Kogan.com (ASX:KGN) management told investors its first-half FY26 results reflected “growth, strong cash generation, and improved operating leverage,” led by continued strength in the core Kogan.com segment while the company worked through a “reset and rebuild” at its New Zealand-based Mighty Ape business.
First-half performance led by Kogan.com segment
Chief Executive Officer Ruslan Kogan and Chief Financial Officer/Chief Operating Officer David Shafer said the group reports across two segments: Kogan.com and Mighty Ape. They described Kogan.com as “firing on all cylinders,” with gross sales surpassing AUD 500 million in the half, up 21% year over year, while revenue rose 17%.
At the group level, management said total revenue increased 5% to AUD 287.6 million, though group adjusted EBITDA dipped slightly by 3% due to the Mighty Ape reset. Despite that drag, the company highlighted free cash flow of AUD 45.1 million for the half, up 2% from the prior corresponding period, supported by AUD 46.9 million in operating cash flow.
Mighty Ape “transition half” marked by inventory reset and cost actions
Management characterized Mighty Ape’s first half as a deliberate transition period under its “One Group Strategy,” aimed at aligning procurement, verticals, marketplace, and loyalty programs across the two businesses. Mighty Ape revenue fell 25% in the half, which management said reflected intentional steps to reset inventory levels and tighten procurement, including a focus on rebuilding inventory with a greater emphasis on exclusive products.
Mighty Ape recorded an adjusted EBITDA loss of AUD 3.2 million for the half. Shafer said the company had “stripped back the cost base” and streamlined operations, and stated the business had reduced stock holdings by 32% through an optimization program. Management also said Mighty Ape’s adjusted EBITDA margin improved month-by-month, moving from “double-digit negative territory” in July to positive territory by December, though they cautioned that the New Zealand retail environment remains challenging and the reset is still a work in progress.
Shift toward “durable earnings base” in platform-based sales
Shafer highlighted that 72% of group gross profit came from exclusive products and services, which he described as areas where the company controls intellectual property, supply chain, and margins. He provided a breakdown of gross profit contributions, citing:
- Kogan.com products at 30.8% of total gross profit
- Loyalty programs at 28.3%
- Marketplaces at 18.7%
Management described this mix as a way to diversify revenue streams—combining recurring subscriptions, exclusive products, and “capital-light” marketplace revenue—while reducing reliance on any single category.
On operating leverage, the company said Kogan.com delivered double-digit revenue growth of 16.9%, with gross margin steady at 42.9% and “delivered margin” improving to 38.9%. Shafer said marketing investment increased to drive growth, while fixed costs as a percentage of sales declined to 11.3%.
In the business update, Ruslan Kogan said platform-based sales revenue rose 16.6% to AUD 68.9 million in the half, calling it “capital light,” scalable, and carrying “zero inventory risk.” The company also pointed to a record half for Kogan Marketplace, with revenue up 31.6% to AUD 19.5 million, and to Kogan First subscription revenue growth of 7.6% to AUD 30.3 million. Management noted that roughly 50% of product gross sales at Kogan.com were driven by First members, and said deferred income tied to prepaid subscriptions grew 13.7% to AUD 11.2 million.
The company also reported Kogan Verticals revenue increased 8.8% to AUD 12.3 million, with Kogan Mobile up 13% and Kogan Internet up 40%.
Capital position, shareholder returns, and dividend update
Management said inventory discipline helped release AUD 7.1 million year-on-year, “largely due to the Mighty Ape reset.” The company ended the half with AUD 71.8 million in cash, said this was up more than AUD 4 million year-on-year, and reiterated it remains debt-free.
Shafer said the company returned capital to shareholders during the half through AUD 5.8 million in dividends (net of the dividend reinvestment plan) and AUD 4.8 million via an on-market share buyback. The board declared an interim dividend of AUD 0.08 per share, fully franked, with payment scheduled for April 30. Management said the dividend reinvestment plan remains active and offers shares at a 2.5% discount to market price.
January trading update and outlook
Management provided a January 2026 trading update, reporting group gross sales up 10% to AUD 88.1 million and group revenue up 8%. They said Kogan.com gross sales rose 13% in January, while Mighty Ape gross sales fell 13%.
Looking ahead, management said it expects a “return to positive performance” in Mighty Ape in the second half of FY26 as the One Group Strategy progresses, though executives stressed they were “cautiously optimistic” and not making definite predictions. For FY26, the company expects group adjusted earnings margins in the range of 6% to 9%, citing ongoing growth initiatives, economic headwinds in New Zealand, and continued Mighty Ape optimization.
During Q&A, management also addressed currency, saying it hedges “order-by-order” and does not take a directional view on exchange rates. Shafer said the Australian dollar’s appreciation typically takes three to six months to flow through into landed costs, and that lower landed costs could eventually support lower consumer prices and improved demand.
About Kogan.com (ASX:KGN)
Kogan.com Ltd operates as an online retailer in Australia. The company offers various brands across a range of categories, including electronics, appliances, homewares, hardware, toys, and others; and owns and operates 20 private label brands. It also provides pre-paid mobile phone plans online; and directly sourced holiday packages and travel bookings. In addition, the company offers general insurances, including home, contents, landlord, car, and travel insurances, as well as pet and life insurance; NBN internet plans; and home loans.
