Articore, the ASX-listed owner of Redbubble and TeePublic, has reported continued margin expansion and improving revenue trajectory in its third quarter.
The group's marketplace revenue (MPR) declined just 1.1 per cent on a constant currency basis in the three months to March 31, 2026 – an improvement on the 2.7 per cent decline recorded in the prior quarter and the 9.3 per cent fall in the first quarter of FY26.
Gross profit climbed 10.2 per cent on a constant currency basis (1.6 per cent in real terms),with gross margin expanding to 51.9 per cent from 46.7 per cent in the prior corresponding period.
The group's CEO and managing director, Vivek Kumar, praised the progress.
"Over the past year, we have improved revenue trends, expanded to record gross margins, lowered our cost base, and delivered a significant EBIT turnaround,” Kumar said. “The foundations are now firmly in place and we are focused on converting this momentum into sustained, long-term growth in revenue and margin improvement."
The quarter's headline strategic move was the acquisition of Frankly Wearing, an India-based creator-driven print-on-demand marketplace, completed on May 5 this year. The deal gives Articore an engineering base in India and an entry point into a market the company describes as worth over US$1 billion. Straits Research estimates the Indian print-on-demand market will grow at a CAGR of 27.8 per cent, reaching nearly US$6 billion.
The acquisition cost just under US$1 million, equivalent to just under A$1.3 million. Articore's core US market currently accounts for nearly three-quarters of total revenue from contracts with customers.
Articore noted that while the US has depreciated by more than 6 per cent against the Australian dollar since the start of the financial year, the group's embedded operational hedge in the US greatly neutralises any US dollar exchange rate impact at the EBIT and underlying cash flow lines.
As a result, and reflecting continued confidence in its trajectory, the group has reaffirmed its FY26 guidance: GPAPA margin of 27–29 per cent, EBIT of $6 to $10 million and underlying cash flow of $8 to $12 million.
Across its marketplace platforms, more than 75 million designs are listed, predominantly in the apparel space, with around 10,000 new designs uploaded every day. Australia's print-on-demand market is tipped to grow at around 25 per cent CAGR, potentially reaching US$1.7 billion.
Supply chain consolidation following the merger of the Redbubble and TeePublic teams has allowed the group to renegotiate supplier contracts, driving gross margin improvements of more than 400 basis points over the past year.