Kogan.com (ASX: KGN) – Kogan FY26 Financial Results Presentation

Kogan.com Limited achieved gross sales exceeding $1 billion in FY26 while delivering adjusted earnings before interest, tax, depreciation and amortisation of $41.8 million, representing growth of 12.0% and 13.8% respectively year-on-year. The milestone shows the company’s ability to scale profitably as its core Kogan.com division accelerates earnings faster than revenue growth.

The real strength sits in Kogan.com’s performance, where revenue climbed 16.2% to $425.2 million and adjusted EBITDA expanded 22.4% to $45.1 million. This earnings outperformance reflects two structural shifts. First, gross margin improved 80 basis points to 43.5% as the company shifted toward higher-margin exclusive brands and marketplace commission revenue. Second, the company deployed artificial intelligence across customer service, logistics, purchasing and marketing, improving operational efficiency enough to offset higher marketing spend. Fixed costs grew 7.8% while revenue grew 16.2%, demonstrating operating leverage in action.

Mighty Ape, the New Zealand ecommerce platform acquired in 2022, produced its first positive adjusted EBITDA quarter since early 2024. The turnaround reflects a deliberate reset: the company shifted fixed costs down 12.9% through workforce restructuring and application rationalisation, reduced inventory from $21 million to $10 million by clearing slow-moving stock, and migrated to a new platform architecture that now supports third-party sellers on commission. Fourth quarter adjusted EBITDA reached $0.4 million, offering management encouraging evidence the operational reset is working. Still, full-year Mighty Ape revenue fell 29.9% to $85.6 million, indicating the turnaround remains in early stages.

Platform-based sales, defined as marketplaces, loyalty subscriptions, verticals and advertising, now generate 62% of group gross profit compared to 59% a year earlier. These divisions carry minimal working capital, scale without proportional cost increases, and offer recurring revenue through subscriptions. Management aspires to grow adjusted EBITDA margins toward 12% in the medium term and above 20% long-term by deepening this mix.

The balance sheet remains unlevered with $36.4 million in cash and no external debt. Management returned $34.9 million to shareholders through dividends and buybacks, while free cash flow grew 18.2% to $38.3 million. The final dividend of 8.0 cents per share, fully franked, brought total FY26 dividends to 16.0 cents, up 14% year-on-year.

Kogan commenced FY27 with Kogan.com gross sales up 12.8% in July, though management acknowledged the broader economy remains uncertain. The company reaffirmed its medium-term margin guidance of progressing toward 12% adjusted EBITDA margins. Investors should monitor Mighty Ape’s ability to sustain profitability as inventory normalises, platform-based sales penetration in both divisions, and whether AI-driven efficiencies continue offsetting higher marketing investment.

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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