Kogan.com Limited has delivered a decisive profit turnaround for FY26, swinging from a loss of $39.5 million in the prior year to a profit after tax of $11.2 million, a $50.6 million improvement. This result marks a significant milestone in the company’s transformation strategy, particularly following the substantial goodwill write-down that dragged FY25 to a loss. Revenue growth of 4.6 percent to $510.7 million underpins the profit improvement, but the real story lies in improving operational leverage and the scalability of the company’s capital-light model.
The profit recovery reflects strong progress across Kogan.com’s diversified revenue streams. Kogan.com’s core division delivered 16.2 percent revenue growth to $425.2 million, driven by expansion across product sales and platform-based services including marketplace, loyalty, and advertising. Within this, Kogan Products revenue increased 18.0 percent to $304.6 million while gross profit surged 33.4 percent to $64.3 million, demonstrating that the business is capturing margin expansion as well as volume growth. The platform-based sales division, representing capital-light recurring revenue, grew 11.7 percent to $120.5 million. Notably, marketplace revenue climbed 20.3 percent to $35.4 million and the FIRST loyalty program reached $57.0 million in revenue, up 11 percent year-on-year.
The margin improvement across product sales signals meaningful operational discipline. Gross margin expanded 2.4 percentage points to 21.1 percent through improved sales mix, sourcing negotiations, and supplier leverage. This mirrors the company’s broader cost management approach. Mighty Ape, the turnaround story within the group, returned to positive adjusted EBITDA in the final quarter after two years of operational reset, thanks to a streamlined cost base, improved inventory quality, and growth in high-margin platform businesses including Mighty Mobile and the PRIMATE loyalty program.
Kogan.com’s balance sheet remains strong, with $36.4 million in cash and no external debt, positioning the company to self-fund growth. The company returned $33.2 million to shareholders through $20.2 million in share buy-backs and $13.0 million in dividends, signaling confidence in both current performance and future cash generation. Inventory stands at $77.9 million, with the split between in-warehouse and in-transit stock appropriate for supporting anticipated growth.
Investors should monitor whether the platform-based sales momentum can sustain its double-digit growth trajectory, particularly given the company’s shift toward a capital-light, recurring revenue model. The sustainability of Mighty Ape’s positive EBITDA in quarters ahead will be critical to validating the turnaround thesis. Margin expansion in core products also merits attention, as sourcing gains and improved mix will be difficult to repeat if cost pressures re-emerge. This announcement has been flagged as price sensitive and material by the ASX.
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About Kogan.com Limited (ASX: KGN)
Kogan.com Limited is an Australian online retailer that sells consumer electronics, appliances, homewares, furniture, gaming products, and other goods through its website and marketplace platform. The company also operates multiple brands including Dick Smith, Matt Blatt, Mighty Ape, and Brosa across retail and services segments. In addition to retail, Kogan provides services such as mobile phone plans, internet, insurance products, energy, and travel services to Australian customers.
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