Koala reports record FY26 revenue of $332.3M as EBITDA more than doubles
In its FY26 results presentation delivered on 26 August 2026, The Koala Company reported group revenue of $332.3M, up 20.1% in reported AUD and 24.4% in constant currency, marking its first full-year result since listing via IPO in March 2026.
Management outlined a Pro Forma EBITDA of $27.9M, up 139.2% on FY25 and ahead of the $24.8M prospectus forecast. The business ended the year debt-free with $71.2M in net cash.
Key FY26 headline metrics reported by the company include:
- Group revenue of $332.3M
- Gross margin of 65.3%, equal to $216.9M
- Contribution margin of 26.5%, equal to $88.0M
- Pro Forma EBITDA margin of 8.4%, equal to $27.9M
Beating the prospectus forecast in its first year as a listed company represents an early credibility marker for a business still building its track record with public investors.
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A milestone year across three geographies
Koala operates across Australia, Japan and the United States, with a UK market entered during FY26. Management highlighted that 50% of FY26 revenue was generated outside Australia, reflecting the increasing diversification of the group.
Australia, Japan and USA performance snapshot
The Australian market delivered revenue of $166.7M, up 10.7%, with contribution margin expanding to 29.8%. Japan reported $89.4M in revenue, up 23.5% in local currency, with contribution margin of 28.6% in its eighth year of operation.
The USA, in its third year, scaled rapidly with revenue of $74.9M, up 67.6% in local currency. The UK entry contributed $1.2M of revenue, which management positioned as evidence of the repeatability of Koala’s capital-light international expansion model.
| Market | Revenue | Growth | Gross Margin | Contribution Margin |
|---|---|---|---|---|
| Australia | $166.7M | +10.7% | 61.8% | 29.8% |
| Japan | $89.4M | +23.5% (local) | 68.1% | 28.6% |
| USA | $74.9M | +67.6% (local) | 69.8% | 17.3% |
| Group | $332.3M | +20.1% | 65.3% | 26.5% |
Product innovation driving the momentum
Management detailed a series of FY26 product launches and brand initiatives that supported growth across markets:
- Torquay and Tamarama modular sofas
- Koala Sofa Bed (4th Gen)
- Wanda Bed (2nd Gen)
- Aoyama flagship showroom in Tokyo
- The Koala x Bluey Playtime Collection
Understanding Koala’s capital-light operating model
Koala designs and develops 100% of its products in-house but shares products, technology and global capabilities across markets rather than building heavy physical infrastructure in each country. This is what the company describes as a “capital-light” model.
The significance for investors is operating leverage. As revenue scales across shared capabilities, operating costs fall as a proportion of revenue, which expands margins.
The presentation detailed how this played out over recent years:
- OPEX fell from 21.4% of revenue in FY24 to 18.1% in FY26, while revenue grew approximately 71% since the FY24 restructure
- Three competitive advantages underpin the model: product innovation, marketing leverage and capital-light growth
- A total addressable sitting and mattress market of $52B across current markets
This operating leverage helps explain how the Pro Forma EBITDA margin more than doubled to 8.4% in FY26, as scale translated directly into profitability.
Financial results show margin expansion and a balance sheet turnaround
CFO Stuart Crichton outlined the Pro Forma profit and loss progression, which showed margin expansion at every level. Gross margin expanded 2.9 percentage points to 65.3%, contribution margin rose 2.2 percentage points to 26.5%, and EBITDA margin increased 4.2 percentage points to 8.4%.
| $M (Pro Forma) | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue | 276.7 | 332.3 | +20.1% |
| Gross Margin | 172.6 | 216.9 | +25.7% |
| Contribution Margin | 67.1 | 88.0 | +31.2% |
| EBITDA | 11.7 | 27.9 | +139.2% |
| EBIT | 7.2 | 22.9 | +218.1% |
Debt cleared and net cash strengthened
The balance sheet transformation was a defining feature of the result, with the company returning to a stronger net asset position:
- Net assets improved by $48.0M to $38.1M, from negative $9.9M in FY25
- IPO equity proceeds assisted with clearing borrowings to zero
- $28.6M in cash from operations (net of lease liabilities) was generated, after approximately $8M of one-off IPO-related transaction costs paid in cash during the year
- Koala ended FY26 with $71.2M in net cash
FY27 trading update points to continued momentum
Management provided a forward trading update covering the approximately eight weeks to 23 August 2026. Ordered revenue grew 27% year-on-year in constant currency, equivalent to 20% in reported AUD, over that period.
International sales represented 60% of group revenue during the trading period, underscoring the increasing scale of Koala’s markets outside Australia. Management referenced the global Koala x Pantone collaboration, which introduced “Australia 01”, an exclusive colour inspired by the Australian landscape.
The company noted that its balance sheet strength provides flexibility to invest in growth opportunities and a pathway to dividends, which management flagged as a forward consideration.
Note on management positioning
The source presentation does not contain a verbatim CEO quote. The following paraphrases management’s stated positioning: CEO Dany Milham outlined that Koala has carried strong business momentum into FY27, continuing to execute its growth strategy across all markets while demonstrating the strength and resilience of its global business model.
What FY26 means for the Koala investment case
FY26 combined several elements relevant to the investment case: a result ahead of the prospectus forecast, an EBITDA margin that more than doubled, and a debt-free balance sheet supporting a stated pathway to dividends. The performance across four markets, including the UK launch, was positioned by management as proof of a repeatable international expansion model.
Management set out four strategic priorities for FY27 and beyond:
- Strengthen the core range through the product innovation cycle
- Expand the sitting furniture range, including modular sofas and sofa beds
- Expand into new global markets, driving further penetration of the $8B UK market and exploring entry into Canada and priority European markets, representing a further $17.6B opportunity under exploration
- Strengthen brand equity and marketing leverage across existing and new markets
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