Auction Technology Group lifts FY26 revenue guidance after 7.8% Q3 growth

What happened in Auction Technology Group's third quarter?

Auction Technology Group reported another quarter of revenue growth and raised its full-year outlook, supported by its Arts & Antiques division and continued healthy cash generation.

For the three months ended 30 June 2026, group revenue increased by 7.8% on a pro forma constant currency basis. Pro forma growth at actual exchange rates was 7.7%.

Constant currency strips out the effect of exchange-rate movements, making it easier to compare the underlying performance between periods. Pro forma figures include Chairish for the full comparative period, as though it had been part of the group throughout.

The small gap between the two growth rates suggests currency movements had only a limited impact on the headline result during the quarter.

ATG's Q3 update at a glance

Metric	Q3 or current position	Previous position or guidance
Pro forma constant currency revenue growth	7.8%	Not disclosed for Q2 alone
Pro forma revenue growth at actual rates	7.7%	Not disclosed for Q2 alone
FY26 revenue growth guidance	5.5%-6.5%	5.0%-6.0%
FY26 adjusted EBITDA margin guidance	34.5%-35.5%	Unchanged
Expected margin outcome	Bottom end of range	Bottom end of range
Adjusted net debt to adjusted EBITDA	1.7 times at end of June	2.2 times at end of FY25
FY26 year-end leverage target	Around 1.5 times	Unchanged
Chairish operational synergy target	$8 million run-rate by FY27	Unchanged

Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, with certain items removed by management. The adjusted EBITDA margin shows this measure of profit as a percentage of revenue.

Revenue guidance moves higher

Management now expects FY26 revenue growth of 5.5%-6.5% on a pro forma constant currency basis. That is a modest upgrade from the 5.0%-6.0% range issued alongside the half-year results in May.

The increase matters because it suggests ATG's positive trading trend continued into the third quarter. The new range raises both ends of the previous guidance by 0.5 percentage points.

Value-added services are expected to be the principal growth driver, alongside healthy commission revenue contributions from LiveAuctioneers and Chairish.

Value-added services are additional products provided around ATG's core marketplaces. The announcement does not break down their individual revenue contribution, growth rate or profitability.

Arts & Antiques drives progress

ATG said its Arts & Antiques division delivered good revenue growth. LiveAuctioneers continued to progress, while Chairish produced a strong performance.

This is encouraging because both marketplaces are named as important contributors to the upgraded full-year revenue outlook. It also indicates that Chairish is contributing to trading performance while its integration into the wider group continues.

Management said the Chairish integration is progressing well. ATG remains on track to deliver the previously announced $8 million operational synergy run-rate by FY27.

A synergy run-rate represents the annualised level of savings or other operational benefits expected once integration measures are fully in place. The update does not disclose how much of the $8 million has already been secured.

The picture was less positive in Industrial & Commercial. Revenue remained in decline, although the rate of decline was consistent with that reported for the first half.

There is no sign in this update that conditions in the division worsened during Q3, but investors are still waiting for evidence of a return to growth. ATG did not disclose separate Q3 revenue figures or percentage movements for either operating division.

Why margins are not rising with revenue guidance

Although the revenue outlook improved, adjusted EBITDA margin guidance remains unchanged at 34.5%-35.5%.

Management continues to expect the result to land at the bottom end of that range. This reflects the expansion of lower-margin value-added services and the inclusion of a full year of Chairish revenue in FY26.

That creates an important distinction for investors. The group expects more revenue growth, but the mix of that growth is not currently expected to lift the profit margin.

Lower-margin services can still add profit in absolute terms, but they generate less adjusted EBITDA for each pound of revenue. The announcement does not provide an updated adjusted EBITDA figure or quantify the effect of the revenue upgrade on expected earnings.

Cash generation and leverage improve

Cash generation remained healthy during the quarter. Adjusted net debt to adjusted EBITDA fell to 1.7 times at the end of June, down from 2.2 times at the end of FY25.

This leverage ratio compares adjusted net debt with adjusted EBITDA under the group's senior facilities agreement. A falling ratio generally indicates that debt is becoming more manageable relative to earnings.

ATG attributed the improvement to continued free cash flow generation and disciplined capital allocation. It still expects good adjusted free cash flow generation across FY26 and leverage of around 1.5 times by the end of the year.

The reduction from 2.2 times to 1.7 times is one of the stronger features of this update. However, the announcement does not disclose the absolute level of net debt, free cash flow generated during Q3 or any revised capital allocation plans.

What investors should watch next

There are several clear positives in the announcement. Group revenue growth remained healthy, full-year guidance moved higher, Arts & Antiques performed well and leverage continued to decline. Chairish integration also remains on schedule against the existing synergy target.

The main counterweight is profitability. Adjusted EBITDA margin guidance has not increased, and management still expects to report a result at the bottom end of the 34.5%-35.5% range. Industrial & Commercial revenue also remains in decline.

Chief executive Duncan Painter said his early discussions with ATG's employees, customers and shareholders had reinforced his confidence in the marketplaces and the scale of the opportunity. His stated priorities include strengthening the platforms, improving support for buyers and sellers, and turning that opportunity into sustained, profitable growth.

The next scheduled update is ATG's FY26 pre-close trading update and notice of results on 22 October 2026. Investors will be looking for confirmation that revenue remains within the upgraded range, leverage reaches around 1.5 times and the margin lands no lower than expected.