Revolution Beauty blames profit warning on previous management

For its interim results for the six months ending August 31, 2025, the beauty brand reported a 31.5% slump in gross profits to £15.9m and a 31.8% drop in revenues to £49.4m and adjusted EBITDA losses during the period deepened to £12.5m.

In a statement, the Revolution Beauty board said that “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 August 22”.

On August 22, 2025, founders Tom Allsworth and Adam Minto returned to the business, in the chief executive and consultancy roles respectively, which Revolution Beauty said marks a turning point from what it bluntly calls ‘The Past’ in its results and looking towards the future.

“The founders have brought renewed energy, clear leadership and strategy to the business,” the retailer noted. “In September and October, following the early action taken on costs, the group moved back to generating positive EBITDA”.

Revolution Beauty said that “the new management is focused on restoring sales momentum, improving financial discipline, and rebuilding confidence” by focusing on what made the business “a success in the first place”.

The brand has also completed a “significant headcount reduction” and has implemented a process of “right-sizing the organisation to match the current scale of operations and ensure the group can move forward with agility”.

Under new management, the retailer recently completed a successful refinancing and equity raise, which Revolution Beauty said strengthened its balance sheet and restored financial stability.

In terms of current trading, Revolution Beauty said it had returned to sales growth in the UK and US and that the business has returned to profitability in the second half of the financial year.

For the end of the financial year, it expects to have established an adjusted EBITDA run rate in line with the previous £8m-£10m guidance.

Group chief executive 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.

“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.”