Temple & Webster delivered record full-year revenue of $665 million in FY26, representing growth of 11 percent against a backdrop of weaker consumer spending across Australia. The result speaks to the company’s ability to gain market share and improve its operational efficiency, with underlying EBITDA (excluding foreign exchange impacts and one-off costs) climbing 28 percent to $25.9 million. Recorded EBITDA of $21.9 million translates to a 3.3 percent margin, up from 3.4 percent in the prior year, suggesting the business is moving in the right direction on profitability despite topline headwinds.
The margin expansion is particularly noteworthy given the competitive pressures evident in online furniture retail. Fixed costs as a percentage of revenue contracted to 10.1 percent from 10.6 percent, indicating the company has successfully reduced overhead while growing the top line. Revenue per active customer increased to $494, up 8 percent year-over-year, pointing to higher basket sizes and stronger purchasing patterns among the approximately 1.3 million active customers on the platform. The shift toward repeat customers, which now account for 62 percent of orders compared to 59 percent previously, suggests improving unit economics and customer loyalty in a category where retention typically remains challenging.
A critical driver of Temple & Webster’s margin improvement has been the expansion of exclusive products, which now represent 51 percent of total revenue, up from 45 percent in the prior year. Exclusive lines and adjacent businesses, including home improvement and trade and commercial offerings, contributed over $117 million in revenue for the year, a 30 percent increase on the prior period. The home improvement segment alone grew 39 percent to $59 million, demonstrating the successful diversification beyond furniture and providing the group with less commoditized revenue streams that typically carry better margins.
What makes FY26 particularly significant is the forward guidance provided by Temple & Webster. The company is targeting FY27 EBITDA of between $33 million and $40 million, representing growth of 50 to 80 percent from FY26. This ambitious guidance assumes the company can return to double-digit top-line growth, a topic incoming CEO Susie Sugden is expected to address in detail at the upcoming annual general meeting and half-year results briefing. The magnitude of this guidance increase suggests management has conviction in its strategic priorities, including the expansion of exclusive products, international roll-out (New Zealand launched in October 2025 and generated $3 million in revenue), and operational leverage from the margin initiatives already underway.
Investors should monitor the company’s progress toward these targets closely. The cash position declined to $122.7 million from $144.3 million, largely reflecting the investments in New Zealand and warehouse infrastructure. The real test will be whether Temple & Webster can deliver the promised top-line acceleration while maintaining its improved cost structure. The appointment of a new CEO and the detailed strategy to be shared at the AGM will be critical signposts. This announcement has been flagged as price sensitive and is deemed material by the ASX.
View the full ASX announcement (PDF)
About Temple & Webster Group Limited (ASX: TPW)
Temple & Webster Group Limited is a pure play online retailer of furniture, homewares, and home improvement products operating through its online platform in Australia. The company operates a drop-shipping model complemented by private label ranges, offering over 200,000 products from hundreds of suppliers. It also provides procurement, styling, specialized delivery, and installation services through its Trade & Commercial division.
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