Highlights

  • FY2025 gross sales increased to approximately AUD 930.9 million as margins improved.
  • Marketplace, loyalty and advertising businesses delivered faster growth than retail sales.
  • Interim dividend increased as profitability recovered during FY2026.
  • Mighty Ape turnaround remains an important factor for future earnings.

Kogan.com Limited (ASX: KGN) has continued reshaping its business after the post-pandemic slowdown by focusing on higher-margin operations and improving profitability. Rather than relying primarily on traditional online retailing, the company has expanded its marketplace, subscription and advertising businesses, which have become increasingly important contributors to earnings. Investors are now assessing whether this strategy can deliver consistent long-term growth while supporting shareholder returns.

For FY2025, Kogan.com reported gross sales of approximately AUD 930.9 million, representing a 15.1% increase from the previous year. Gross margin improved to 38.9%, while adjusted EBITDA reached approximately AUD 36.8 million. Although the company reported a statutory loss, this largely reflected a non-cash impairment relating to its New Zealand subsidiary, Mighty Ape, rather than deterioration in its core Australian operations.

Trading momentum continued into FY2026. During the first half, gross sales increased to approximately AUD 572.4 million, supported by stronger customer demand and improving margins. The company also reported growth across its core Kogan.com platform, while Mighty Ape showed signs of recovery following operational changes. By the 10-month trading update, management indicated earnings were tracking towards the upper end of its guidance range.

One of the key changes within the business has been the continued expansion of Kogan Marketplace. Instead of owning all inventory, the marketplace allows third-party merchants to sell products through the platform, generating commission-based revenue with lower capital requirements. Marketplace revenue and other platform-related income, including loyalty subscriptions and advertising, continued growing faster than traditional retail sales during FY2025.

The company's paid membership program, Kogan First, also remains an important source of recurring revenue. Subscription income increased during FY2025 as more customers joined the program, providing higher-margin earnings while encouraging repeat purchases across the platform.

Mighty Ape remains one of the more closely watched parts of the business. After recording a significant impairment during FY2025, the New Zealand operation underwent restructuring and later returned to monthly profitability. Management is also introducing marketplace capabilities within the business, aiming to improve future margins and reduce reliance on inventory-based sales.

Dividend payments have also resumed as profitability improved. The company declared a final FY2025 dividend before increasing its FY2026 interim dividend to 8 cents per share, signalling greater confidence in underlying cash generation. However, future dividends will continue to depend on earnings performance and capital allocation decisions.

What Investors May Watch

Investors may monitor marketplace expansion, recurring subscription revenue, Mighty Ape's recovery, margin trends, customer growth, operating cash flow and management's ability to achieve its FY2026 profitability targets.

Risks

Key risks include weaker consumer spending, intense online retail competition, inventory management challenges, execution of the Mighty Ape turnaround and changing freight or operating costs.