AutoStore (OB:AUTO) Delivers 43% Revenue Growth With 72% Gross Margin

AutoStore Holdings walked into this earnings day with the stock already on a strong run, up roughly 49% over the past month, and priced on a rich P/E of 46.8x. The market had been paying up for the warehouse automation story. The headline from Q2 is that the company backed that optimism with hard numbers. Revenue reached about US$192m and gross margin held at 72%, while adjusted EBITDA margin landed at 45%. For a stock already priced at a premium, that combination of growth and profitability is what mattered most today.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025) US$192.0m vs. US$133.9m (up about 43%)
• Net Income (Q2 2026 vs. Q2 2025) US$29.0m vs. US$11.3m (up about 157%)
• Basic EPS (Q2 2026 vs. Q2 2025) US$0.0086 vs. US$0.0034 (up about 155%)
• Gross Margin and Adjusted EBITDA Margin (Q2 2026) Gross margin of 72% and adjusted EBITDA margin of 45%, both described as high and supported by strong cash generation

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AutoStore earnings reinforce bullish automation story

For bulls, AutoStore looks aligned with the long term automation narrative. Q2 revenue of US$192.0m and order intake of US$218m, together with a US$596m backlog, point to solid demand for the platform across regions and sectors. Margins remain high, with a 72% gross margin and 45% adjusted EBITDA margin, and cash conversion of 84% supports the view that this is a capital efficient model rather than a cash hungry hardware story.

Where the AutoStore bear case still bites

Bears still have angles to watch. Management itself flags project based revenue, which can make quarters lumpy and guidance dependent on timing rather than pure demand. Customer visibility is imperfect, with large framework agreements that carry no volume commitments. Rising investment in product, software and commercial resources could also trim margins in H2. The balance sheet, with net debt of US$90m and a US$350m undrawn facility, reduces immediate financial strain, so current risks sit more in execution than in liquidity.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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