Highlights

• FY26 revenue reached a record $664.6 million, up 10.6%, while EBITDA climbed 16.6% to $21.9 million.

• Margin optimisation from March 2026 lifted fourth-quarter delivered margin to about 33.5% and run-rate EBITDA margin to roughly 6%.

• Home improvement revenue rose 39% to $58.5 million, while New Zealand generated $3.0 million in eight months.

• The company bought back 3,728,078 shares for about $29.9 million and ended June with $122.7 million cash and no debt.

Sales are softer, but earnings are expected to be stronger. That is the message from Temple & Webster Group Ltd (ASX:TPW), which in August guided to FY27 EBITDA of $33 million to $40 million even though revenue from 1 July to 17 August was down 13% on the prior year. Shares were trading at A$5.43 on 23 October 2026, up 33.42%.

A Record Top Line, a Thinner Bottom Line

The online furniture and homewares retailer finished the year to 30 June 2026 with revenue of $664.6 million, up 10.6% from $600.7 million. EBITDA rose 16.6% to $21.9 million, a 3.3% margin, landing at the top of the range the company gave in May. Underlying EBITDA, which excludes foreign exchange effects and one-off items, was $25.9 million, up 28%.

Below that line, the picture was weaker. Profit before tax fell to $11.9 million from $14.8 million, and profit after tax dropped to $4.3 million from $11.3 million, partly because the company derecognised a deferred tax asset linked to share-based option plans. Gross margin slipped to 31.5% from 33.0% as the retailer invested in price and promotions.

The Margin Reset Behind the Guidance

Management responded to historically low consumer confidence with a margin optimisation program from March 2026. It changed the promotional cadence, repriced the catalogue, secured more supplier support, restructured digital marketing and trimmed fixed costs by about $3 million in the second half compared with the first.

The company said the fourth quarter ran at a delivered margin of about 33.5% and a contribution margin of about 17%, implying an EBITDA margin near 6%. Fixed costs for the year fell to 10.1% of revenue from 10.6%. The trade-off showed up in trading since 1 July: revenue fell 13% against a period that had grown 28%, while contribution margin dollars rose 10%.

Adjacent Businesses and Customers

Beyond core furniture, adjacencies produced $117.2 million of revenue, up 30.3%. Home improvement contributed $58.5 million, and private label penetration there reached 27.5%. Trade and commercial sales grew 16.2% to $55.7 million. New Zealand, launched in October 2025, generated $3.0 million from 7,400 orders and reached contribution margin break-even earlier than expected.

Active customers grew about 5% to roughly 1.3 million, repeat customers made up 62% of orders, and exclusive products accounted for about 51% of revenue. Market share in Australian furniture and homewares rose to 2.9% from 2.7%.

Capital, Leadership and What Comes Next

The company spent about $30 million on buy-backs during FY26 and cancelled all repurchased shares, leaving 116,546,731 shares on issue. Cash stood at $122.7 million with no debt. No dividend was declared.

Leadership changed on 1 July. Co-founder Mark Coulter moved from CEO to Executive Chair, and Susie Sugden, a former executive, became CEO. The company said Sugden would outline strategy at the annual general meeting and at the first-half FY27 results briefing, with the aim of returning the business to double-digit revenue growth while holding the improved unit economics. Management also said longer-term ambitions would be shared in coming months. The FY27 EBITDA range is a target of roughly 50% to 80% above FY26, set against variable market conditions.