Adore Beauty Group Ltd. (ABY) AI Stock Analysis

• Market Cap: AU$97.25M
• Dividend Yield: N/A
• Average Volume (3M): 45.58K
• Price to Earnings (P/E): 127.8
• Beta (1Y): 0.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$1.00 ▼(-22.48% Downside)

Adore Beauty Group Ltd. benefits from strong technical momentum and a stable financial foundation with low leverage. However, the high P/E ratio suggests potential overvaluation, and challenges in profitability and cash flow generation need to be addressed for long-term success.

Positive Factors

Revenue Growth

Sustained 39.7% revenue growth demonstrates accelerating customer adoption and market penetration for the online beauty platform. Over 2-6 months this scale supports stronger supplier terms, improved unit economics, and continued reinvestment in marketing and fulfilment to entrench market position.

Improved Gross Margin

A 35.31% gross margin improvement signals better purchasing, pricing or mix management, which is durable versus short-term sales spikes. Higher gross margin preserves cash to absorb operating costs, fund customer acquisition, and supports path to lasting operating leverage as revenue scales.

Low Leverage / Strong Equity Base

Conservative leverage and a ~48% equity ratio provide financial flexibility and lower interest burden. This durable balance sheet positioning reduces solvency risk, enables opportunistic investment in inventory, technology or M&A, and cushions the business during cyclical retail slowdowns.

Negative Factors

Severe Free Cash Flow Decline

An extreme FCF decline (-1825%) shows the business is struggling to convert earnings into cash, likely from working-capital pressure or one-off items. Weak cash conversion constrains durable investments, increases reliance on external funding, and raises execution risk over the medium term.

Very Thin Profitability Margins

Near-break-even net margin and low EBITDA margin indicate limited ability to absorb cost shocks or fund growth internally. Persistently thin margins suggest structural cost or pricing challenges that hinder durable earnings improvement unless operational efficiency or higher-margin mix improves.

Weak Returns and EPS Contraction

Low ROE and a ~65% decline in EPS point to weak shareholder returns and deteriorating profitability per share. Over months this signals either margin compression, dilution, or episodic losses that undermine long-term capital efficiency and investor confidence in sustainable earnings power.

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

Adore Beauty Group Ltd. demonstrates strong revenue growth and a solid equity position, indicating a stable financial foundation. However, challenges in profitability and cash flow generation require strategic focus to enhance operational efficiency and cash conversion. The balance sheet's low leverage is a positive aspect, providing financial flexibility.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	198.81M	198.81M	195.72M	182.18M	199.66M	179.28M
Gross Profit	70.21M	70.21M	65.47M	38.51M	44.64M	39.56M
EBITDA	4.62M	4.62M	5.45M	883.00K	5.36M	1.67M
Net Income	761.00K	761.00K	2.17M	-559.00K	2.38M	845.00K
Balance Sheet
Total Assets	83.81M	83.81M	67.67M	62.41M	59.23M	56.39M
Cash, Cash Equivalents and Short-Term Investments	12.67M	12.67M	32.85M	27.76M	29.77M	29.00M
Total Debt	10.45M	10.45M	1.72M	624.00K	1.17M	1.35M
Total Liabilities	43.55M	43.55M	28.02M	26.19M	21.91M	22.13M
Stockholders Equity	40.26M	40.26M	39.65M	36.22M	37.32M	34.26M
Cash Flow
Free Cash Flow	2.60M	2.60M	4.90M	-1.42M	1.26M	2.12M
Operating Cash Flow	7.94M	7.94M	8.32M	820.00K	3.15M	4.12M
Investing Cash Flow	-26.89M	-26.89M	-3.42M	-2.24M	-1.89M	-1.99M
Financing Cash Flow	-1.24M	-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: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.16, above the 50-day MA of 1.20, and above the 200-day MA of 0.97, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.22 is Neutral, 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	9.56	17.58%	6.10%	-13.36%	14.09%
ABY	66 Neutral	AU$97.25M	127.78	1.90%	―	1.58%	-65.09%
DSK	66 Neutral	AU$53.86M	12.31	12.71%	9.03%	8.39%	3.21%
SSG	65 Neutral	AU$195.86M	13.00	16.91%	6.98%	-0.35%	-1.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBN	56 Neutral	AU$281.63M	29.42	8.94%	―	4.72%	465.60%
KGN	47 Neutral	AU$343.47M	-8.81	-40.52%	4.00%	6.24%	-23341.18%

Adore Beauty Group Ltd. Corporate Events

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.

Adore Beauty Director Increases Stake with Share Acquisition

Adore Beauty Group Ltd. announced a change in the director’s interest, with Jason Murray acquiring 60,140 fully paid ordinary shares through an on-market trade. This acquisition reflects a significant personal investment by the director, potentially indicating confidence in the company’s future performance and aligning his interests with those of shareholders.

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 Group Announces Successful AGM Results

Adore Beauty Group Limited announced that all resolutions at its 2025 Annual General Meeting were passed with the requisite majority via a poll. This outcome reflects strong shareholder support and may positively influence the company’s strategic direction and governance, reinforcing its position in the beauty e-commerce industry.

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 Group Holds 2025 Annual General Meeting

Adore Beauty Group Limited announced the presentation and addresses for its 2025 Annual General Meeting. The announcement, authorized by the Board of Directors, highlights the company’s ongoing commitment to its stakeholders and its strategic positioning in the beauty e-commerce industry. This meeting is a significant event for the company as it continues to evolve and expand its market presence.

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.