Temple & Webster delivered record FY26 revenue of $665 million, up 11% from the prior year, while posting FY26 EBITDA of $21.9 million representing 17% growth despite acknowledged challenging consumer conditions. The result underscores how the online homewares and furniture retailer has managed to scale the business while simultaneously improving operational efficiency, a combination that becomes increasingly valuable as market conditions remain volatile.
The improvement in unit economics provides perhaps the most compelling insight into the company’s progress. Revenue per active customer climbed 8% to $494, while customer acquisition costs stabilised at $101, down from $106 in the first half. Repeat customer orders now represent 62% of total orders, up from 59% a year earlier, signalling the business has shifted successfully toward a stickier customer base that requires less marketing spend to retain. Simultaneously, the active customer base grew 5% to 1.33 million customers, suggesting Temple & Webster is achieving growth without sacrificing profitability for customer acquisition.
The company’s FY27 guidance carries particular significance. Management is targeting EBITDA of $33 million to $40 million, representing 50% to 80% growth over FY26. That range indicates either confidence in its ability to convert higher revenue into earnings or flexibility in the business model to respond to changing conditions. The presentation notes that exclusive product lines and growth adjacencies now contribute well over $100 million in annual revenue, suggesting diversification away from core furniture is working and providing margin opportunities. A $123 million cash balance as at 30 June, maintained even after a $30 million share buyback, provides capacity to invest in growth initiatives or manage through softer trading periods.
The announcement also serves as an introduction to new Chief Executive Officer Susie Sugden, who is tasked with returning the business to double-digit top-line growth. Management has flagged that more specific strategic details will emerge at the upcoming annual general meeting and first-half FY27 results briefing. Investors will be watching closely to understand how the company intends to reaccelerate revenue growth from the current 11%, particularly in a consumer environment that Temple & Webster itself characterised as challenging.
The near-term focus will be whether Temple & Webster can deliver on its FY27 EBITDA guidance and maintain the momentum in repeat customer orders and revenue per customer. The stabilisation of marketing return on investment in recent quarters and the successful implementation of revised digital bidding strategies suggest the company has the operational levers to improve returns. This announcement is price sensitive and has been flagged as 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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