Kogan returns to profit as Group Gross Sales top $1 billion in FY26
In its FY26 results presentation, released 24 August 2026, Kogan.com Ltd reported a return to statutory profitability alongside Group Gross Sales crossing the $1 billion threshold for the 12 months ended 30 June 2026.
Group Gross Sales reached $1,042.3m, up 12.0%, while Group Adjusted EBITDA lifted 13.8% to $41.8m. The Group recorded net profit after tax (NPAT) of $11.2m, reversing the $(39.5)m net loss booked in FY25.
Management framed the year around a two-part narrative: Kogan.com delivering profitable growth, while Mighty Ape’s operational reset began to show early evidence of a turnaround.
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FY26 headline results: profit restored, margins expanding
The Group’s completed-year scorecard showed growth flowing through to the bottom line. Revenue rose 4.6% to $510.7m, Gross Profit climbed 11.1% to $210.9m, and Gross Margin expanded 2.4 percentage points to 41.3%.
The prior-year loss included a $46.3m goodwill impairment.
The Group ended the period with $36.4m cash and no external debt, having returned $34.9m of capital to shareholders during the year.
| Metric | FY25 | FY26 | YoY |
|---|---|---|---|
| Gross Sales | $930.9m | $1,042.3m | +12.0% |
| Revenue | $488.1m | $510.7m | +4.6% |
| Gross Profit | $189.9m | $210.9m | +11.1% |
| Gross Margin | 38.9% | 41.3% | +2.4pp |
| Profit/(Loss) before tax | $(32.9)m | $18.7m | n/m |
| NPAT | $(39.5)m | $11.2m | n/m |
Kogan.com: revenue growing, margins expanding, earnings compounding
Management positioned Kogan.com as the Group’s profit engine, with a clear operating-leverage story. The core business delivered Revenue of $425.2m (+16.2%), Gross Profit of $184.8m (+18.4%), and Adjusted EBITDA of $45.1m (+22.4%).
The presentation described this as a “growth cascade,” where each metric accelerated further down the P&L:
- Revenue: +16.2%
- Gross Profit: +18.4%
- Adjusted EBITDA: +22.4%
- Adjusted EBIT: +30.3%
Margin expansion underpinned the result. Gross Margin rose 0.8 percentage points to 43.5%, attributed to improved sourcing and continued growth of higher-margin Platform-based Sales. Fixed costs as a share of revenue fell to 12.8% (-1.0pp), with revenue growing roughly twice as fast as fixed costs.
The outcome illustrates operating leverage in practice: each additional dollar of revenue converts to a greater share of profit as the fixed cost base is spread more efficiently.
Mighty Ape’s reset begins to deliver
Management framed Mighty Ape as an in-progress turnaround, presenting encouraging early evidence rather than a completed recovery. The standout data point was a 4QFY26 positive Adjusted EBITDA of $0.4m, its first Adjusted EBITDA-positive quarter since 2QFY25.
The full-year picture reflects a deliberate reset. Mighty Ape Revenue fell 29.9% to $85.6m, and full-year Adjusted EBITDA was $(3.3)m, as the business cleared slow-moving stock and restructured its cost base.
Quarterly progress showed the trajectory:
- Gross Margin expanded from 23.4% in 1Q to 39.0% in 4Q, a lift of 15.6 percentage points
- Fixed Costs fell from $4.9m in 1Q to $3.4m in 4Q, down 30.8%
The reset was executed through several milestones:
- The One Global Team & Strategy restructure (January 2026)
- Inventory cleansed from $21m to $10m by 30 June 2026
- Christchurch warehouse closure (May 2026)
Understanding Platform-based Sales: why the model matters
A recurring theme across the presentation was the growing contribution of Platform-based Sales. Per the Group’s definition, Platform-based Sales refers to sales generated by Marketplaces, Loyalty Subscriptions, Verticals and Advertising & Other Income, and excludes the physical Products divisions.
Why does this matter to investors? Platform-based revenue typically requires minimal working capital and carries little inventory risk. It tends to command higher margins and includes recurring subscription income through Kogan FIRST, characteristics that support scalable profitability.
In FY26, 61% of Group Gross Profit was generated from capital-light Platform-based Sales, up from 59% in FY25. A broader 73% came from Exclusive Products and Services, being products and services only Kogan Group can offer.
Balance sheet strength and returns to shareholders
The Group reported a strong capital position with consistent shareholder returns. It held $36.4m cash with no external debt and generated Free Cash Flow of $38.3m, up 18.2%.
Capital returned to shareholders totalled $34.9m, comprising $14.7m in dividends and $20.2m in on-market share buy-backs. The Board declared a final dividend of 8.0 cents per share, fully franked, taking FY26 total dividends to 16.0cps (+14%), fully franked, versus a partially franked 14.0cps in FY25.
Net Assets declined to $34.4m from $53.9m.
The presentation highlighted “Kogan.com delivers strong profitable growth; Mighty Ape’s reset begins to deliver” as a key FY26 result.
Key dividend dates outlined in the presentation:
- Record date: Friday, 11 September 2026
- DRP Election date: Monday, 14 September 2026
- Payment date: Monday, 30 November 2026
- DRP priced at a 2.5% discount to the 5-day VWAP over the trading days from 4 September 2026 to 10 September 2026 (inclusive)
AI embedded across the operating model
Management detailed how artificial intelligence is being applied across the operating model to drive the efficiency gains reflected in the margins. Applications and their intended outcomes included:
- Customer Care: automated handling and triage, lowering cost to serve
- Logistics: inventory forecasting and delivery optimisation, targeting faster delivery and lower inventory cost
- Purchasing: pricing and market intelligence, aimed at improved gross margins
- Engineering: AI-assisted development and testing, enabling faster feature development
- Marketing: AI-generated creative and targeting, supporting higher returns on marketing
- Finance: automated reconciliations and reporting, reducing back-office costs
These efficiency initiatives connect directly to the operating-leverage story, helping revenue grow faster than the fixed cost base.
FY27 outlook and Group margin aspirations
Management outlined forward priorities for FY27 while confirming that all FY26 priorities had been achieved. A July 2026 unaudited trading update showed:
- Group Gross Sales of $88.1m, up 9.0%
- Kogan.com Gross Sales of $79.5m, up 12.8%
- Mighty Ape Gross Sales of $8.6m, down 17.1%
The Group set out its FY27 focus areas:
- Grow Kogan.com earnings through higher-margin Product Sales, growing Platform-based Sales and AI-driven efficiencies
- Continue the Mighty Ape operational reset, with a focus on profitability
- Maintain disciplined capital returns through dividends and the on-market buy-back
- Reaffirm previous guidance of progressively growing Group Adjusted EBITDA margin towards 12% in the medium term
Management reiterated the note that broader economic conditions remain uncertain and continue to evolve, while positioning the Group to build on FY26 progress.
| Segment | FY25 Adj. EBITDA Margin | FY26 Adj. EBITDA Margin | Medium-term | Long-term |
|---|---|---|---|---|
| Platform-based Sales | ~50% | ~51% | 50% to 55% | >65% |
| Group Product Sales | ~(4%) | ~(6%) | (3%) to (1%) | 0% |
| Kogan Group | 7.5% | 8.2% | 8% to 12% | >20% |
The FY26 presentation set out a balanced picture: a profitable, cash-generative and capital-light core in Kogan.com, alongside an improving Mighty Ape turnaround still working through its reset. Underpinned by disciplined capital returns and a stated medium-term margin roadmap toward 12%, management positioned the Group to build on the progress achieved during the year.
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