Shares in THG plc jumped 15% in early trading today (writing at 9.30am) after it reported its latest quarterly results.
Group revenue grew almost 1% to £408.8 million for the Q3 period ended 30th September 2026.
Its nutrition division grew revenue 3.7% to £152.4m in the period, while its beauty division was down 0.7% to £256.4m.
The eCommerce group said its strong profitability momentum had driven an upgrade of FY26 adjusted EBITDA expectations to £103m – ahead of both market consensus and management’s previous expectations.
THG added that it was on track to deliver the first year of positive free cash flow since its 2020 IPO, with FY26 expectation of £25m to £35m, in line with consensus.
One of the potential reasons for the share price increase is a significant correction in whey commodity pricing, with prices declining 20% since the 10th September 2026 interim results – “providing an increasingly encouraging backdrop for THG Nutrition margins in FY27”.
Q4 revenue growth is expected to accelerate compared with Q3, supported by the timing of dispatches across THG Beauty for advent, manufacturing and own-brands, it said.
However its current market cap of around £520m is way below its £5.4bn valuation at IPO.
THG demerged its Ingenuity tech platform into a separate private company at the start of 2025.
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“Following a particularly strong first half of 2026, I’m pleased to report that our momentum has continued through Q3, with profitability exceeding our expectations. This has enabled us to upgrade our full-year Adjusted EBITDA expectation to £103m, ahead of market consensus,” said founder and CEO Matt Moulding.
“Alongside disciplined working capital management, we remain on track to deliver our first year of positive free cash flow since IPO, with expectations of generating £25m to £35m in FY26. This represents a significant milestone for THG and reflects the progress we have made in strengthening the group’s financial position.
“Strategically, Q3 has been another period of significant progress. Myprotein’s omnichannel strategy has taken a major step forward, with new partnerships involving globally recognised brands including Five Guys, Krispy Kreme, Gold’s Gym, Caffè Nero and Pladis UK. These partnerships further extend Myprotein’s reach beyond its traditional direct-to-consumer channels, creating exciting opportunities for future growth.
“In THG Beauty, innovation remains central to our strategy. Initiatives including the YouTube Shopping Affiliate Programme and our AI Beauty Advisor demonstrate our commitment to remaining at the forefront of digital beauty commerce, embracing new technologies and changing consumer shopping behaviours.
“Q4 is traditionally our busiest and most cash-generative quarter, and we enter this important trading period with confidence. With strong operational momentum, improving profitability and continued strategic progress across both divisions, we expect to deliver an acceleration in group revenue in Q4.”