Key Highlights

  • FY26 revenue was $665 million, up 11%, with EBITDA of $21.9 million and underlying EBITDA of $25.9 million, up 28%.
  • Cash ended the year at $123 million after $30 million was returned through the on-market buy-back.
  • From 1 July to 19 October 2026, revenue is down 8% while contribution margin dollars are up 16%.
  • FY27 EBITDA guidance of $33 million to $40 million is maintained, an increase of approximately 50 to 80% on FY26.

Temple & Webster Group Limited (ASX:TPW), which describes itself as Australia's leading online retailer of furniture and homewares, has released the Chair and CEO addresses delivered at its 2026 Annual General Meeting. The addresses review FY26 results, explain a change in leadership and set out a refreshed strategy built around brand, product, customer experience, operations and scale.

Susie Sugden joined as Chief Executive Officer on 1 July 2026, returning to the company after serving as Chief Commercial Officer and Chief Marketing Officer from 2016 to 2020. The Chair moved into the role of Executive Chair, and Stephen Heath, previously Chair for ten years, became Lead Independent Director.

FY26 Financial Performance

Revenue for FY26 reached $665 million, up 11% on the prior year, and the company's share of the Australian furniture and homewares market rose from 2.7% to 2.9%. Growth came mainly in the first half, with less favourable trading conditions in the second half.

EBITDA was $21.9 million, up 17%, a margin of 3.3%. Excluding one-off costs and unrealised foreign exchange losses, underlying EBITDA was $25.9 million, up 28%, with the margin improving 53 basis points to 3.9%. The result was in line with guidance.

Operating cash flow was $24 million, and the company ended the year with $123 million in cash after returning $30 million to shareholders through its on-market buy-back. Since 2023 the program has returned over $70 million. Capital priorities remain investment in organic growth, technology and AI, assessment of M&A opportunities and repurchasing shares where value is seen.

Board governance changed alongside the leadership shift. Following advice from an independent governance expert, the Board Charter and the Nomination & Remuneration Committee Charter were updated to define the roles of the Executive Chair, Lead Independent Director and CEO, and the Board retains a majority of independent directors.

Strategy and Test Results

Ms Sugden said the company will focus on the mass to mid market, reduce entry level ranges over time and take a more disciplined approach to discounting. The stated aim is a return to double-digit growth from FY28. The company puts the market opportunity at around $40 billion across furniture, homewares and home improvement, with its share currently below 3%.

A refreshed brand campaign launched in Brisbane in July split investment roughly 50/50 between brand and performance marketing, compared with a previous 80-90% performance weighting. The Brisbane metro area recorded an 11% uplift in traffic, a 7% uplift in revenue relative to control markets and a 14% increase in share of branded Google search, while unprompted brand awareness rose two percentage points over two months. The campaign will be rolled out in additional markets including Sydney and Melbourne.

In a private label test, approximately 200 entry-level manchester SKUs were replaced with a higher-quality range using Australian-sourced fabrics. The program produced an 8% uplift in revenue, a fivefold increase in private label penetration and 11% higher delivered margin, and has moved to rollout across the full catalogue. Two internal appointees now serve as Chief Product and Sourcing Officer and Chief Commercial Officer.

AI Programs and Cost Base

Five AI-led personalisation programs have been launched or are in testing across paid media, product pages, checkout and email. Tailored shipping pricing at checkout delivered a $1.2 million annualised uplift in delivered margin with no impact on revenue or conversion. Personalised complementary product recommendations lifted conversion on displayed items by 56%, and personalised email recommendations increased website traffic by 12%.

Fixed costs have fallen from 12% to 10% of revenue over three years. AI-based workflows have reduced damage and defect rates, contributing to a 20% year-on-year reduction in damaged in transit and other incidents. In New Zealand, the company is running its first AI-led market with an agentic team supervised by humans.

Where the Numbers Leave the Company

For 1 July to 19 October 2026, revenue is down 8% on the prior corresponding period while contribution margin dollars are up 16%, a result the company links to reduced promotional depth and higher prices on some ranges. Run-rate revenue growth since the August update is -4%, compared with -13% at that update.

From mid-February the company begins to cycle periods with similar promotional depth, and it remains on track for FY27 EBITDA of $33 million to $40 million, with the growth initiatives funded within that range.