Adore Beauty Group Ltd. (ABY) AI Stock Analysis

• Market Cap: AU$45.10M
• Dividend Yield: N/A
• Average Volume (3M): 45.58K
• Price to Earnings (P/E): 141.2
• Beta (1Y): 0.27
• Revenue Growth: 1.58%
• EPS Growth: -65.09%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): <0.01
• Shares Outstanding: 93,957,930
• 10 Day Avg. Volume: 31,985
• 30 Day Avg. Volume: 45,580
• PEG Ratio: -1.26
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 23.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.00
• Price Target Upside: -22.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): AU$225.40M

• Rating: 55 Neutral
• Price Target: AU$0.49 ▼(-61.86% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by very weak technical momentum and expensive valuation (P/E 150). Financials show strong revenue growth and low leverage, but thin profitability and weak/free cash flow dynamics limit the financial performance score. The latest earnings call was constructive with improving operating metrics and clear execution plans, but near-term margin and funding risks remain.

Positive Factors

Revenue growth & improving gross margin

Sustained high top-line growth and a stronger gross margin indicate the core e-commerce platform is scaling with improved supplier/pricing mix. This combination supports reinvestment in marketing, stores and owned brands while enhancing structural gross-profit capacity over the medium term.

Customer loyalty and marketing efficiency

A large, increasingly engaged loyalty base and far lower customer acquisition costs materially improve unit economics. High repeat purchase share and app adoption deepen customer lifetime value, creating a durable competitive advantage in retention and reducing reliance on expensive promotional acquisition.

Conservative leverage and scalable fulfilment investment

Low leverage preserves financial flexibility to fund strategic investments. Management’s CBA-backed Broadmeadows fulfilment centre and ERP investments (initial capex ~A$8m, payback <4 years) are structured to improve margins and fulfilment economics as volumes scale.

Negative Factors

Weak cash generation

Severely depressed free cash flow and low cash conversion reduce internal funding for stores, ERP and automation. Ongoing capex and working capital needs may force reliance on external financing, raising execution risk and pressuring long‑term liquidity if cash generation doesn't recover.

Thin net profitability

Very slim net margins leave limited buffer against promotional swings, rising lease costs, or supply shocks. Low profitability constrains the company’s ability to self-fund growth initiatives, limits returns to shareholders, and makes sustained improvement dependent on durable margin expansion.

Store roll-out funding & payback variability

Aggressive store expansion improves omnichannel LTV but requires capital and has variable payback timing. Funding needs and lease cost increases introduce execution and timing risk: new stores may depress near-term margins and cash flow until maturity, stressing capital allocation.

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 wellness products under various brands. It also offers editorial content platform that offers beauty news, reviews, tips, and expert how-to articles to educate the customers on purchasing decisions. Adore Beauty Group Limited was founded in 2000 and is based in Northcote, Australia.

How the Company Makes Money

Adore Beauty generates revenue primarily through the sale of beauty and personal care products on its online platform. Key revenue streams include direct sales of branded products, private label offerings, and subscription services. The company benefits from a growing customer base and repeat purchases, driven by its loyalty program and targeted marketing strategies. Additionally, Adore Beauty may engage in partnerships with beauty brands for exclusive launches or promotions, which further enhances its revenue potential. Seasonal sales, promotions, and limited-time offers also contribute to spikes in sales, while the company's strong online presence and effective digital marketing campaigns help attract new customers.

Adore Beauty Group Ltd. Financial Statement Overview

Summary

Strong top-line momentum (39.7% revenue growth) and improved gross margin (35.31%) support the score, and leverage is conservative (debt-to-equity 0.26). Offsetting this, profitability remains thin (net margin 0.38%) and cash generation is a key weakness (free cash flow growth down 1825.17%, low operating cash flow to net income at 0.23).

Income Statement

Adore Beauty Group Ltd. has shown a strong revenue growth rate of 39.7% in the latest period, indicating robust sales expansion. The gross profit margin improved to 35.31%, reflecting efficient cost management. However, the net profit margin remains low at 0.38%, suggesting limited profitability after expenses. The EBIT margin of 2.05% and EBITDA margin of 2.32% indicate moderate operational efficiency. Overall, the income statement reflects strong sales growth but highlights the need for improved profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.26 indicates a conservative leverage position, which is favorable for financial stability. The return on equity (ROE) is modest at 1.89%, suggesting limited returns to shareholders. The equity ratio of 48.03% shows a solid equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with low leverage but highlights the need for improved returns on equity.

Cash Flow

Adore Beauty Group Ltd. experienced a significant decline in free cash flow growth, down by 1825.17%, indicating challenges in generating cash from operations. The operating cash flow to net income ratio of 0.23 suggests limited cash generation relative to net income. The free cash flow to net income ratio of 0.33 indicates moderate cash conversion efficiency. Overall, the cash flow statement highlights challenges in cash generation and conversion, necessitating improvements in operational cash flow management.

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 0.88, above the 50-day MA of 1.07, and above the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 19.57 is Positive, neither overbought nor oversold. The STOCH value of 6.28 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHM	70 Neutral	AU$57.02M	7.61	17.58%	6.10%	-13.36%	14.09%
DSK	66 Neutral	AU$58.22M	11.88	12.71%	9.03%	8.39%	3.21%
SSG	65 Neutral	AU$203.72M	13.49	16.91%	6.98%	-0.35%	-1.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KGN	61 Neutral	$411.33M	-10.04	-40.52%	4.00%	6.24%	-23341.18%
ABY	55 Neutral	AU$45.10M	141.18	1.90%	―	1.58%	-65.09%
BBN	54 Neutral	AU$270.80M	36.04	8.94%	―	4.72%	465.60%

Adore Beauty Group Ltd. Corporate Events

Adore Beauty Director Iain Nairn Acquires First Indirect Stake in Company Shares

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 is a director and beneficiary, Nairn acquired 104,045 fully paid ordinary shares for a total consideration of $48,959.84.

The transaction, dated 27 February 2026, marks Nairn’s first disclosed holding in Adore Beauty shares, lifting his indirect interest from zero to 104,045 shares. The company confirmed there were no associated changes in contractual interests, and the trade did not occur during a closed period requiring prior written clearance, suggesting routine portfolio alignment rather than exceptional corporate activity.

The most recent analyst rating on (AU:ABY) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Director Jason Murray Increases Indirect Shareholding

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 stake via an on-market purchase that lifts his total holding to 110,140 fully paid ordinary shares, a move likely to be closely watched by investors tracking board alignment with shareholder interests.

The most recent analyst rating on (AU:ABY) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Lifts Revenue and Earnings on Strong H1 FY26 Customer Growth

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 221,700 new customers, and expanded its contactable database by 14.2% to 1.36 million, reinforcing its digital marketing reach.

Underlying EBITDA rose 14.5% to $4.1 million, delivering an EBITDA margin of 3.7%, although gross profit margin edged down 120 basis points to 35.0%. The combination of higher revenue, improved profitability and rapid customer acquisition points to a strengthening business model, even as margin pressure indicates ongoing competitive and cost dynamics in the beauty retail sector.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$0.97 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Delivers Record Earnings as Omni-Channel Push Accelerates

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 group accelerated its omni-channel strategy by opening 10 new stores, expanding its loyalty program and app usage, and boosting new customer acquisition while sharply reducing marketing costs, supporting improved revenue quality and reaffirmed profit margin guidance.

Customer growth reached its fastest pace in four years as acquisition costs fell 56%, lifting active customers to 850,400 and loyalty members to over 509,000, who contributed the majority of sales. Adore’s new retail stores, particularly in underpenetrated markets, are delivering higher conversion, an online halo effect and a larger share of less promotionally driven revenue, while continued strength in iKOU across all channels underpins the company’s mid-term profitability ambitions.

The company’s expanded store footprint to 18 locations, with six more confirmed for calendar 2026, is central to its strategy of improving brand awareness and driving profitable cross-channel growth. Positive operating cash flow and cash on hand of $8.2 million, combined with reaffirmed EBITDA margin guidance, signal operational resilience in a challenging retail environment and support ongoing investment in omni-channel capabilities and higher-margin offerings.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$0.97 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty lifts revenue and underlying earnings but profit slumps

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, while underlying EBITDA improved to $4.1 million, reflecting management’s emphasis on underlying performance metrics excluding lease, restructuring, store rollout and other non-core items.

The company did not declare a dividend for the period, opting to retain capital as it continues to refine its operations and invest in growth. Net tangible assets per share rose to 15 cents from 13 cents, suggesting a modest strengthening of the balance sheet despite the sharp decline in reported profit, which may influence investor focus toward underlying earnings and asset backing rather than statutory profitability alone.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$0.97 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Reports Lapse of 225,000 Performance Rights

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 reduces the company’s potential future share dilution and may reflect the non-achievement of certain performance hurdles tied to executive or employee incentives, though no broader operational changes were disclosed.

The announcement, filed as an Appendix 3H with the ASX under code ABY, formalises the change in the company’s issued capital structure as of 4 February 2026. Investors and stakeholders can interpret this as a routine equity-accounting update that clarifies the status of conditional rights on the register without signaling any immediate shift in Adore Beauty’s core strategy or market positioning.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Names Marcus Crowe Joint Company Secretary

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 regulatory oversight and underscoring the board’s focus on stable leadership after Carroll’s dual CFO and secretary tenure.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Sets Date for H1 FY26 Results and Investor Briefing

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 conference call and webcast, with a replay to be made available on its website, underscoring its ongoing efforts to maintain transparent communication with the market and stakeholders ahead of the formal results update.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Reports Lapse of 179,411 Performance Rights

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 company’s potential future share issuance under its performance rights arrangements, marginally tightening its prospective capital structure and signalling that specific performance or vesting hurdles tied to these rights were not achieved.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

QPE Growth, LP Ceases to be Substantial Holder in Adore Beauty

Adore Beauty Group Ltd. has announced that QPE Growth, LP has ceased to be a substantial holder in the company as of December 1, 2025. This change resulted from a block trade of 30,600,001 fully paid ordinary shares at $1.10 per share. This development may impact the company’s shareholder structure and could influence its market positioning and stakeholder relationships.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.

Adore Beauty Appoints New Chief Financial Officer

Adore Beauty Group Limited has announced the appointment of Mr. Marcus Crowe as its new Chief Financial Officer, effective January 27, 2026. Mr. Crowe brings over 20 years of experience in financial management and corporate governance, having held senior roles in various retail and logistics companies, including his most recent position as CFO at Paragon Care Limited. This strategic appointment is expected to strengthen Adore Beauty’s financial leadership and support its growth ambitions in the competitive beauty retail market.

The most recent analyst rating on (AU:ABY) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Adore Beauty Group Ltd. stock, see the AU:ABY Stock Forecast page.