Temple & Webster AGM outlines path to $33–40m FY27 EBITDA
In its FY26 AGM presentation on 23 October 2026, Temple & Webster outlined a target of $33–40m EBITDA for FY27, an increase of approximately 50–80% over FY26. Management also detailed a shift towards the mass-mid market and a greater emphasis on AI.
The company highlighted FY26 revenue of $665m (+11% on pcp), EBITDA of $21.9m (+17%) and a cash balance of $123m as at 30 June 2026, after a $30m share buy-back. Excluding significant items and unrealised foreign exchange losses, EBITDA was $25.9m (+28% vs pcp).
CEO Susie Sugden, Executive Summary
“Our goal now is to deliver strong and sustainable top-line and bottom-line growth, which will lead to superior shareholder returns”
| FY26 metric | Result | Change vs pcp |
|---|---|---|
| Revenue | $665m | +11% |
| EBITDA | $21.9m | +17% |
| Adjusted EBITDA | $25.9m | +28% |
| Cash (30 June 2026) | $123m | After $30m share buy-back |
Revenue growth is based on accounting revenue, which includes deferred revenue and refund provision. FY25 is referred to as the pcp (prior corresponding period).
Management stated that the company’s growth initiatives are funded within the FY27 guidance range and are now moving from testing to roll-out.
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Board changes and a mass-mid market pivot
New leadership structure from 1 July 2026
The new Board structure took effect on 1 July 2026, alongside the appointment of Susie Sugden as Chief Executive Officer. It was announced in April 2026.
Mark Coulter moved from Chief Executive Officer and Managing Director to Executive Chair. Stephen Heath moved from Chair to Lead Independent Director. Conrad Yiu moved from Deputy Chair to NED and was appointed Chair of the newly formed Technology Committee.
The company sought external advice from a corporate governance expert on the revised structure, governance principles and independence. The Board Charter and Nomination and Remuneration Charter were amended to define the respective responsibilities of the Executive Chair, Lead Independent Director and CEO.
Prioritising the mass-mid market
Management outlined a strategic decision to prioritise the mass-mid market customer and reduce entry-level ranges over time. It noted that market segments outside the entry level are the largest by revenue and hold over 75% of the profit in the industry.
The company is also taking a more disciplined approach to discounting. The stated focus is a return to sustainable double-digit revenue growth from FY28, while maintaining improved unit economics.
How AI and brand investment are driving the strategy
AI explained for investors
Agentic AI refers to AI systems, or “agents”, that carry out tasks such as analysis or coding with limited human input. AI-led personalisation means using customer data to tailor what each shopper sees, such as product recommendations or delivery offers.
Management presented three AI levers: AI-led customer journeys, AI-led workflows and AI-led marketing. It described its digitally-native model as giving it an edge as AI usage expands, and cited an asset-light, lower cost-to-serve model.
Fixed costs fell from 12% to 10% of revenue over the last three years, which include AI-driven savings during FY26. Fixed costs include wages, other and share-based payments expenses.
Results presented since 1 July included:
- +56% conversion rate on AI-powered complementary product recommendations
- ~$1.2m annualised delivered margin benefit from tailored delivery cost, with no reduction in conversion
- +12% traffic from personalised product recommendations in email
- ~58,000 product pages republished so major AI assistants can read and recommend the range
- 78% of SKUs flagged by the internal agent show lower damage rates vs previously
Test results supporting the roll-out
The company presented interim results from its brand campaign and private label tests as support for national roll-out.
| Initiative | Result | Test basis |
|---|---|---|
| Brisbane brand campaign | +11% traffic; +7% revenue | Vs control markets of Adelaide and Melbourne, measured through 30 September 2026 |
| Brisbane brand campaign | +14% branded search share | Google Brand Dashboard (September 2026), Queensland vs all other Australian states and territories |
| Linen private label | 5x private label penetration; +8% revenue | September 2026 vs June and July 2026 baseline |
| Linen private label | +11% year-on-year increase in delivered margin | September 2026 vs June and July 2026 baseline |
The linen test categories included quilt covers, sheets and pillowcases. The brand campaign is now live in Sydney and Melbourne.
Management set a goal of growing private label share to >35% of revenue. Exclusive products already account for over 50% of revenue.
New Zealand as an AI-led test
Management described New Zealand as its first test of an AI-led market. It started building a customised New Zealand storefront with AI agents, with a 5x efficiency improvement.
The target is contribution margin break-even in under 9 months from launch. Growth adjacencies generated $117m in revenue in FY26.
Market opportunity, trading update and capital position
A $40b+ addressable market
Management described Temple & Webster as early in its journey across a $40b+ addressable market. This comprises Australian furniture and homewares at $19b, Australian home improvement at $18b and New Zealand at $3b.
The presentation stated that online penetration in Australia and New Zealand trails global markets by 5 to 7 years:
- New Zealand: 16%
- Australia: 20%
- United Kingdom: 29%
- United States: 35%
Current trading and outlook
Financial year-to-date revenue is down 8% vs pcp, while contribution margin dollars are up 16% over the same period. The revenue figure is based on checkout revenue for 1 July to 19 October 2026, which is pre-accounting adjustments and differs from the FY26 accounting revenue basis above.
Management said this implies revenue was down 4% in the period since the 18 August trading update. From late February 2027, the company begins to compare periods with a similar promotional depth and intensity, and management stated it should return to growth at that point.
Management said it remains on track for FY27 EBITDA of $33–40m.
Balance sheet and capital returns
The company reported a debt-free balance sheet and positive operating and free cash flow. Over $70m has been returned to shareholders since 2023 (12.4m shares cancelled), measured up until 16 October 2026.
Its five capital management priorities are:
- Maintain appropriate liquidity buffers for different operating environments
- Invest in profitable organic growth to drive market share gains
- Invest to maintain competitive advantages in technology, AI and innovation
- Identify and pursue strategically relevant and accretive M&A opportunities
- Return surplus capital to shareholders via share buy-back and other means over the longer term
Management closed by stating that, with improving unit economics and a strong balance sheet, it remains focused on becoming the largest retailer in its category in Australia.
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