The Beauty Tech Group Reports Record FY25 Results, Exceeding Expectations Post-IPO

FY25 beats expectations with margin surge and cash to spare

The Beauty Tech Group’s maiden full-year results as a listed company are punchy. Revenue jumped 39.4% to £141.0m, gross margin stepped up 590 basis points (bps, a hundredth of a percent) to 62.7%, and adjusted EBITDA rose 63.8% to £37.5m. It is the third upgrade since IPO and comfortably ahead of the tone set at listing.

Why it matters: the Group has completed its pivot to own-brand devices, and the economics now look like a premium consumer tech business – high gross margins, disciplined marketing and strong cash conversion.

Key FY25 numbers	FY25	FY24	Change
Revenue	£141.0m	£101.1m	+39.4%
Own-brand revenue	£140.9m	£88.1m	+60.0%
Gross margin	62.7%	56.8%	+590bps
Adjusted EBITDA	£37.5m	£22.9m	+63.8%
Adjusted EBITDA margin	26.6%	22.6%	+400bps
Adjusted profit before tax	£29.5m	£14.9m	+98%
Basic EPS	£0.11	£0.02	n/a
Adjusted free cash flow	£34.4m	£15.9m	+115%
FCF conversion (of adj. EBITDA)	91.7%	69.4%	+2,230bps
Net cash/(debt)	£40.8m	(£27.1m)	n/a

Quick jargon check: adjusted EBITDA is operating profit before depreciation and amortisation, stripping out share-based payments and exceptional items. It’s a common proxy for cash operating profit.

Own-brand engine drives the beat

The strategy to exit low-margin third‑party sales is doing exactly what it should: lifting margins and cash. Third‑party revenue fell from £13.1m to £0.1m by design, which reduced the headline growth rate by c.13 percentage points – but transformed profitability.

• CurrentBody Skin: £125.8m revenue, up 59%, powered by the Series 2 LED mask and broader device ranges.
• ZIIP Beauty: £13.2m revenue, up 46%, with gross margin expanding to 71.7% as redesigned products lowered input costs. Management expects further benefit in FY26 as older, higher‑cost inventory washes through.
• Tria Laser: £2.0m from legacy sell‑through ahead of the March 2026 relaunch of the Series 2 Tria 4X Hair Removal Laser. Dual manufacturing being set up for scale.

The upshot: a 62.7% Group gross margin and a 26.6% adjusted EBITDA margin, despite continuing to invest in marketing and product development.

Geographic mix: US out in front, but well diversified

Growth was broad-based. Every region delivered over 25% revenue growth, led by the US and Canada.

• US & Canada: £56.2m, up 51%, now ~40% of Group revenue.
• Rest of Europe: £31.3m, up 36%.
• UK & Ireland: £28.8m, up 27%.
• Asia: £18.0m, up 31%.
• Rest of World: £6.7m, up 49%.

Importantly, no single market accounts for more than 40% of revenue – handy diversification if one territory slows.

Balance sheet reset: debt-free and cash generative

Post-IPO, the Group is debt-free, sitting on £40.8m net cash and an undrawn working capital facility with Santander that was increased to £12.5m in March 2026 (from £5.0m). Cash generation is the standout feature: adjusted free cash flow of £34.4m with 91.7% conversion of adjusted EBITDA.

Capital spend was modest at £6.2m (4.4% of revenue), of which £1.9m related to non-recurring office and clinic investments; underlying recurring capex was £4.3m (3.0% of revenue). Adjusted ROCE came in at 34.2%, and operating ROCE was 57.9% when you strip out surplus cash – well above a typical cost of capital.

FY26 outlook: revenue in line with consensus, profit expected ahead

Management reports a “very encouraging” Q1 FY26 across core markets and channels. Revenue is expected to be in line with current market expectations for FY26 (£160.0m), with profit anticipated to be ahead thanks to stronger margins.

Two mechanical tailwinds will help reported numbers this year: the elimination of pre‑IPO interest costs of £6.3m and IPO‑related exceptional items of £8.0m. The balance sheet flexibility is also improved with the enlarged £12.5m facility. Offsetting that, FY26 will carry a full year of ongoing plc costs.

Strategy and pipeline: building moats in at‑home beauty tech

The Beauty Tech Group operates three complementary brands across all four core clinical technologies used in aesthetics – LED, Radio Frequency, Microcurrent and Laser. There are over 40 products and extensions in development, with 2–3 year cycles, integrated clinical research and Key Opinion Leader feedback. Manufacturing resilience is improving too, with dual-source production across the US, China, India and Thailand; Indian manufacturing investment began in FY25 and continues into FY26.

Risks and watch-outs to monitor

• Tax rate: FY25’s effective rate was 34.9% due to non‑deductible IPO costs and pre‑IPO interest; it is expected to normalise towards the statutory rate from FY26.
• Warranty provision: increased to £5.5m, reflecting scale and product mix – sensible, but worth tracking against claims rates.
• Digital marketing dependency: algorithm and policy changes at major platforms can move the needle, though the Group notes c.75% of revenue comes from direct brand searches, which helps.
• Macro and supply chain: diversified geographies and dual‑sourcing help, but tariffs or shipping disruption could still bite.
• Full-year plc costs: a small margin drag in FY26, partially offset by the removal of pre‑IPO financing and exceptional items.

Why the numbers matter for shareholders

In plain terms, this is a higher‑quality business than it was a year ago. Own-brand revenue now accounts for virtually all sales (£140.9m of £141.0m), margins have stepped up, and cash conversion is excellent. The debt-free balance sheet with £40.8m net cash gives optionality: more investment in R&D and marketing, selective M&A, and – in time – potential buybacks or dividends (the Board will keep timing under review).

Brand cadence is healthy: CurrentBody Skin keeps compounding, ZIIP’s margin step-up has momentum into FY26, and Tria’s relaunch in March 2026 opens a scaling opportunity in hair removal. With products available in over 90 countries and no single market above 40% of revenue, execution risk is more about brand building and fulfilment than balance sheet stress.

My take: confident, cash-rich and still investing

Positives I like

• Margin mix shift: the deliberate exit from third‑party sales is paying off in a 62.7% gross margin and 26.6% adjusted EBITDA margin.
• Cash discipline: 91.7% adjusted EBITDA-to-cash conversion and £40.8m net cash give real firepower.
• Diversified growth: all regions grew 25%+, with US & Canada up 51% to £56.2m and still under the 40% concentration line.
• Operational resilience: dual-source manufacturing and an expanded working capital facility reduce execution risk.

Things to keep an eye on

• FY26 profitability will benefit from non‑recurring tailwinds; underlying margin progress still needs to continue.
• Warranty and returns need tight control as volumes rise and new products scale.
• Full-year plc costs will be in the base from FY26, partly offset by interest/exceptional items falling away.

Overall, these results show a business growing quickly, improving its unit economics and converting profit to cash. With FY26 revenue expected to be in line with consensus and profit ahead, plus a clean balance sheet and a deep product pipeline, The Beauty Tech Group looks well set for another year of scalable, profitable growth.