Kogan.com (ASX:KGN) Swings to Profit as Platform Sales Reach 61 Percent of Gross Profit

Aditi Sarkar

23 October 2026 09:53 PM AEDT

Kogan.com (ASX:KGN) Swings to Profit as Platform Sales Reach 61 Percent of Gross Profit

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Highlights

• Kogan.com reported FY26 revenue of $510.7 million and adjusted EBITDA of $41.8 million, up 14 per cent.

• Statutory profit after tax reached $11.2 million, reversing a $39.5 million loss that included a goodwill impairment a year earlier.

• Mighty Ape cut inventory from $21 million to $10 million and returned to positive adjusted EBITDA in the fourth quarter.

• The board declared an 8 cent fully franked final dividend, lifting the full-year payout to 16 cents per share.

A year after a $46.3 million goodwill impairment pushed it into a loss, online retailer Kogan.com Ltd (ASX:KGN) has reported a statutory profit of $11.2 million for the year ended 30 June 2026. The 24 August 2026 result also showed revenue up 5 per cent to $510.7 million. Shares were trading at A$3.61 on 23 October 2026, up 3.44%.

Margins Do the Heavy Lifting

Gross sales rose 12 per cent to $1,042.3 million and gross profit climbed 11 per cent to $210.9 million. Adjusted EBITDA grew 14 per cent to $41.8 million, lifting the margin 0.7 percentage points to 8.2 per cent. Free cash flow rose 18.2 per cent to $38.3 million, and the company held $36.4 million in cash with no external debt.

The Kogan.com division did most of the work. Revenue rose 16 per cent to $425.2 million, and adjusted EBITDA increased 22 per cent to $45.1 million. Gross margin improved 0.8 percentage points to 43.5 per cent, while fixed costs fell to 12.8 per cent of revenue from 13.8 per cent. Products revenue grew 18.0 per cent to $304.6 million, Marketplaces revenue rose 25.9 per cent to $38.7 million, and loyalty subscriptions, which cover Kogan FIRST and Mighty Ape PRIMATE, added 14.3 per cent to $61.4 million.

Capital-light platform-based sales contributed 61 per cent of group gross profit, up from 59 per cent. Kogan also deployed artificial intelligence in customer care in March 2026, which the company said lowered serving costs and improved resolution times.

Mighty Ape Shrinks to Rebuild

The New Zealand business moved in the opposite direction by design. Mighty Ape revenue fell 30 per cent to $85.6 million as management cut unprofitable categories and cleared stock, taking inventory from roughly $21 million to $10 million. It closed its Christchurch warehouse operations, and quarterly fixed costs fell from $4.9 million in the first quarter to $3.4 million in the fourth.

The segment still posted a full-year adjusted EBITDA loss of $3.3 million, but it turned positive in the fourth quarter. Platform-based sales at Mighty Ape grew 113.6 per cent to $8.7 million. Kogan said further revenue reduction is expected as the rationalisation continues.

Cash Returned and Leadership Changes

Shareholders received $34.9 million during the year, made up of $14.7 million in dividends and $20.2 million in on-market buybacks. The final dividend of 8.0 cents per share is fully franked, taking the total to 16.0 cents, up 14.3 per cent. The record date was 11 September 2026, and payment falls on 30 November 2026. The board intends to continue the buyback.

Chair Greg Ridder and director Harry Debney will retire at the 2026 annual general meeting, with Gary Levin set to succeed Ridder. The board is also considering a revised remuneration package for founder and chief executive Ruslan Kogan, whose previous package expired on 30 June 2026, with arrangements subject to regulatory and shareholder approval.

FY27 Priorities and Key Dates

Management said the group enters FY27 with positive momentum, though the economic environment remains uncertain. July 2026 trading, which is unaudited, showed group gross sales of $88.1 million, up 9.0 per cent, and revenue of $43.8 million, up 6.0 per cent. Kogan.com plans to pursue disciplined products growth, more platform-based sales and AI-driven efficiencies, while Mighty Ape will focus on building sustainable, profitable sales. The annual general meeting is scheduled for 23 November 2026.

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