Auction Technology Group (LSE:ATG) reported solid first-half results for the six months ended 31 March 2026, supported by growth across its core Arts & Antiques operations and continued improvements in cash generation.
Pro forma revenue increased 7.9% to $126.1 million during the period, while adjusted EBITDA rose 9.9% to $42.7 million. The performance was driven largely by 12.5% growth in the Arts & Antiques division, alongside higher take rates from value-added services including atgShip.
Although overall operating profit declined due to exceptional charges and increased share-based payment expenses, the company generated strong cash flow that helped reduce leverage to 1.8 times EBITDA. ATG also reported profitable growth from Chairish, with integration synergies continuing to progress in line with expectations.
Following the stronger trading performance, management upgraded full-year guidance and now expects revenue growth of between 5% and 6%, alongside an adjusted EBITDA margin in the range of 34.5% to 35.5%. The updated outlook reflects confidence in the company’s momentum despite softer conditions within Industrial & Commercial markets.
Gross merchandise value within the Arts & Antiques segment increased 5%, while Industrial & Commercial GMV declined 2% due to weakness in agricultural markets and ongoing competitive pressures. In response, the company said it is continuing to invest in improvements to both buyer and seller experience, including the replatforming of Proxibid.
Items sold across the group increased 2% during the period, while free cash flow generation and falling leverage are expected to leave year-end debt comfortably below two times EBITDA. Management believes the improving balance sheet position will provide greater flexibility to invest further in the marketplace ecosystem and potentially review future capital allocation priorities as the business seeks to accelerate growth under recently appointed chief executive Duncan Painter.
The company’s broader outlook remains tempered by weak profitability metrics, including losses, negative margins and slower free cash flow growth, despite continued revenue expansion and a stable leverage profile. Technical indicators remain relatively supportive, with the shares trading above major moving averages and MACD trends remaining positive, although valuation continues to be constrained by negative earnings and the absence of a dividend yield.
More about Auction Technology Group plc
Auction Technology Group plc operates a portfolio of online auction marketplaces focused on Arts & Antiques and Industrial & Commercial sectors. Using proprietary digital technology, the company connects millions of buyers and sellers in fragmented auction markets through structured online platforms. ATG operates internationally with offices across North America, the UK, Germany and Mexico.
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