Revolution Beauty Group plc (LSE:REVB) reported adjusted EBITDA of £2.0 million for the six months ended 31 August 2026, compared with a loss of £12.5 million in the corresponding period last year, reflecting improvements in gross margins and reductions in operating costs.
The beauty products group reported revenue of £48.4 million, down 2.0% from £49.4 million, although underlying revenue increased 8.3% after adjusting for discontinued brands, clearance sales and non-recurring licence income in the comparative period.
Gross margin increased by 11.4 percentage points to 43.6%, while operating costs declined 32.7% to £19.1 million. The company also reported 22% growth in online sales and confirmed that trading during the opening months of the second half remained in line with expectations.
Management expects full-year FY2027 performance to be at the upper end of current market forecasts.
First-Half Revenue Reaches £48.4 Million as Underlying Sales Increase
Revolution Beauty reported revenue of £48.4 million for the first half of FY2027, compared with £49.4 million in the corresponding period of FY2026.
The reported decline of 2.0% reflected changes to the company’s product portfolio and the absence of certain sales recorded in the previous year.
The comparative period included clearance sales, revenue from discontinued brands and non-recurring licence income.
Excluding these items, underlying revenue increased 8.3%, from an adjusted comparative figure of £44.7 million.
The company said its revised product ranges and inventory management approach contributed to the change in sales composition.
Revolution Beauty operates across approximately 17,500 retail locations internationally, alongside its own digital channels and third-party online platforms.
Gross Margin Improves by 11.4 Percentage Points
Gross profit increased 32.7% to £21.1 million during the first half, compared with £15.9 million a year earlier.
Gross margin rose to 43.6% from 32.2%, representing an improvement of 11.4 percentage points.
The company attributed the increase to the absence of prior-year clearance activity, lower gross-to-net charges and changes to product range and inventory management.
The improvement in gross margin occurred despite the 2.0% reduction in reported revenue.
Management said its revised approach to product selection, pricing and inventory control is intended to support profitability and reduce reliance on clearance sales.
The company also reported a reduction in gross inventory to £30.8 million, compared with £34.1 million at the end of the corresponding period last year.
Operating Costs Fall 32.7% to £19.1 Million
Revolution Beauty reduced operating costs to £19.1 million in H1 FY2027, compared with £28.4 million a year earlier.
The £9.3 million reduction represents a decline of 32.7%.
Cost savings were achieved across distribution, marketing and administrative activities.
The company said more than £9 million of annualised cost savings implemented during FY2026 are now reflected in its operating cost base.
The reported operating cost measure excludes depreciation, amortisation, specified adjusting items and share-based payment charges.
Revolution Beauty also reported that cash adjusting items declined to £0.3 million from £1.7 million, an 85% reduction, as restructuring expenditure and legacy legal costs decreased.
Adjusted EBITDA Improves by £14.5 Million
Revolution Beauty recorded adjusted EBITDA of £2.0 million for the six-month period, compared with a loss of £12.5 million in H1 FY2026.
The improvement of £14.5 million reflects the combined effect of higher gross profit and reduced operating costs.
Adjusted EBITDA represented 4.1% of revenue, compared with a negative margin of 25.3% in the prior-year period.
The company’s statutory operating loss narrowed to £0.9 million from £16.7 million, an improvement of £15.8 million.
Loss before tax declined to £1.9 million from £18.4 million, representing a £16.5 million improvement.
The group therefore returned to positive adjusted EBITDA during the first half, although it continued to report a statutory loss before tax.
Management also confirmed that Revolution Beauty had generated positive adjusted EBITDA in each of the 13 consecutive months to 30 September 2026.
UK Revenue Returns to Growth as International Sales Decline
Revolution Beauty reported a 1.7% increase in UK revenue to £15.6 million during the first half.
The company attributed the increase to a recovery in its UK digital channels, which more than offset the effect of discontinuing the Relove and iHeart brands.
Revenue in the United States declined 2.8% to £10.2 million, compared with £10.5 million in the prior-year period.
Rest of World revenue decreased 4.0% to £22.6 million from £23.5 million.
The company said the international revenue declines reflected the absence of non-recurring licence sales and revenue from discontinued brands.
Revolution Beauty also reported securing new customers through its international direct and distributor channels.
Online Sales Increase 22%
Online sales increased 22% during H1 FY2027, supported by growth through TikTok Shop.
The company’s online sales measure includes revenue generated through revolutionbeauty.com, TikTok Shop and Amazon.
Management uses this measure to assess consumer engagement with the brand and as an indicator of potential demand through physical retail channels.
The increase in digital sales formed part of the group’s strategy to focus on its core Revolution Beauty brand and refresh its product offering.
The company reported that changes to its product ranges and new product development pipeline were beginning to be reflected in retailer order books.
Revolution Beauty continues to distribute its products through approximately 17,500 retail locations across the UK, United States and other international markets.
Net Debt Declines to £25.7 Million
Revolution Beauty reported net debt of £25.7 million at 31 August 2026, compared with £30.2 million a year earlier.
The £4.5 million year-on-year reduction occurred alongside an increase in cash and cash equivalents to £4.3 million from £1.8 million.
Net debt was slightly higher than the £24.7 million reported at the previous financial year-end, reflecting the seasonal increase in working capital ahead of the second half.
Gross inventory declined by £3.3 million year on year to £30.8 million.
The company said the reduction reflected changes in stock management and a more focused product portfolio.
Management continues to identify inventory control and cash generation as priorities within its financial strategy.
Debenhams Licensing Partnership Targets Christmas Product Launches
Revolution Beauty continued implementing changes to its product strategy during the first half under its founder-led management team.
Chief executive Tom Allsworth and Adam Minto have focused on the group’s core beauty offering, including product development, pricing and speed to market.
In June 2026, Revolution Beauty announced a licensing partnership with Debenhams Group covering fragrance and gifting products.
The agreement includes products under the PrettyLittleThing, Karen Millen and boohooMAN brands.
The first collections are scheduled to launch ahead of Christmas 2026.
The company expects the partnership to contribute to its product offering during the second half, alongside refreshed ranges across its existing beauty categories.
No financial forecasts specific to the licensing agreement were disclosed.
Second-Half Trading Supports Full-Year Expectations
Revolution Beauty reported that trading during September and October remained in line with the board’s expectations.
The company said its second half typically accounts for a larger proportion of annual profitability, reflecting the seasonal contribution from autumn, winter and Christmas trading.
Management reported encouraging sales and order books for the period, supported by refreshed product ranges, online growth and planned launches under the Debenhams Group licensing partnership.
The board expects full-year FY2027 performance to be at the upper end of the current range of market expectations.
These expectations were revised upwards following the company’s trading update on 17 September 2026.
The announcement did not specify the numerical range of current market forecasts.
The company also reiterated its intention to pursue further improvements in revenue, profitability and cash generation beyond FY2027.
Chief Executive Comments on First-Half Performance
Tom Allsworth, chief executive officer of Revolution Beauty, commented on the group’s financial performance and operational changes:
“I am delighted with the progress we have made in the first half. When Adam and I came back to the business, we set out to get Revolution doing what it does best – bold, on-trend, affordable beauty, brought to market quickly – on a platform that is profitable and properly controlled. These results show we are doing exactly that: gross margin is up more than 11 percentage points, our cost base is a third lower, and we have turned a £12.5m EBITDA loss into a £2.0m profit.
Our customers are responding. Online sales are up 22%, our retail partners are backing our new ranges, and we are opening up exciting new opportunities such as our licensing partnership with Debenhams Group.
I would like to thank the whole Revolution team, whose energy and commitment have made this possible. We enter the all-important second half with real momentum, and I am very excited about the future of Revolution Beauty.”
Chairman Comments on Business Strategy
Iain McDonald, chairman of Revolution Beauty, also commented on the company’s financial and operational progress:
“This is a very encouraging set of results which shows that the turnaround of Revolution Beauty is well under way. The Board’s first priority was to put the business on a sound and disciplined footing and that has been achieved, with the Group now EBITDA positive in every month for over a year.
Our focus now turns to growth. Revolution is a much-loved brand with a strong retail footprint and an engaged, digitally native customer base, and the Board believes it has the potential to be a very large business. I would like to thank Tom, Adam and the whole team, together with our shareholders, banking partners and retail customers, for their continued support.”
The company continues to focus on its revised product portfolio, operating cost structure and digital distribution channels as it progresses through FY2027.
More About Revolution Beauty Group
Revolution Beauty Group plc (LSE:REVB) is a multi-channel beauty products company operating across the UK, United States and international markets.
Its products are distributed through approximately 17,500 retail locations, alongside direct-to-consumer and third-party digital platforms.
The company operates a UK manufacturing facility and has expanded its product offering through licensing arrangements, including its partnership with Debenhams Group.
For the six months ended 31 August 2026, Revolution Beauty reported revenue of £48.4 million, adjusted EBITDA of £2.0 million and gross margin of 43.6%.
Its statutory loss before tax narrowed to £1.9 million, while net debt declined to £25.7 million from £30.2 million a year earlier.
Management expects full-year FY2027 performance to be at the upper end of current market expectations following the improvements reported during the first half.
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