Articore Group Ltd (ASX: ATG) shares are soaring 11.11% higher in Thursday lunchtime trade. At the time of writing, the shares have climbed to 40 cents a piece. The increase follows the company's half-year results for FY26, which it posted ahead of the ASX open this morning.
Today's share price uptick means the shares are now 60% higher year to date and 60% higher over the year.
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What did Articore post in its H1 FY26 results?
Here's what the e-commerce business posted for the six months ending 31st December 2025:
- Marketplace revenue was down 4.5% to $220.3 million
- Gross profit was up 6% to $107.5 million
- Gross profit after paid acquisition was up 8.9% to $60.9 million
- Earnings before interest and tax (EBIT) was $12.1 million
- Underlying cash flow was $12.3 million
What happened in H1 FY26?
Articore's marketplace revenue showed improvement over the six-month period, moderating to $220.3 million, down 4.4% from the prior corresponding period (pcp). While a decline, this is an improvement from the marketplace revenue in the first quarter of FY26, which was down 6.6%.
The business said the improvement reflects stronger paid marketing effectiveness, data-driven pricing, and more targeted promotional strategies.
Meanwhile, there was a material margin expansion, with gross profit up 6% on the pcp to $107.5 million, and gross profit after paid acquisition was 8.9% higher at $60.9 million. This was driven by supply-chain synergies and artist fee changes, which were designed to strengthen the marketplace and its dynamics.
Operating expenses were down 4.3% for the six-month period, reflecting lower employee and software costs and continued cost discipline.
Elsewhere, EBIT increased materially to $12.1 million, reaching the highest level in five years and representing a $14.3 million uplift on the pcp.
Group CEO and Managing Director Vivek Kumar said, "Our first-half performance validates our turnaround strategy. We materially improved profitability, generating a $14 million uplift in EBIT, expanded margins, and strengthened our marketplace revenue trajectory, while continuing to invest in platform capability and customer experience."
What's the outlook for Articore in FY26?
Management has raised its FY26 EBIT guidance to $6 million to $10 million, up from $2 million to $8 million previously. It also tightened its underlying cash flow guidance to the top end of its previous range, now $8 million to $12 million, from $5 million to $12 million previously.
In the second half of FY26, Articore said it will build on the momentum achieved in the first six months of the financial year to accelerate its return to marketplace revenue growth.
The business added that key areas of focus include growing revenue through both acquiring new customers and increasing its repeat customer base, further leveraging AI across the Group to improve operational efficiencies, and improving its external engineering capability to increase scalability and performance.
