Revolution Beauty Group (REVB) H2 2025 earnings summary

Executive summary

• Revenue declined 25% year-over-year to £142.6m, reflecting a strategic SKU reduction and challenging trading conditions.

• Loss before tax was £16.8m, compared to a profit of £11.4m in the prior year, driven by lower sales and margin pressure.

• Adjusted EBITDA fell to £4.7m from £12.6m, impacted by non-recurring inventory write-offs and cost base realignment.

• Leadership changes included the appointment of a new CEO and Chairman, with a focus on restoring profitability and stability.

• A £16.5m equity raise and extension of the revolving credit facility were completed post-year-end, subject to shareholder approval.

Financial highlights

• Revenue: £142.6m, down from £191.3m year-over-year.

• Gross margin: 38.2% (down from 46.2%); adjusted gross margin 44.0% excluding one-off inventory provisions.

• Loss before tax: £16.8m (prior year: £11.4m profit).

• Adjusted EBITDA: £4.7m (prior year: £12.6m).

• Net assets: £0.2m, net debt: £26.2m.

• No dividend declared.

Outlook and guidance

• Trading remains challenging in FY26, with Q1 sales down year-on-year due to discontinued products and margin pressure from clearance activity and US tariffs.

• Management is focused on cost alignment, operational efficiency, and selective investment in digital, supply chain, and international growth.

• Amazon sales in Europe and the US are growing, and key US retail partners have returned to year-on-year growth.

• The business expects to operate within amended facility covenants, but material uncertainties remain regarding covenant compliance and shareholder approval of the equity raise.