The Beauty Tech Group H1 Earnings Call Highlights

Key Points

• Strong first-half performance: Revenue rose 44.3% to £79.7 million and adjusted EBITDA increased 53% to £21.3 million, supported by a higher gross margin. The company raised full-year adjusted EBITDA guidance to at least £48.5 million while maintaining revenue guidance of at least £170 million.
• Solid financial position and potential buyback: The Beauty Tech Group ended the period with £52 million in net cash, no debt and £11.5 million in first-half cash flow. The board plans to begin a share buyback in the second half, supported by newly available distributable reserves.
• Growth depends on new products and international expansion: All regions grew, led by Asia and Europe, while CurrentBody Skin remained the dominant brand. A third-generation LED range and expanded ZIIP product pipeline are due in the second half, although management flagged execution risks during the product transition and ongoing inventory provisions.

The Beauty Tech Group LON: TBTG reported 44.3% revenue growth and a 53% increase in adjusted EBITDA for its first interim results as a listed company, while raising its adjusted EBITDA guidance for the full year.

Founder and Chief Executive Laurence Newman said the company entered the second half from a position of strength, citing a net cash position, a product-launch pipeline and the seasonal importance of the fourth quarter. The company designs, manufactures and sells beauty technology devices directly to consumers through its CurrentBody Skin, ZIIP Beauty and Tria Laser brands.

“Revenue up 44.3% and adjusted EBITDA up 53% in our first full half as a PLC,” Newman said. He added that the second half, particularly the fourth quarter, has historically been the company’s largest period for both revenue and cash generation.

Revenue, Profitability and Guidance

Chief Financial Officer and Chief Operating Officer Samuel Glynn said first-half revenue reached £79.7 million, compared with £35.9 million two years earlier. Adjusted EBITDA was £21.3 million, up from £7.5 million in the first half of 2024.

The company’s gross margin increased to 64.4%, up 3.6 percentage points year-on-year, while adjusted EBITDA margin was 26.7%. Glynn said the improvement in gross margin was the basis for increasing full-year adjusted EBITDA guidance to no less than £48.5 million. Revenue guidance was maintained at no less than £170 million.

Adjusted profit before tax rose 49% to £15.3 million. Glynn noted that statutory operating profit, up 80%, and statutory profit before tax, up 250%, were affected by prior-year IPO fees and financing costs, making adjusted figures more representative of underlying performance.

The company generated £11.5 million in cash flow during the half and ended the period with £52 million in net cash and no debt. It also has an undrawn £12.5 million facility. Glynn said the company paid a further £11.6 million of supplier deposits in July for new-product launches.

The board separately announced its intention to begin a share buyback program in the second half. Glynn said a July capital reduction added £42 million of distributable reserves to the balance sheet, supporting the proposed buyback. The company’s capital-allocation priorities remain organic investment first, inorganic opportunities second, and capital returns through buybacks or dividends thereafter.

International and Brand Performance

Every region reported growth during the first half. The U.S. and Canada, the group’s largest market since 2024, represented 41% of group revenue and grew 37% year-on-year. Europe rose 48%, Asia increased 57%, and the U.K. grew 30% despite being the company’s most mature market.

Revenue in the rest-of-world category reached £5.4 million, up 136%, with the Middle East and Australia identified as principal contributors. Direct-to-consumer sales excluding China accounted for 87% of total revenue, compared with 82% a year earlier.

• CurrentBody Skin revenue increased 45% to £71.1 million, driven by LED anti-aging and hair-health products.
• ZIIP Beauty revenue grew 26% to £7 million.
• Tria Laser revenue rose from £0.6 million to £1.6 million following the release of updated products in the first quarter of 2026.

CurrentBody Skin accounted for 89% of group revenue. Its gross margin rose to 66% from 61%, which Glynn attributed to reduced U.S. import tariffs and a higher average order volume.

ZIIP’s reported margin was 49.8% after a £1.5 million stock provision. The company chose to accelerate the launch of an improved product range rather than sell through earlier versions first. Before that provision, ZIIP’s margin had improved 15 percentage points to 71.1%, according to Glynn, primarily reflecting manufacturing-cost reductions.

Total stock provisions increased by £2.7 million in the first half, including the ZIIP provision and provisions for slower-moving and faulty inventory.

Product Launches and Investment

Newman said the company has completed development of its third-generation LED range, which is scheduled to launch in the second half. He described the range as a step up in performance, functionality and intellectual property, supported by independent clinical work.

The company also has a collaboration under way with the University of Manchester involving biopsy analysis. Newman said the work is intended to demonstrate results below the skin’s surface for at-home LED devices.

The Beauty Tech Group plans to open its own laboratory early next year to support product development and research into new applications for its technologies. It is also bringing European warehousing in-house, with the operation expected to become fully functional during the second half.

For ZIIP, management said supply-chain and cost-improvement work has been completed, with a full product pipeline due to launch in the second half. The company expects products and supply-chain infrastructure to be in place for increased marketing investment from 2027. Tria Laser is expected to require a further two years of supply-chain development before a stronger product pipeline and growth investment can follow.

Market Opportunity and Second-Half Considerations

Management estimates that 193 million premium skincare buyers and 189 million hair-loss consumers could potentially buy one of its devices. It estimated that 3.6% of the skincare group and 1% of hair-loss consumers have bought a device from any brand.

Newman said 85% of company revenue comes from consumers searching specifically for its brands by name, rather than from generic product searches. He said the company’s marketing strategy is focused on brand investment and product performance instead of price-driven sales.

Glynn cautioned that the transition from the Series 2 LED range to the new Series 3 range brings operational challenges. The company also expects retail marketing spending, which was used partly to support sell-through of older seasonal products ahead of launches, to decline as a percentage of revenue in the second half.

About The Beauty Tech Group (LON:TBTG)

The Beauty Tech Group is a UK-headquartered beauty technology company focused on developing, marketing and selling clinically backed at-home beauty devices and related skincare products. The group operates a portfolio of category-leading brands, including CurrentBody Skin, ZIIP Beauty and Tria Laser, and offers products built around core aesthetic technologies used in professional settings, including LED light therapy, radio frequency, microcurrent and laser treatments.

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