This article first appeared on GuruFocus .
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Gross Revenue:$505.7 million, stable year-on-year.
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Sales Revenue:$382.8 million, down 3% year-on-year; excluding the US, grew 13% to $225 million.
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Adjusted EBITDA:$8.7 million, with a half-on-half improvement of $20.5 million.
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Average Order Value (AOV):Increased 17% year-on-year to $961.
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Cash Position:$61.4 million with 0 financial debt.
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Active Customers:613,000 during the period.
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Repeat Customers:Account for 69% of gross revenues, up from 67%.
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Delivered Margin:14% of sales, impacted by higher US duties.
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Paid Acquisition Expenses:4.2% of sales revenue.
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Emerging Markets Revenue:Increased by 21% year-on-year, representing 45% of gross revenue.
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US Revenue:Represents approximately 41% of gross revenues.
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Customer Acquisition Costs:Declined to $83.
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Delivered Margin per Active Customer:$179, improved from $148 in H2 FY '25.
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Release Date: February 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cettire Ltd ( ASX:CTT ) achieved a 13% year-on-year sales revenue growth outside the US, reaching $225 million, demonstrating strong market share expansion in newer markets.
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The company reported an adjusted EBITDA of $8.7 million, marking a half-on-half improvement of $20.5 million, showcasing the effectiveness of its profitability-focused strategy.
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Repeat customers now account for 69% of gross revenues, up from 67%, indicating strong customer loyalty and engagement.
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Cettire Ltd ( ASX:CTT ) maintained a robust balance sheet with $61.4 million in cash and no financial debt, highlighting financial stability.
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The company successfully launched its flagship store on the JD platform in China and introduced Arabic language capabilities, enhancing its localization strategy and market penetration in the Middle East and China.
Negative Points
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Sales revenue decreased by 3% year-on-year to $382.8 million, primarily due to the impact of US tariff changes and softer demand in the region.
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The elimination of the de minimis duty exemption in the US led to increased fulfillment costs, negatively affecting delivered margins.
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New customer additions slowed, reflecting softer demand and a strategic reduction in paid marketing spend.
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The global personal luxury goods market declined by approximately 2% in 2025, posing challenges for Cettire Ltd ( ASX:CTT ) in a tough luxury market environment.
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The company's auditor highlighted a material uncertainty related to going concern, partly due to a current asset shortfall influenced by reclassification of VAT receivables.
Q & A Highlights
Q: Can you talk about how delivered margin progressed through the half and the factors influencing it? A: Timothy Hume, CFO, explained that the delivered margin was 15% in Q1 but decreased in Q2 due to the impact of US de minimis changes, which increased fulfillment costs. The duties attachment rate in the US is now 100%, affecting the percentage margin. Most of the margin decline is cyclical, but the increased duties in the US are structural. There is potential to grow the delivered margin back to 20% plus over the medium term.
Q: What are the main levers that enabled the turnaround in EBITDA from negative $12 million to positive $9 million? A: Timothy Hume, CFO, highlighted that despite challenges like the US tariff changes, Cettire improved EBITDA by $20 million over two quarters by increasing pricing to absorb duties, moderating promotional activity, and driving efficiencies in fulfillment. Strategic and conservative marketing investments also contributed to the improvement.
Q: What's driving growth outside the US, and how is margin expansion in regions like the Middle East and China progressing? A: Dean Mintz, CEO, noted that Cettire is early in many large luxury markets. Localization initiatives, such as launching an Arabic language site in the Middle East and a flagship store on JD in China, have been beneficial. These efforts are part of a broader strategy to grow market share outside the US.
Q: How do you balance increasing sales and engagement in existing markets with expanding into new locations? A: Timothy Hume, CFO, stated that while Cettire aims to grow in both areas, recent efforts have focused more on engaging existing customers due to challenging returns on marketing investments. The company has seen strong engagement and retention rates with existing customers, and as market conditions improve, they plan to increase outward marketing investments, particularly in newer markets.
Q: Why did the auditor highlight a material uncertainty regarding going concern, and will this affect supply chain relationships? A: Timothy Hume, CFO, clarified that the accounts are unqualified, and the auditor's note is due to a technical accounting point related to the reclassification of tax receivables. The supply chain engagement remains strong, with no expected changes in relationships or terms.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
