Key Highlights

• Koala swung from a loss to a profit in the year to 30 June 2026.

• Sales grew faster than costs, lifting operating leverage.

• The United States Business expanded strongly in local currency.

• Koala listed on 31 March 2026, so this is its first full-year report.

Koala (ASX:KOA) swung from a loss to a profit in the year ended 30 June 2026 because sales grew faster than costs, led by a United States business that expanded by more than two-thirds in local currency. The direct-to-consumer furniture seller reported A$332.3 million of Revenue and statutory net profit after tax of A$24.6 million.

For a company that listed only on 31 March 2026, the result gives investors their first full-year report to judge.

A digital-native furniture brand

The Koala (ASX:KOA) Company Limited sells furniture, mainly sofas and sleep products, through a direct-to-consumer model built around its own digital channels. The ASX classifies it in the Consumer Discretionary sector, in the distribution and retail industry group, and lists it in the S&P/ASX All Ordinaries.

It trades in four markets: Australia, Japan, the United States and, newly, the United Kingdom. The company estimates the opportunity across its current four markets at A$52 billion.

What the FY26 numbers show

Revenue rose 20.1 per cent from A$276.7 million, or 24.4 per cent in constant currency. Gross Margin improved 2.9 percentage points to 65.3 per cent, and contribution margin rose to 26.5 per cent.

Statutory EBITDA was A$22.4 million, against A$7.4 million a year earlier. Pro forma EBITDA of A$27.9 million beat the A$24.8 million forecast in the March 2026 prospectus, although pro forma figures are unaudited and not prepared under Australian accounting standards.

Net profit of A$24.6 million exceeded statutory EBIT of A$17.4 million, so items below operating profit contributed. Readers should check the accounts for tax and other effects before treating that figure as a run rate.

Management lists four priorities: strengthening the core range, expanding sitting furniture, entering new global markets and building Brand equity. The year included next-generation launches in sitting furniture and sleep, and the text also mentions a flagship showroom in Tokyo.

Where growth came from

Australia produced A$166.7 million of revenue, up 10.7 per cent. Japan contributed A$89.4 million, up 23.5 per cent in local currency, while the United States reached A$74.9 million, up 67.6 per cent in local currency.

The mix matters. The United States and Japan carried gross margins of 69.8 per cent and 68.1 per cent, against 61.8 per cent in Australia, so faster growth overseas lifts the group average.

Operating costs fell to 18.1 per cent of revenue from 20.0 per cent, which supplied the Operating Leverage behind the profit swing. Contribution margin dollars rose 31.2 per cent to A$88.0 million, growing faster than revenue.

Balance sheet and trading

Koala (ASX:KOA) ended the year debt-free with net cash of A$71.2 million and Operating Cash Flow of A$27.4 million, or A$28.6 million on its measure net of Lease liabilities. The auditor gave an unmodified opinion. No Dividend was paid, recommended or declared for FY26, and the trading update refers only to a pathway to dividends.

In the eight weeks to 23 August 2026, ordered revenue grew 27 per cent in constant currency, or 20 per cent in Australian dollars. Ordered revenue is a sales measure, not recognised revenue.

Risks and milestones

Furniture is a discretionary purchase, so consumer Demand can weaken quickly. Koala (ASX:KOA) depends on online Marketing to attract customers, and its foreign Earnings are exposed to exchange rates, as the gap between constant-currency and reported growth shows.

Expansion adds execution risk. The United Kingdom entry is new, and the United States must keep growing at a pace that justifies its spending.

Net Assets were A$38.1 million at year end, which shows how recently the company was capitalised. Shareholders can look to the annual general meeting, for which notice was lodged on 19 October 2026, and to the half-year result for the period to 31 December 2026, though no date has been announced for that report.