ATG FY25: Revenue up, margins down, and a bold step with Chairish
Auction Technology Group’s full-year numbers landed slightly ahead of market expectations. Revenue rose 9.2% to $190.2m, helped by the August acquisition of Chairish, while profit metrics were mixed as ATG absorbed a lower-margin mix and booked a large non-cash impairment.
The strategic thread is clear: grow the take rate through value-added services (shipping, payments, marketing) and expand the buyer-seller flywheel. Cash generation held up well and the outlook guides to steady revenue growth and deleveraging in FY26.
Headline figures investors should know
| Metric | FY25 | FY24 | Comment |
|---|---|---|---|
| Revenue | $190.2m | $174.2m | +9.2% reported; +4.4% reported organic (ex-Chairish) |
| Adjusted EBITDA | $76.8m | $80.0m | (4)% with a 40.4% margin (42.7% ex-Chairish) |
| Operating (loss)/profit | ($134.2m) | $32.4m | Driven by $150.9m non-cash goodwill impairment |
| Adjusted diluted EPS | 37.9c | 38.6c | (2)%, reflecting lower PBT |
| Basic (loss)/earnings per share | (118.2)c | 19.7c | Impacted by impairment |
| Adjusted operating cash flow | $73.7m | $65.8m | 96% conversion (FY24: 82%) |
| Adjusted free cash flow | $45.5m | $39.4m | Up 15.5% |
| Adjusted net debt | $174.0m | $114.7m | Leverage 2.2x (SFA basis), post Chairish |
| GMV | $3.3bn | $3.3bn | Stable; A&A +1%, I&C (1)% |
| Group take rate | 4.8% | 4.5% | Value-added services doing the work |
Where the growth came from: value-added services and A&A momentum
ATG operates two segments: Arts & Antiques (A&A) and Industrial & Commercial (I&C). A&A revenue rose 13.7% to $115.2m including two months of Chairish, or 5.4% on a reported organic basis. I&C grew 2.9% to $75.0m, 2.6% organic.
The engine room is value-added services: shipping (atgShip), payments (atgPay) and marketing (atgAMP). These lifted the Group’s take rate to 4.8%, with A&A hitting 10.3% for the first time, up 0.5 percentage points. I&C’s take rate edged to 3.0%.
Gross Merchandise Value (GMV – the total sales value on the platforms) was stable at $3.3bn. The Group conversion rate – the proportion of listed value that turns into GMV – stayed broadly flat at 27%.
Product upgrades that matter
- atgShip revenue more than doubled. Over 1,000 auctioneers onboarded by September (c.500 in March). A US mandate now requires A&A auctioneers to offer atgShip.
- atgPay processed 67% of US gross transaction value on LiveAuctioneers, signalling growing adoption.
- atgXL cross-listing rolled out with a single-upload feature. Auctioneers saw sustained price uplifts averaging over 10% when cross-listing.
- AI-driven recommendations and in-house lot categorisation models are improving search and discovery.
The $150.9m impairment: what it is and why it happened
ATG recorded a non-cash goodwill impairment of $150.9m, split between A&A marketplaces ($142.6m) and Auction Services ($8.3m). Management cites weaker macro assumptions, a higher discount rate, a reduced long-term growth rate and lower profits announced on 4 August 2025 which left market capitalisation below net asset value.
Important nuance: no impairment was recorded for I&C or for Chairish. While the charge turns statutory earnings negative, it does not affect cash flow.
Chairish acquisition: a strategic bridge into list-price A&A
ATG bought Chairish on 4 August 2025 for total consideration of $84.8m, funded from cash and debt. Chairish broadens ATG’s A&A offer into list-price inventory and brings 1.3 million items, 12,000 sellers and 4.5m monthly visits. In 2024 Chairish generated $51.2m of revenue, with over 80% from North America.
In the two months post-acquisition Chairish contributed $8.4m of revenue and a $3.2m loss before tax, which is consistent with mix and integration timing. Operational run-rate synergies of $4m are already achieved against an $8m target, with “line of sight” to the rest.
Why it matters: ATG can cross-pollinate auction and list-price formats, increase liquidity and monetise via shipping, payments and seller marketing. That should support A&A take rate and buyer growth.
Margins, cash and debt: the trade-offs
Adjusted EBITDA fell 4.0% to $76.8m as revenue mix shifted towards lower-margin services (notably shipping), Chairish was included for two months, and performance-related pay stepped up. The Group’s adjusted EBITDA margin was 40.4% or 42.7% excluding Chairish.
On the plus side, cash generation was strong: adjusted operating cash flow of $73.7m at a 96% conversion, yielding $45.5m adjusted free cash flow. ATG refinanced into a new revolving credit facility in February 2025 and expanded it to $275.0m in August. Drawn balance at year-end was $190.0m, producing adjusted net debt of $174.0m and leverage of 2.2x (per the senior facilities agreement).
ATG also repurchased $16.5m of shares into treasury during the year. Dividends remain off the table for the foreseeable future.
Outlook and guidance for FY26
Management expects performance in line with market expectations for FY26 – revenue of $238.0m to $245.7m (mid-point $241.6m) and adjusted EBITDA of $82.9m to $87.0m (mid-point $85.5m). ATG guides to:
- Group revenue growth of 4-5% at constant currency on a pro-forma basis (with Chairish consolidated for a full year). This equates mechanically to 28-29% when comparing to FY25 which only included two months of Chairish.
- Adjusted EBITDA margin of 34.5-35.5% for the Group, reflecting mix and Chairish’s full-year contribution.
- Strong adjusted free cash flow and Group leverage well below 2x by year-end FY26.
Trading in the first month of FY26 has been “robust” and in line with expectations.
My take: steady operational progress, but mind the margin mix
There is a lot to like operationally. GMV stabilised, the take rate moved up, and value-added services are gaining traction. atgShip’s mandate and atgXL’s cross-listing uplift should underpin A&A monetisation, while atgPay adoption points to a stickier ecosystem. Cash conversion at 96% is excellent.
The watch-outs are also clear. The impairment underscores tougher assumptions in A&A and higher discount rates. Margins are resetting lower due to mix and the full-year inclusion of Chairish. Leverage rose with the deal – though guidance to sub-2x by FY26 year-end is reassuring.
Net-net, ATG is executing on a sensible marketplace playbook: drive conversion and GMV, then monetise the transaction with services. If Chairish synergies land and shipping/payments scale cleanly, that should support revenue per transaction – even if headline GMV is only modestly growing.
What I’ll be watching in FY26
- Chairish integration – progress to the $8m run-rate synergy target and any updates on cross-listing between auction and list-price inventory.
- Take rate momentum – can A&A stay above 10% and does I&C continue to inch up?
- Shipping and payments penetration – atgShip usage post-mandate and atgPay share beyond the 67% on LiveAuctioneers.
- Margin trajectory – delivery within the 34.5-35.5% range despite mix drag.
- Deleveraging – tracking towards leverage “well below 2x” by year-end.
Quick jargon buster
- GMV: the total sale value of items sold on ATG’s platforms.
- Take rate: ATG’s marketplace revenue as a percentage of GMV.
- Conversion rate: GMV as a percentage of listed value (THV).
- Adjusted EBITDA: earnings before interest, tax, depreciation and amortisation, excluding certain one-offs the company calls out.
Bottom line: these results show a business leaning into its strengths. The big impairment grabs the headlines, but the investment case hangs on execution – growing services, improving take rate and integrating Chairish without losing margin discipline.
