Key Highlights

  • Temple & Webster (ASX:TPW) delivered FY26 Revenue of $664.6 million, up 10.6%, while EBITDA increased 16.6% to $21.9 million.
  • Underlying EBITDA excluding foreign exchange effects rose 28% to $25.9 million, with the Margin increasing from 3.4% to 3.9%.
  • Cash and cash equivalents declined 15% to $122.7 million after $30 million was deployed on share buy-backs during FY26.
  • Early FY27 trading has been weaker, with revenue down 13% year-on-year from 1 July to 17 August, although contribution margin dollars increased 10%.

Temple & Webster Group Limited (ASX:TPW) shares were trading at A$4.22, down 16.44%, or A$0.83, on 19 August 2026 at 3:04 pm, as investors assessed the company's FY26 results alongside a weaker start to the new financial year. The online furniture and homewares retailer reported record annual revenue of A$664.6 million, up 10.6% from A$600.7 million, but its latest trading update showed a 13% decline in revenue for the opening period of FY27.

FY26 Revenue Growth and Higher Earnings

Temple & Webster's FY26 revenue increased by A$63.9 million to A$664.6 million. Delivered margin also rose 5.5% to A$201.0 million from A$190.5 million. EBITDA increased 16.6% to A$21.9 million, compared with A$18.8 million a year earlier.

Underlying EBITDA excluding foreign exchange effects increased 28% to A$25.9 million from A$20.2 million. The corresponding margin expanded from 3.4% to 3.9%, representing an improvement of 53 basis points. The company attributed the underlying result to margin optimisation measures and its operating model.

Fixed costs as a percentage of revenue declined from 10.6% to 10.1%, while the company reported that the dollar value of fixed costs declined through the second half of FY26.

Customer Metrics and Growth Areas

The company reported approximately 1.3 million active customers during FY26, representing a 5% increase. Revenue per active customer rose 8% to A$494, supported by higher average order values during the second half.

Repeat customers accounted for 62% of total orders, compared with 59% in FY25. Exclusive products, including private-label and exclusive drop-ship products, represented approximately 51% of revenue, up from 45% a year earlier.

Several adjacent categories also recorded increases. Home improvement revenue reached A$59 million, up 39%, while Trade & Commercial revenue increased 16% to A$56 million. The company's adjacent businesses collectively generated A$117 million in revenue, 30% higher than the prior year.

Cash Position and Capital Management

Temple & Webster ended FY26 with A$122.7 million in cash and cash equivalents, down 15% from A$144.3 million. The decline occurred after A$30 million was spent on on-market share buy-backs during the year.

Operating cash flow was A$24 million. The company said its capital management priorities remain focused on Investment in growth, technology, artificial intelligence and innovation while maintaining its operating model.

Early FY27 Trading Shows Revenue Decline

The most significant negative data point in the announcement is the start to FY27. Revenue for the period from 1 July to 17 August 2026 was down 13% compared with the same period a year earlier. The company noted that this comparison follows 28% revenue growth at the beginning of FY26.

Contribution margin dollars, however, increased 10% over the same period. The divergence indicates that the revenue decline has not translated proportionally into contribution margin deterioration, although the short trading period remains an important Factor when assessing the company's current trajectory.

FY27 EBITDA Target

Temple & Webster is targeting FY27 EBITDA of A$33 million to A$40 million, compared with A$21.9 million in FY26. This represents an increase of approximately 50% to 80% if achieved.

The company also expects its new CEO, Susie Sugden, to provide further details on its strategy for returning to double-digit top-line growth at the upcoming Annual General Meeting and first-half FY27 results briefing.

Conclusion

Temple & Webster entered FY27 with higher FY26 revenue, EBITDA and underlying profitability, alongside improvements in customer activity and contribution from exclusive and adjacent product categories. However, the 13% decline in early FY27 revenue contrasts with the previous year's growth trajectory and is a key factor behind the market's reaction on 19 August. The A$33 million to A$40 million FY27 EBITDA target therefore places greater emphasis on margin performance and the company's ability to improve revenue momentum during the remainder of the financial year.