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Highlights
FY25 revenue declined 25.5% to £142.6m, with gross margin of 38.2% impacted by clearance of non-core inventory.
Co-founder Tom Allsworth to return as CEO, supported by Adam Minto, alongside a proposed £15m equity fundraise and extended banking facilities.
FY26 revenues expected at £110-120m with adjusted EBITDA run-rate targeted at £8-10m by year-end after additional cost savings.
Revolution Beauty Group plc (AIM:REVB), the multi-channel beauty company, has reported its unaudited results for the year ended 28 February 2025 (FY25). The year was marked by portfolio rationalisation, tighter cost control, reduced inventory, and leadership changes, alongside the launch of a re-balanced business plan aimed at restoring growth.
Financial Performance
Revenue for FY25 declined 25.5% year-on-year to £142.6 million, reflecting the planned reduction in product and brand lines. Gross margin fell to 38.2% (FY24: 46.2%), impacted by £8.4 million of losses and provision charges from clearance of non-core inventory. Adjusted EBITDA came in at £4.7 million, representing a 3.3% margin, compared with 6.6% in the prior year.
Operating costs were reduced from £75.8 million to £58.1 million, underlining continued progress on cost efficiency programmes. The company reported an adjusted loss before tax of £5.5 million, compared with a profit of £4.3 million in FY24. Net debt stood at £26.2 million, contained despite restructuring cash costs of £2.1 million.
Operational Progress
Revolution Beauty maintained service levels throughout the period and expanded retail distribution in several markets. Inventory levels were sharply reduced, with gross inventory falling by 41.1% to £33.1 million, and net inventory (after provisions) halved to £21.4 million. Social media presence also increased, with followers rising from 6.4 million to more than 7 million.
Leadership and Strategic Developments
The company confirmed that Tom Allsworth, co-founder of Revolution Beauty, will return as Chief Executive Officer in connection with a proposed £15 million equity fundraising, which is expected to launch via accelerated bookbuild. Interim CEO Colin Henry will step down following publication of the shareholder circular, although he will remain available to the business during his notice period. Adam Minto, the company’s other co-founder, will return in a consultancy role to support execution of the revised plan.
The leadership team aims to restore growth by focusing on product-led innovation, reviving profitable stock keeping units, relaunching the Relove value brand with new retail partners, and building a discount outlet channel. Additional focus will be placed on fast, trend-driven launches, digital-first products, and aligning operations to a reduced cost base.
Outlook and Current Trading
Revenue declines persisted into the first quarter of FY26, with sales down 29% year-on-year, reflecting the absence of discontinued products and clearance activity. Gross margins were further pressured by US tariff increases. However, June and July 2025 showed improving trends, with second-quarter revenues expected to be approximately 25% lower than the prior year.
Amazon sales in Europe and the US have continued to grow strongly, and several major US retail customers have returned to positive year-on-year growth. In international markets such as Turkey, sales have exceeded expectations. The company anticipates a significant improvement in performance in the second half of FY26, supported by enhanced commercial discipline and new product launches.
Based on trading to date, Revolution Beauty expects FY26 revenues in the range of £110-120 million. Adjusted EBITDA is projected to reach low single-digit millions, with a run-rate of £8-10 million by the end of FY26 after implementation of cost savings. The founders estimate annual staff cost reductions of £7.5 million by FY27 through a material reduction in headcount across global operations.
Financing
To support the revised plan, Revolution Beauty will proceed with the £15 million equity raise, which will be subject to shareholder approval. In parallel, the company has secured an extension of its revolving credit facility until July 2028, conditional on successful fundraising. The facility will be reduced to £28 million, with amended covenants aligned to the re-balanced plan.
