Adore Beauty Group Ltd. (AU:ABY)
ASX:ABY
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Adore Beauty Group Ltd.
(Sydney:ABY)
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Rating:59Neutral
Price Target:
AU$0.35
▼(-72.87% Downside)
Action:ReiteratedDate:03/24/26
The score is held back most by weak technicals (deep downtrend and bearish momentum) and expensive valuation (very high P/E with no dividend yield provided). Financially, strong revenue growth and a conservatively levered balance sheet are positives, but thin profitability and weak cash-flow conversion remain key constraints. The latest earnings call was supportive due to improving operating execution and constructive guidance, partially offsetting near-term margin, lease-cost, inventory, and funding risks.
Positive Factors
Strong revenue growth and improving gross margin
Sustained revenue expansion with a materially higher gross margin supports structural scale economics: larger buying power, better vendor terms and margin levers. Over 2–6 months this underpins reinvestment in marketing, stores and fulfillment while improving room for operating-margin expansion.
Negative Factors
Thin profitability and low returns
Very low net and operating margins constrain retained earnings and capital available for growth. Persistently thin profitability limits resilience to cost shocks and requires sustained margin improvement to justify continued store and tech investments over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and improving gross margin
Sustained revenue expansion with a materially higher gross margin supports structural scale economics: larger buying power, better vendor terms and margin levers. Over 2–6 months this underpins reinvestment in marketing, stores and fulfillment while improving room for operating-margin expansion.
Read all positive factors
Adore Beauty Group Ltd. (ABY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$31.48M
Dividend YieldN/A
Average Volume (3M)45.58K
Price to Earnings (P/E)157.8
Beta (1Y)0.60
Revenue Growth1.58%
EPS Growth-65.09%
CountryAU
EmployeesN/A
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)<0.01
Shares Outstanding93,957,930
10 Day Avg. Volume31,985
30 Day Avg. Volume45,580
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)1.55
Price to Sales (P/S)0.31
P/FCF Ratio23.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.00Price Target Upside-22.48% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$225.40M
Adore Beauty Group Ltd. Business Overview & Revenue Model
Company Description
Adore Beauty Group Limited operates an integrated content, marketing, and e-commerce retail platform in Australia and New Zealand. The company retails beauty and personal care products, including skincare, make-up, haircare, fragrance, and wellnes...
How the Company Makes Money
Adore Beauty primarily makes money through retailing beauty products directly to consumers via its online store. Revenue is generated mainly from the sale of third-party branded products, where the company purchases inventory from brands and/or di...
Adore Beauty Group Ltd. Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial update: record underlying EBITDA, double-digit new customer growth, improved marketing efficiency, strong early traction from stores and owned brands, and investments in a national fulfillment center, ERP and AI to drive future efficiency. Near-term challenges include margin pressure from an overperforming promotional period, higher lease-related costs as the retail footprint scales, elevated inventory after peak season, and the need to secure funding for growth initiatives. Overall the positives (revenue and profit growth, customer metrics, operational investments and efficiency gains) materially outweigh the manageable execution and timing risks.Positive Updates
Record Underlying EBITDA and Statutory EBITDA
Underlying EBITDA of $4.1M on a pre-AASB16 basis, up 14.5% YoY, at a margin of 3.7% (equivalent to ~5.5% under the prior reporting methodology). Statutory EBITDA was $4.9M.
Negative Updates
Gross Margin Pressure from Promotional Overperformance
Gross margin for the half was 35% but was ~120 basis points lower in the period due to the overperformance and share of Black Friday/Cyber Monday promotions, creating short-term margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Underlying EBITDA and Statutory EBITDA
Underlying EBITDA of $4.1M on a pre-AASB16 basis, up 14.5% YoY, at a margin of 3.7% (equivalent to ~5.5% under the prior reporting methodology). Statutory EBITDA was $4.9M.
Read all positive updates
Company Guidance
Management guided FY‑26 underlying group EBITDA of 3–4% on a pre‑AASB16 basis (equivalent to 5–6% under the prior methodology), noting H1 underlying EBITDA was A$4.1m (pre‑AASB16 margin 3.7%) on A$111.9m revenue (up 8.7%); they expect owned brands to represent >6% of group revenue in FY‑26, target >1.25m active customers in FY‑27 (H1 active customers 850k, +4.7%), and plan a national retail network of 20 stores by the end of this half and 25+ stores by end FY‑27 (store payback 1–2 years). Key operational milestones are launching the new ERP in Q4 and bringing a 6,300 sqm semi‑automated Broadmeadows fulfillment centre online in Q1 FY‑27 (initial capital outlay ~A$8m, CBA‑backed, expected payback <4 years). Management reiterated focus on driving marketing efficiency and quality of earnings—CAC more than halved to A$33, marketing spend down ~30% to ~8.6% of sales, 509k Rewards members contributing ~77–78% of sales, app sales = 35% of online, improved inventory health (>60% within 60 days, stock turn +11.7%)—to support future customer revenue and profit growth.Adore Beauty Group Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.78M | 198.81M | 195.72M | 182.18M | 199.66M | 179.28M |
| Gross Profit | 52.59M | 70.21M | 65.47M | 38.51M | 44.64M | 39.56M |
| EBITDA | 5.01M | 4.62M | 5.45M | 883.00K | 5.36M | 1.67M |
| Net Income | 322.00K | 761.00K | 2.17M | -559.00K | 2.38M | 845.00K |
Balance Sheet | ||||||
| Total Assets | 109.76M | 83.81M | 67.67M | 62.41M | 59.23M | 56.39M |
| Cash, Cash Equivalents and Short-Term Investments | 8.21M | 12.67M | 32.85M | 27.76M | 29.77M | 29.00M |
| Total Debt | 48.89M | 10.45M | 1.72M | 624.00K | 1.17M | 1.35M |
| Total Liabilities | 69.04M | 43.55M | 28.02M | 26.19M | 21.91M | 22.13M |
| Stockholders Equity | 40.72M | 40.26M | 39.65M | 36.22M | 37.32M | 34.26M |
Cash Flow | ||||||
| Free Cash Flow | -2.44M | 2.60M | 4.90M | -1.42M | 1.26M | 2.12M |
| Operating Cash Flow | 8.65M | 7.94M | 8.32M | 820.00K | 3.15M | 4.12M |
| Investing Cash Flow | -13.63M | -26.89M | -3.42M | -2.24M | -1.89M | -1.99M |
| Financing Cash Flow | 1.55M | -1.24M | 195.00K | -587.00K | -494.00K | 10.31M |
Adore Beauty Group Ltd. Technical Analysis
Negative
1.29
Price Trends
0.80
Negative
1.01
Negative
0.95
Negative
Market Momentum
-0.13
Negative
19.07
Positive
15.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABY, the sentiment is Negative. The current price of 1.29 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.80, and above the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 19.07 is Positive, neither overbought nor oversold. The STOCH value of 15.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ABY.
Adore Beauty Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$169.01M | 3.96 | 16.49% | 6.98% | -0.35% | -1.96% | |
65 Neutral | AU$48.88M | 1.19 | 13.53% | 9.03% | 8.39% | 3.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$345.71M | 11.07 | -69.14% | 4.00% | 6.24% | -23341.18% | |
59 Neutral | AU$31.48M | 157.84 | 0.80% | ― | 1.58% | -65.09% | |
55 Neutral | AU$53.79M | 2.29 | 22.37% | 6.10% | -13.36% | 14.09% | |
54 Neutral | AU$215.29M | 46.89 | 6.48% | ― | 4.72% | 465.60% |
* Consumer Cyclical Sector Average
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Adore Beauty Group Ltd. Corporate Events
Adore Beauty Director Jason Murray Lifts Indirect Shareholding
Mar 17, 2026
Adore Beauty Limited has disclosed a change in director Jason Murray’s indirect shareholding in the company. Through Bignor Family Pty Ltd as trustee for the Murray Family Trust, where he is a director and beneficiary, Murray acquired 50,000...
Adore Beauty Issues 392,500 Unquoted Performance Rights Under Incentive Plan
Mar 5, 2026
Adore Beauty Group Limited has notified the market of the issue of 392,500 unquoted performance rights under its employee incentive scheme. These performance rights, which are not quoted on the ASX and are subject to transfer restrictions, were is...
Adore Beauty Director Iain Nairn Acquires First Indirect Stake in Company Shares
Feb 27, 2026
Adore Beauty Limited has disclosed a change in director Iain Nairn’s relevant interest in the company’s securities, following an on-market purchase. Through Brand Is Retail Pty Ltd as trustee for the Nairn Family Super A/C, of which he...
Adore Beauty Director Jason Murray Increases Indirect Shareholding
Feb 27, 2026
Adore Beauty Group director Jason Murray has increased his indirect shareholding in the company through Bignor Family Pty Ltd, trustee for the Murray Family Trust. The transaction underscores continued insider confidence, with Murray boosting his ...
Adore Beauty Lifts Revenue and Earnings on Strong H1 FY26 Customer Growth
Feb 23, 2026
Adore Beauty Group reported H1 FY26 revenue of $111.9 million, an 8.7% increase on the prior period, supported by strong sales through the key November and December trading season. The company grew its active customer base 4.7% to 850,400, added 2...
Adore Beauty Delivers Record Earnings as Omni-Channel Push Accelerates
Feb 23, 2026
Adore Beauty reported strong first-half FY26 results, with revenue up 8.7% to $111.9 million and record underlying EBITDA of $4.1 million, driven by operating leverage, owned brands and strict cost control despite slightly lower gross margins. The...
Adore Beauty lifts revenue and underlying earnings but profit slumps
Feb 23, 2026
Adore Beauty Group Limited reported an 8.7% rise in revenue to $111.9 million for the half-year ended 28 December 2025, with sales and gross profit both increasing year on year. However, statutory profit after tax dropped 69.9% to $0.2 million, wh...
Adore Beauty Reports Lapse of 225,000 Performance Rights
Feb 10, 2026
Adore Beauty Group Ltd. has notified the market of the cessation of 225,000 performance rights, which lapsed after the applicable vesting conditions were not met or became incapable of being satisfied. The lapse of these securities slightly reduce...
Adore Beauty Names Marcus Crowe Joint Company Secretary
Feb 4, 2026
Adore Beauty has reshuffled its corporate governance team, appointing Marcus Crowe as joint company secretary following Stephanie Carroll’s resignation, while retaining Anna Sandham as the ASX communications contact, signaling continuity in ...
Adore Beauty Sets Date for H1 FY26 Results and Investor Briefing
Jan 29, 2026
Adore Beauty Group Limited has announced it will release its financial results for the first half of FY26, covering the 26 weeks to 28 December 2025, on 24 February 2026. The company will host an investor and analyst briefing on the same day via c...
Adore Beauty Reports Lapse of 179,411 Performance Rights
Jan 15, 2026
Adore Beauty Group Limited has announced the lapse of 179,411 performance rights, which ceased on 31 December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied. The lapse reduces the companyR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.