Auction Technology Group (LSE:ATG), the operator of online auction and list price marketplaces, reported pro forma constant currency revenue growth of 7.8% for the three months to 30 June, with growth at actual exchange rates of 7.7%.
The Arts & Antiques division delivered good growth, driven by continued progress at LiveAuctioneers and a strong performance from Chairish, while the decline in Industrial & Commercial revenue held steady at the same rate reported at the half-year.
Adjusted net debt to adjusted EBITDA fell to 1.7x at the end of June, down from 2.2x at the end of FY25, reflecting continued free cash flow generation.
"This is another quarter of good progress, with growth in Arts & Antiques and continued healthy cash generation allowing us to raise our full year revenue guidance", said chief executive Duncan Painter.
ATG now expects FY26 pro forma constant currency revenue growth of 5.5-6.5%, up slightly from the 5.0-6.0% range guided at the half-year results in May, driven by value-added services and commission revenue from LiveAuctioneers and Chairish.
Adjusted EBITDA margin guidance remains unchanged at 34.5-35.5%, though the company continues to expect the outcome toward the bottom of that range given the growth of lower-margin value-added services and a full year of Chairish revenue.
Leverage is expected to reach around 1.5x by the end of FY26, with Chairish integration on track to deliver $8m of run-rate operational synergies by FY27.
News Intelligence what this means for the company
ATG raised FY26 revenue guidance to 5.5–6.5% after Q3 pro forma constant currency revenue grew 7.8%, driven by strength in Arts & Antiques (LiveAuctioneers and Chairish) offsetting a steady Industrial & Commercial decline. The upgrade, paired with adjusted net debt falling to 1.7x from 2.2x year-on-year, signals the company is trading ahead of its May guidance and converting that momentum into deleveraging.
The guidance lift and leverage improvement reinforce ATG's ability to grow while reducing financial risk, though the company expects EBITDA margin to land toward the bottom of its 34.5–35.5% range due to lower-margin value-added services and a full year of Chairish revenue, capping upside on profitability expansion.
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