Australia’s largest online furniture and homewares retailer Temple & Webster (ASX: TPW) reported record annual revenue of A$665 million for the year ended June 30, 2026, up 11% from the prior year. The company’s underlying EBITDA rose 28% to A$25.9 million, while reported EBITDA increased 17% to A$21.9 million, reflecting a 3.9% margin versus 3.3% in FY25.
Net profit after tax declined 62% to A$4.3 million, primarily due to a A$7.6 million income tax expense and A$12.9 million in depreciation and amortization. Operating cash flow totaled A$23.9 million, with a cash conversion rate exceeding 100% of EBITDA. The company maintained a zero-debt balance sheet, though its cash position decreased from A$144.3 million to A$122.7 million over the year, and net assets declined to A$105.6 million.
CEO Susie Sugden highlighted the company’s focus on balancing growth with profitability, stating that "growth is in our DNA" even as near-term conditions tighten. Active customers grew 5% to 1.33 million, with repeat orders accounting for 62% of total orders, up from 59% in FY25. Revenue per active customer rose 8% to A$494, while marketing ROI remained steady at 1.4x.
The company’s home improvement segment delivered A$59 million in revenue, a 39% increase year-over-year, driven by private label expansion that now accounts for 28% of sales, up from 19% in FY25. Trade and commercial revenue reached A$56 million, up 16%. New Zealand operations, launched in October 2025, generated A$3 million in revenue over the first eight months, achieving contribution margin breakeven with an average order value of A$401.
For FY27, Temple & Webster set an EBITDA target of A$33 million to A$40 million, representing a 50% to 80% increase over FY26. The company guided for a delivered margin of 31% to 33%, marketing costs around 15% of revenue, and an EBITDA margin of 5% to 6%. However, year-to-date trading through August 17, 2026, showed a 13% decline in revenue compared to the same period last year, though contribution margin dollars rose 10%.
Shares of Temple & Webster fell 16.63% to A$4.21, nearing the 52-week low of A$4.12, as investors reacted to the cautious FY27 outlook amid broader macroeconomic uncertainty.
