27 November 2025

REVOLUTION BEAUTY GROUP PLC

("Revolution Beauty", the "Group" or the "Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025

Revolution Beauty Group plc (AIM: REVB), the multi-channel mass beauty brand, today announces its unaudited Half Year Results for the six months ended 31 August 2025 ("H1 26" or the "Period").

·      The Group completed a successful refinancing and equity raise, strengthening the balance sheet and restoring financial stability, subsequent to the results reported below.

·      On 22 August 2025, the Company announced the proposed return of the Founders to the business, Tom Allsworth as CEO and Adam Minto in a consultancy role, and this was a key aspect of the success of the debt and equity refinancing.

i Operating costs is defined as Distribution & Administrative costs excluding depreciation, amortisation, share based payment charges and adjusting items set out in note 7.

ii Adjusted EBITDA is an alternative performance measure used by management to gauge the underlying performance of the business, adjusting for certain non-cash, non-recurring and normalising items that are not considered to form part of underlying performance (note 7).

Financial Performance - The Past

·      Revenue declined by 31.8% to £49.4m, primarily driven by disruption carried over from prior-year strategic and operational issues.

·      Transitional challenges also weighed on net sales performance, most notably the shift from Relove to Revolution at Walmart, which contributed to short-term softness in sales and operational efficiency during the Period.

·      Gross margin was 32.2% (H1 25: 32.0%), negatively impacted by clearance sales undertaken to generate cash under the previous management team prior to the refinancing.

·      Whilst a degree of cost mitigation was taken by the previous management team to offset the declining sales performance, this was not enough to prevent a material worsening in Adjusted EBITDA performance. The final outcome of a loss of £12.5m was also impacted by space and brand changes in certain retailers (resulting in non-recurring mark-down costs) and the impact of new tariffs in the USA.

The Future

·      Following the Period end, the Founders have brought renewed energy, clear leadership and strategy to the business.

·      In September and October, following the early action taken on costs, the Group moved back to generating positive EBITDA.

·      The new management team is focused on restoring sales momentum, improving financial discipline, and rebuilding confidence.

·      Operational priorities include rebuilding our ranges, pricing and speed to market to restore what made Revolution Beauty a success in the first place. Early progress has been made to identify a number of exciting NPD (New Product Development) opportunities for launch in Spring 2026.

·      A significant headcount reduction, from 205 (excluding production staff) on 1 March to 123 currently, has been implemented, right sizing the organisation to match the current scale of operations and ensure the Group can move forward with agility.

·      Management has successfully negotiated price adjustments with US retailers, to mitigate tariffs costs, which will benefit the next financial year.

·      As part of the refinancing, £16.5m of new equity was received in September, of which £4.0m was applied to debt repayment (RCF reduced from £32.0m to £28.0m) and £2.1m to transaction costs.

·      The return of the founders to the business has been well received by our wholesale partners and there are encouraging early signs of a stabilisation of sales.

·      The recent founder-supported refinancing (£16.5m of equity raised) has transformed the Group's balance sheet. As at 25 November, the Group's cash balance was £7.0m, and net debt was £21.0m having also normalised our trading terms with suppliers. We expect a cash inflow over the remainder of H2 due to seasonal working capital unwind.

Current Trading and Outlook

During H2, the Group has seen a return to retail sales growth across key US and UK retailers. This establishes a solid platform for sustained revenue improvement.  We have immediately restored the business to EBITDA profitability from H2 FY26.

The Board recognises the challenges that remain, but is encouraged by the progress made and, most importantly, the Group now has a more appropriate cost base.

The performance achieved under the previous management for the first half was worse than expected. Largely as a function of this, full year sales and Adjusted EBITDA will not match the guidance given on 22nd August.

However, with the actions taken by the new management to right size the cost base, set realistic budgets and manage stock carefully, the business has already returned to generating EBITDA profitability. Consequently, with these actions taken and with new foundations and strategy, the company expects to have established an Adjusted EBITDA run rate by the end of FY26 in line with previous guidance of £8-10m with an Adjusted EBITDA outturn for the second half of FY26 in the region of £4m.

Tom Allsworth, Group Chief Executive Officer, 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.

I would like to thank all our team for their patience, professionalism and commitment throughout this period of transition. Their dedication has been essential in stabilising the business and positioning us for the next phase of growth, and I am pleased that we moved back to generating positive EBITDA in September and October.

We are now entering an exciting time for Revolution Beauty as we get back to doing what we do best - delivering innovation, creativity and affordable products to our customers around the world."

Iain McDonald, Chairman, said:

"Having been asked to join as Chairman during the first half, it was apparent very quickly that the key to restoring the fortunes of Revolution Beauty was to bring the founders back into the business. With the announcement of their return and their support of the placing, we were able to gain the confidence of additional investors to support a total £16.5m oversubscribed equity raise. This enabled us to agree a new facility with our banking group.

I would like to give my personal thanks to Tom and Adam, all of those who backed the equity raise and our banking partners. With their support, Revolution Beauty now has a firm and stable platform from which to restore profitability and shareholder value."

For further information please contact:

Investor Relations

Tom Allsworth, CEO

Neil Catto, CFO

Investor.Relations@revolutionbeautyplc.com

Joint Corporate Brokers

Panmure Liberum Limited: Edward Thomas / Dru Danford / John More

Tel: +44 (0) 203 100 2222

Zeus: Benjamin Robertson / Jordan Warburton

Tel: +44 (0) 161 831 1512

Media enquiries

Headland Consultancy: Matt Denham / Antonia Pollock

Tel: +44 (0)20 3805 4822

[email protected]

About Revolution Beauty

Revolution Beauty is a global mass beauty and personal care business which operates a multi brand, multi category strategy and sells its products both direct-to-consumer (DTC) via its e-commerce operations, and in physical and digital retailers through wholesale relationships.

Today, the Group has a retail footprint of c.17,500 doors across leading retail chains in the UK, USA and other international markets. Revolution Beauty has access to a wide customer base, predominantly aged between 16 and 35, through its digital partners and own DTC platform. It has established and invested to streamline its supply chain with its own manufacturing facility in the UK, and third-party warehousing facilities across the UK, USA and Australia. The Group has offices in the UK, USA, New Zealand and Germany. Revolution Beauty currently employs 239 people.

Chief Executive Officer's Review

Introduction

I joined Revolution Beauty after the close of the half-year period and, as such, these results reflect the performance of the Group under previous management. It is clear that this was a challenging six months for the business, and the financial results fall short of the standards we expect to achieve moving forward.

Performance Review

For the six months ended 31 August 2025, Group revenue declined by 31.8% to £49.4m (H1 2025: £72.4m). This decrease reflects continued weakness in sales following significant product range reductions and clearance activity undertaken in the prior year, which had a lingering impact on trading. The reduction in sales has flowed through to profitability, with the Group reporting an operating loss of £16.7m (H1 2025: £9.8m) and an adjusted EBITDA loss of £12.5m (H1 2025: £6.3m).

Gross profit for the period was £15.9m (H1 2025: £23.2m), resulting in a gross margin of approximately 32.2%, broadly stable year-on-year, but reflective of clearance sales undertaken to reduce inventory and generate cash. Administrative costs increased modestly to £15.6m (H1 2025: £14.4m), while marketing and distribution costs reduced to £17.0m (H1 2025: £18.6m) as the Group scaled back promotional activity.

Overall, the Group recorded a loss before tax of £18.4m (H1 2025: £10.9m), reflecting the combined impact of weaker sales and elevated cost pressures across the business.

Reflection on the Period

It is important to recognise that the performance during this period was shaped by decisions and initiatives implemented before my appointment. While some of these actions were taken with the intention of simplifying the business and improving operational focus, they did not translate into the expected commercial outcomes. The impact of product rationalisation, limited new product introductions, and supply chain inefficiencies contributed to weaker customer engagement and softer trading performance.

Looking Ahead

Since joining the business, my immediate priority has been to undertake a thorough review of operations, brand positioning, and cost structure. The clear focus going forward will be on restoring sales momentum, improving financial discipline, and rebuilding confidence among our customers, partners, and shareholders.

While the results for the first half are disappointing, the underlying strengths of the Group -  including its broad retail distribution, strong brand awareness, and engaged customer base -provide a solid foundation on which to rebuild. I am confident that, with renewed focus, disciplined execution, and clear accountability, the business can return to sustainable growth and profitability.

Finally, I would like to thank our dedicated teams for their resilience during a difficult period and for their continued commitment as we begin this new chapter together.

Financial Review

Revenue

Group revenue for the first half of FY26 was £49.4m, a decline of 31.8% compared with £72.4m in H1 FY25. The reduction reflects the continued execution of the previous management teams'  strategic simplification programme, including the discontinuation of brands, categories, and SKUs. The sales performance does not reflect the changes implemented following the completion of the fundraising and the commencement of the strategic reset.

Digital revenue decreased by 44.9%, falling from £12.7m to £7.0m. The decline reflects reduced innovation in the early part of the year and the discontinuation of digital-led SKUs.

Store Group revenue decreased by 29.0% to £42.4m from £59.8m. The reduction is driven by the streamlined product portfolio and lower replenishment orders from some retailers.

From a geographic perspective, UK revenue declined by 27.7%, from £21.3m to £15.4m, reflecting the SKU, brand and category rationalisation programme.

In the United States, revenue declined by 42.9% to £10.5m, impacted by some underperforming license and collection programs, as well as the transition from the Group's value brand Relove, to Makeup Revolution, which is expected to be a much more positive change in the future.

In the Rest of the World, revenue decreased by 28.1% to £23.5m, primarily due to the strategic discontinuation of brands and categories, and the non-recurrence of significant distributor clearance activity that supported H1 FY25.

Gross Margin

Gross margin for the Period was 32.2% (H1 FY25: 32.0%). Margin performance was adversely impacted by a targeted programme of low-value clearance activity undertaken to reduce legacy excess inventory and support cash generation during the Group's refinancing process. These clearance actions, while necessary, are margin-dilutive and do not form part of the Group's ongoing strategy. The Group does not expect activity of this nature or scale to recur in future periods.

Adjusted EBITDA and Operating Loss

Adjusted EBITDA for the Period was a loss of £12.5m (H1 FY25: loss of £6.3m). This performance reflects the reduced sales volumes, the margin-dilutive impact of clearance activity undertaken during the Period, and a cost base that remained above the level the business can sustainably and profitably support. The Group has been progressing actions to realign its cost structure with its current sales levels and taken steps to prevent further clearance sales activity.

Distribution, marketing and administrative costs for the period were as follows:

The Operating loss for the period was £16.7m, against a loss of £9.8m in H1 25. There were material adjusting items, as detailed in note 7, relating to restructuring and legal and professional costs in the statement of comprehensive income.

The loss before tax of £18.4m (H1 FY25: loss of £10.9m) reflects the factors impacting operating profit, together with higher finance costs incurred during the Period, predominantly relating to interest on the Group's revolving credit facility.

The reported loss after tax was £18.4m against a loss of £10.9m in H1 25.  

Cash

The Group ended the Period with a cash balance of £1.8m and gross borrowing amounted to £32.0m. This does not reflect the cash received for the equity raise completed in September or the subsequent repayment of the RCF by £4.0m.

The Group used cash of £0.6m in its operations.  This was driven by movements in working capital totalling £13.7m offsetting cash operating losses.  After taxes paid of £0.1m, capital expenditure of £0.7m, interest payments of £1.7m and payments related to lease liabilities of £0.5m, cash and cash equivalents decreased by £3.7m during the Period.

The Group has sufficient cash resources and covenant headroom to finance its current organic growth plans.

Regulator action

The Company informed shareholders on 21 July 2023 that the Financial Conduct Authority had notified Revolution Beauty that it had commenced an investigation into potential breaches of the Market Abuse Regulation (EU) 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) in relation to certain matters in the Period from July 2021 to September 2022. Revolution Beauty continues to cooperate fully with the FCA and will provide updates as necessary.  Since then, the Company has provided detailed submissions to the FCA denying any breach of MAR by the Company and setting out the relevant factual background for the FCA to consider. The investigation remains ongoing.

REVOLUTION BEAUTY GROUP PLC

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 AUGUST 2025

^{*Adjusted EBITDA is a non-GAAP measure and is defined as Operating Loss adjusted for depreciation and amortisation, impairments and reversals of impairment, profits and losses on the disposal of assets, share based charges and releases and operating adjusting items as disclosed in note 7.}

The total comprehensive loss for the period is entirely attributable to the owners of the parent company.

The above consolidated condensed statement of comprehensive income should be read in conjunction with the accompanying notes.

REVOLUTION BEAUTY GROUP PLC                         (Company Number: 11666025)

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 August 2025