Revolution Beauty Group reported another difficult half-year on Thursday, with results for the six months to late August showing continued declines across the business.

The multi-channel beauty brand said revenue dropped 31.8% to £49.4 million, while gross profit fell to £15.9 million. Gross margin edged up slightly to 32.2% from 32%, and operating costs decreased by nearly 4%.

However, the rest of the report painted a challenging picture: adjusted EBITDA losses widened to £12.5 million, almost double last year’s £6.3 million loss. Operating losses rose to £16.7 million from £9.8 million, and losses before tax deepened to £18.4 million. Net debt also increased by almost £5 million, now exceeding £30 million.

According to the company, the revenue decline stemmed largely from disruptions carried over from prior-year strategic and operational issues. Transitional challenges also weighed heavily on performance — including the shift from Relove to Revolution at Walmart, which created short-term sales softness and operational inefficiencies.

The company said the small increase in gross margin was affected by clearance sales initiated by the previous management team to generate cash ahead of refinancing.

That refinancing, completed after the end of the reporting period, included an equity raise aimed at strengthening the balance sheet and restoring financial stability.

A major turning point came with the announcement that founders Tom Allsworth and Adam Minto would return — Allsworth as CEO and Minto in a consultancy role. Their return was a key factor in securing the successful debt and equity refinancing.

Since the period ended, the company said the founders have brought “renewed energy, clear leadership and strategy,” with wholesale partners responding positively and early signs of sales stabilisation emerging. In September and October, after cost-cutting initiatives, the group returned to positive EBITDA.

Management is now focused on restoring momentum through tighter financial discipline, rebuilding confidence, and accelerating product development. Priorities include refining ranges, improving pricing and speeding up time-to-market. The company has already identified several new product development opportunities for spring 2026.

A significant restructuring effort has reduced headcount from 205 (excluding production staff) in March to 123, aligning staffing with the business’s current scale and allowing for a more agile operation. Management also negotiated price adjustments with US retailers to offset tariff costs, which should benefit the next financial year.

Despite these improvements, Revolution issued a profit warning, noting that performance under previous management was weaker than expected. As a result, full-year sales and adjusted EBITDA will fall short of the guidance issued in August.

Still, with restructuring complete and a clearer strategy in place, the company expects to establish an adjusted EBITDA run rate by the end of FY26 aligned with the previous guidance of £8–£10 million. It forecasts adjusted EBITDA of around £4 million for the second half of FY26.

Reflecting on the period, CEO Tom Allsworth said:
“Although I was not part of the business during the six-month reporting period, it is clear that the group faced a number of significant challenges. I recognise the impact this has had on our people, our partners and our performance. However, with the actions taken since the period end, we have laid the foundations for a more disciplined, focused and resilient business.”