Material Margin Expansion
Gross profit increased 6.0% and gross margin expanded 480 basis points to 48.8% (highest first half ever). GPAPA rose 8.9% and GPAPA margin improved 340 basis points to 27.6%.
Significant EBIT Turnaround
EBIT improved to $12.1 million vs a loss of $2.2 million in the prior corresponding period, a $14.3 million year-on-year turnaround and the highest first half EBIT in 5 years.
Upgraded FY '26 Financial Guidance
Management upgraded FY '26 EBIT guidance to $6 million–$10 million (from $2 million–$8 million) and tightened underlying cash flow guidance to $8 million–$12 million (from $5 million–$12 million).
Improved Cash Position
Closing cash balance of $47.8 million at end of January 2026, an improvement of $12.1 million year-on-year, supporting balance sheet optionality for growth investments.
Operating Expense Discipline
Operating expenses declined 4.3% year-on-year to $45.5 million and have decreased 35% since H1 FY '23, contributing materially to margin and EBIT improvement.
Stabilizing Marketplace Revenue Trend
Marketplace revenue was $220.3 million for the half with moderation in the rate of decline: Q2 down 3.2% vs Q1 down 6.6%, indicating improving revenue trajectory.
Strong Marketplace and Segment-level Unit Economics
TeePublic revenue +0.3% (H1) with gross profit +10% and gross margin +420 bps to 47.3% (GPAPA +9.3% to 22.9%). Redbubble profitably improved gross margin +580 bps to 50.5% and GPAPA +7.2% to 32.5% despite revenue pressure.
Product, Creator and AI Advantages
Platform scale: ~75 million designs, ~3 million creators, 42 third-party fulfillment sites; AI adoption: 100% artist approval workflows and search touched by AI, ~80% of customer chats handled by AI—supporting efficiency and discovery.
Early Traction from Dashery
Dashery (first-year strategic product) generated $1.3 million MPR with GPAPA margin 35.5%, >1,200 active selling accounts (majority new creators); $1.8 million invested H1 and similar expected in H2.
Artist Fee Change Driving Revenue Mix
Introduction of enhanced artist account fees increased account fee revenue by more than 35%, supporting Marketplace economics and margins.