Australia’s largest online furniture and homewares retailer, Temple & Webster Group (ASX: TPW), reported record FY26 financial results on Wednesday, though its shares fell sharply after the company flagged a softer-than-expected start to FY27.
Revenue rose 11% year-over-year to $665 million, while EBITDA increased 17% to $21.9 million. Adjusted EBITDA, excluding start-up costs in New Zealand, warehouse transfer expenses and foreign exchange losses, reached $25.9 million, a 28% increase and equivalent to a 3.9% margin. Operating cash flow totaled $23.9 million, fully converting EBITDA, with the company ending the year with $122.7 million in cash and no debt. Capital expenditure rose to $5.4 million, primarily for warehouse fit-outs in Melbourne.
Customer metrics showed steady growth, with active customers increasing 5% to 1.866 million. Revenue per active customer climbed 8% to $494, while repeat orders accounted for 62% of total orders, up from 59% in FY25. Exclusive products now represent 51% of revenue, up from 45% the prior year, and AI-led automation delivered $3 million in savings in the second half of FY26.
Adjacent growth initiatives contributed over $100 million in annual revenue, including $58.5 million from home improvement, $55.7 million from trade and commercial, and $3 million from New Zealand operations, which achieved contribution margin breakeven within eight months. The company’s total addressable market exceeds $40 billion across Australia and New Zealand.
Shares fell 16.63% to $4.21 following the presentation, near a 52-week low, after management highlighted a 13% year-to-date revenue decline in FY27. Contribution margin dollars, however, rose 10% during the same period. EBITDA guidance for FY27 was raised to $33-40 million, representing a 50-80% increase over FY26, with expected delivered margins of 31-33% and EBITDA margins of 5-6%. Depreciation and amortization is forecast at $13-14 million, with capital expenditure expected to reach $5-7 million.
CEO Susie Sugden emphasized the company’s focus on core growth despite a challenging consumer environment, stating that Temple & Webster is not building its strategy around macroeconomic conditions. The long-term target remains to become Australia’s largest retailer in the category, representing over $2 billion in revenue.
