The Kogan Group has crossed the $1 billion gross sales threshold in FY26, demonstrating how the company’s core e-commerce platform is scaling while its operational turnaround initiatives gain traction. This milestone reflects 16 percent growth in gross sales at Kogan.com itself, with revenue climbing to $425.2 million and adjusted EBITDA accelerating 22 percent to $45.1 million.
What sets this result apart is not merely the top-line growth but the consistent margin expansion underpinning it. Kogan.com’s gross margin expanded 80 basis points to 43.5 percent, while adjusted EBITDA margin rose to 10.6 percent from 10.1 percent. This combination of faster earnings growth outpacing revenue growth signals that the business is translating volume gains into genuine profitability improvement rather than sacrificing returns for market share.
The company attributes this operating leverage to AI-driven processes and automation introduced across its operations. Fixed costs as a percentage of revenue fell to 12.8 percent from 13.8 percent, growing at roughly half the rate of revenue itself. Kogan.com responded to this efficiency gain by increasing marketing investment to drive further growth, creating a cycle where cost discipline funds expansion initiatives rather than constraining them.
Mighty Ape, the company’s New Zealand subsidiary undergoing an operational reset, achieved positive adjusted EBITDA in the fourth quarter of FY26 after rationalising inventory and simplifying costs. The subsidiary reduced quarterly fixed costs from $4.9 million in the first quarter to $3.4 million by year-end, validating the group-wide approach. The group generated $41.9 million in operating cash flow, up 12.5 percent, and $38.3 million in free cash flow, up 18.2 percent, with cash balances reaching $36.4 million and no external debt.
The company returned $34.9 million to shareholders through dividends and share buybacks, with the final dividend increased to 8.0 cents per share fully franked. For investors, the key question is whether Kogan can sustain this momentum into FY27. Watch for inventory trends at Mighty Ape to confirm durability of the operational reset, and whether Kogan.com can extend margin gains as competitive pressures and freight cost dynamics evolve. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
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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