category: consumer

Key Highlights

  • Revenue reached a record $664.6 million, increasing 10.6% from $600.7 million in FY25.
  • Underlying EBITDA excluding foreign exchange effects rose 28.0% to $25.9 million, while reported EBITDA increased 16.6% to $21.9 million.
  • Cash and cash equivalents declined 15.0% to $122.7 million, following $30 million of on-market share buy-backs during FY26.
  • FY27 Revenue trading has started 13% below the corresponding period last year, although contribution Margin dollars are up 10%, while management is targeting EBITDA of $33 million to $40 million.

Temple & Webster Group Limited (ASX:TPW) reported record revenue of $664.6 million for FY26, up 10.6% from $600.7 million a year earlier. The result was delivered despite what the company described as a challenging consumer environment, with the pace of growth moderating during the second half.

Delivered margin increased 5.5% to $201.0 million, compared with $190.5 million in FY25. Reported EBITDA rose 16.6% from $18.8 million to $21.9 million, producing an EBITDA margin of 3.3%.

Underlying EBITDA excluding unrealised foreign exchange losses and other specified items increased 28.0%, from $20.2 million to $25.9 million. Its margin increased from 3.4% to 3.9%, an improvement of 53 basis points. The underlying result excludes $0.9 million of Melbourne Warehouse transfer costs, $2.4 million of New Zealand start-up Investment costs and $0.7 million of unrealised foreign exchange losses.

Customer Metrics and Product Mix Improve

Temple & Webster's active customer base reached approximately 1.3 million, 5% higher than in FY25. Revenue per active customer increased 8% to $494, supported by higher average order values during the second half. Repeat customers accounted for 62% of total orders, compared with 59% a year earlier.

Exclusive products, including private-label and exclusive drop-ship products, represented approximately 51% of total revenue, up from 45% in FY25. The company's adjacent businesses also expanded, generating $117 million of revenue, 30% higher than the previous year.

Home improvement was a notable contributor, with revenue of $59 million, up 39%. Trade & Commercial revenue increased 16% to $56 million. New Zealand, launched in October 2025, generated $3 million of revenue across more than 7,400 orders during FY26.

Cash Position Declines Following Buy-Backs

Cash and cash equivalents fell 15.0%, from $144.3 million to $122.7 million at 30 June 2026. The reduction occurred alongside $30 million of on-market share buy-backs during the financial year.

The company generated $24 million of Operating Cash Flow during FY26. Fixed costs as a percentage of revenue also declined from 10.6% to 10.1%, while the dollar value of fixed costs declined on a half-on-half basis during FY26.

These figures provide context for the change in cash: the balance-sheet reduction was accompanied by Capital returned through the buy-back program rather than being solely attributable to operating cash generation.

FY27 Starts With Lower Revenue Trading

The early FY27 trading update presents a more challenging picture than the full-year result. Revenue for the period from 1 July to 17 August 2026 was down 13% compared with the corresponding period last year. The company noted that this comparison follows 28% revenue growth during the opening part of FY26.

At the same time, contribution margin dollars were reported to be 10% higher over the same period. This indicates that the decline in revenue has not translated into an equivalent reduction in contribution margin dollars during the reported period.

Management is targeting FY27 EBITDA of $33 million to $40 million, compared with $21.9 million in FY26. This represents an indicated increase of approximately 50% to 80%. The company's incoming CEO, Susie Sugden, is expected to provide further details of the strategy aimed at returning the Business to double-digit top-line growth at the AGM and H1 FY27 results briefing.

Strategic Expansion Remains Central

Temple & Webster continues to expand beyond its traditional furniture and homewares offering. The company identifies home improvement, Trade & Commercial and New Zealand as areas where it has comparatively low penetration.

Its Market Share increased from 2.7% in FY25 to 2.9% in FY26, although the company noted that stronger first-half performance was partly offset by weaker trading conditions in the second half. Exclusive products and adjacent categories remain important components of the group's revenue mix.

Conclusion

Temple & Webster entered FY27 after delivering record FY26 revenue and higher profitability, with underlying EBITDA excluding foreign exchange effects rising 28% to $25.9 million. Customer numbers, repeat purchasing, exclusive-product contribution and adjacent-category revenue all increased, while the cash balance declined 15% following the deployment of $30 million on share buy-backs. The immediate FY27 trading data is less favourable, with revenue down 13% year-on-year through 17 August, although contribution margin dollars increased 10%. The company's FY27 performance will therefore depend on how effectively it converts its improved unit Economics and expanding category exposure into renewed revenue growth.