Revolution Beauty Group (AIM:REVB), the AIM-listed beauty brand, reported a return to profitability in the second half of the year ended 28 February, with adjusted EBITDA of £4.3m against a £12.5m EBITDA loss in the first half.
Full-year revenue fell to £102.1m from £142.6m in the prior year, driven by SKU reductions and a narrower strategic focus set by previous management.
The group's pre-tax loss widened to £30.6m from £16.8m, while full-year adjusted EBITDA was a loss of £8.2m against a £4.7m profit a year earlier.
Gross margin improved from 32.2% in the first half to 41.4% in the second, as new management under chief executive Tom Allsworth, who returned in August 2025 alongside chief financial officer Adam Minto, tightened stock management and forecasting.
Annualised cost reductions exceeded £9m across operating, marketing and administrative expenses.
Year-end cash stood at £5.9m, up from £1.8m at the end of August, with net debt reduced to £24.7m from £30.2m over the same period.
"The second half of FY26 was a pivotal period for the business and we are pleased to report a return to profitability, generating an EBITDA of £4.3m or 7.8% of sales," said Allsworth.
Trading in the first quarter of the new financial year has come in ahead of management expectations, continuing into the second quarter, with sales broadly flat year-on-year against previous double-digit declines.
The group achieved positive EBITDA in the seasonally quieter first quarter, compared with a £4.2m loss a year earlier, with direct-to-consumer sales up 26% on the back of growth in TikTok Shop.
Management has renegotiated price adjustments with US retailers to offset tariff costs, expected to benefit the current financial year.
News Intelligence what this means for the company
Revolution Beauty swung to H2 adjusted EBITDA profit of £4.3m—ahead of guidance—after new management tightened operations, cut costs by over £9m annualised, and improved gross margin to 41.4%. Full-year revenue collapsed 28% to £102.1m and full-year adjusted EBITDA remained a £8.2m loss, but the trajectory matters: Q1 FY27 turned positive EBITDA (vs. a £4.2m loss a year prior), DTC sales grew 26% on TikTok Shop strength, and management has locked in US retailer price adjustments to offset tariffs.
The company has arrested a severe revenue and profitability decline through SKU discipline and cost control, moving from full-year EBITDA loss to H2 profit and Q1 positive EBITDA. Cash improved to £5.9m and net debt fell to £24.7m, but the £102.1m revenue base is 28% below prior year—recovery depends on whether the flat YoY sales trend and DTC momentum in early FY27 can sustain and reverse the structural revenue loss.
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