Kogan.com Ltd (ASX:KGN) has a Dividend Reinvestment Plan (DRP) in operation for its FY26 final dividend, with shares priced at a 2.5% discount to the market price. The online retailer declared a fully franked final dividend of 8 cents per share after lifting gross sales above $1 billion and returning to a statutory profit.

Latest developments

Kogan.com reported its FY26 results, with group gross sales rising 12% to approximately $1.04 billion and Revenue increasing to $510.7 million from $488.1 million. Statutory profit after tax was $11.2 million, compared with a loss of $39.5 million in FY25 that included a $46.3 million Goodwill write-down relating to Mighty Ape.

The core Kogan.com Business drove the improvement, while New Zealand's Mighty Ape went through an operational reset. The board declared a fully franked final dividend of 8 cents, taking FY26 dividends to 16 cents, up 14.3% on FY25's 14 cents. The FY25 final dividend had been only partly franked.

The company has also outlined new pay arrangements for founder and chief executive Ruslan Kogan. His fixed pay would fall from $847,838 to about $50,000, the applicable minimum wage, which he intends to donate to charity, with no short-term incentive. Most of his opportunity would come from 6,740,331 performance rights that would vest only if absolute total Shareholder return reaches at least 100% over five years. Shareholders will vote on the proposal, along with a retention award for chief financial officer and chief operating officer David Shafer, at an extraordinary general meeting.

Key numbers

The FY26 interim and final dividends were each 8 cents per share, for a total of 16 cents per share for the year. Both dividends are fully franked, meaning franking credits are attached to the full amount, and their value depends on each investor's tax position.

About the company

Kogan.com is an Australian online retail and services group. Its portfolio includes Kogan Retail, marketplaces, loyalty programs, verticals, Dick Smith, Matt Blatt, Brosa and Mighty Ape. It earns revenue across Australia and New Zealand from exclusive brands, third-party brands, paid membership subscriptions and platform-based services.

Founder Ruslan Kogan is chief executive.

How the DRP works

Kogan.com's results announcement and dividend notice lodged with the ASX indicate that the DRP applies to the final dividend. Under the company's DRP terms, shares are priced at a 2.5% discount to the volume-weighted average price (VWAP) of Kogan.com shares sold on the ASX over the five trading days before the record date.

Participation is optional and open to eligible shareholders who elected by the deadline set in the dividend notice. Under a DRP, the number of shares a participant receives is the dividend amount divided by the discounted DRP price, so the final allocation is only known once the pricing period ends. The DRP rules and the latest dividend notice set out eligibility and election requirements for future dividends.

Why it matters for income investors

The 2.5% discount means DRP participants acquire shares slightly below the VWAP used in the pricing methodology. Reinvested shares are themselves eligible for any later dividends, although future dividends are not guaranteed.

The dividend has also moved back to full franking after FY25's final was only partly franked, which is relevant for investors who can use franking credits. There is a gap of more than two months between the Record Date and the payment date for the final dividend, during which the dividend is yet to be paid or reinvested.

What comes next

The next milestones are the extraordinary general meeting to vote on the executive pay arrangements and payment of the final dividend and allocation of DRP shares. The company has pointed to continued growth in platform-based sales at Kogan.com and to Mighty Ape's ongoing turnaround, although these outcomes are not assured.

Any future dividends, franking levels and DRP terms will be set by the board and disclosed in dividend notices.

Risks and context

Kogan.com's profit is modest relative to its revenue, and online retail is highly competitive and sensitive to consumer spending, freight costs and inventory management. Mighty Ape's turnaround is still in progress, and broader economic conditions remain a Factor for discretionary spending.

The proposed pay arrangements are subject to a shareholder vote. If DRP shares are newly issued, they add to the share count and slightly dilute holders who take cash. Reinvested dividends are still assessable income, and each DRP parcel sets a new cost base for Capital Gains Tax purposes, so accurate records matter.

Conclusion

Kogan.com (ASX:KGN) has a DRP in operation, priced at a 2.5% discount to the five-day VWAP, for its fully franked 8 cent final dividend. The FY26 result showed a return to statutory profit and gross sales above $1 billion, while a competitive market, Mighty Ape's reset and the pending executive pay vote remain key areas to monitor.

Key Insights

Kogan.com (ASX:KGN) returned to a statutory profit in FY26 after a FY25 loss driven by the Mighty Ape goodwill write-down, with the core Kogan.com business leading the improvement. FY26 dividends totalled 16 cents per share, fully franked, compared with a partly franked FY25 final dividend.

The DRP gives eligible shareholders the option to reinvest the final dividend at a 2.5% discount to the five-day VWAP. The shareholder vote on the chief executive's performance-rights-based pay arrangement and the progress of Mighty Ape's reset are the main pending matters.