY26.

Adore Beauty's retail network will increase by two stores in H2 FY26, bringing the Group's national footprint to 20 stores across the Adore Beauty and iKOU brands by the end of the financial year. The Group remains on track to deliver a national retail store footprint of more than 25 stores across both brands by the end of CY2027.