Kogan.com Ltd

FY26 group gross sales exceeded $1 billion, up 12%. Group revenue increased 5% to $510.7 million, gross profit rose 11% to $210.9 million, and adjusted earnings increased 14% to $41.8 million. Kogan.com revenue increased 16% to $425.2 million, gross profit increased 18% to $184.8 million, and adjusted earnings increased 22% to $45.1 million. Mighty Ape revenue fell 30% to $85.6 million and the business recorded a $3.3 million adjusted earnings loss for the full year, though Q4 returned to positive adjusted earnings. Free cash flow increased 18.2% to $38.3 million, the company ended with $36.4 million of cash and no external debt, and it returned $34.9 million to shareholders. July trading showed Kogan.com gross sales up 12.8% and revenue up 17.9%, while group gross sales rose 9% and revenue rose 6% in July. Management reaffirmed its medium-term objective of progressively growing adjusted earnings margins toward 12% and said FY27 priorities are disciplined profitable growth, continued Kogan.com earnings growth, and building on Mighty Ape’s reset.

Ruslan Kogan framed FY26 as proof that Kogan’s “two engines” strategy — products plus platform-based sales — is working, with Kogan.com delivering operating leverage and margin expansion while the group continues to invest in growth. He emphasized that the business is strengthening AI capabilities across customer care, logistics, purchasing, engineering, marketing and finance, and said this is already improving productivity and speed of execution. His tone was upbeat and confident, but he repeatedly noted that Mighty Ape is still early in its recovery and that the group remains mindful of broader economic uncertainty.

David Shafer focused on the hard numbers: Kogan.com revenue of $425.2 million, gross profit of $184.8 million and adjusted earnings of $45.1 million; group cash of $36.4 million with no external debt; and free cash flow of $38.3 million, up 18.2%. He said 61% of group gross profit came from capital-light platform-based sales, up from 59% in FY25, and that 73% of gross profit came from exclusive products and services. He also highlighted Mighty Ape’s reset, including inventory reduced to about $10 million from $21 million a year earlier, fixed costs down 13%, and Q4 gross margin rising to 39.0% from 23.4% in Q1. On capital allocation, he said excess capital is returned only after funding growth, and noted the company returned $34.9 million to shareholders through $14.7 million in gross dividends and $20.2 million of buybacks.

Analysts pressed on the difference between gross sales and revenue in July, and management explained that gross sales reflect cash register sales while revenue is recognized when goods ship; for Kogan.com, July gross sales rose 12.8% and revenue rose 17.9% because some end-of-financial-year sales shipped in July. Questions also focused on buybacks versus reinvestment, with management saying capital is returned only after business investment needs are met. Management was asked about Mighty Ape profitability and said they expect FY27 adjusted EBITDA profit for Mighty Ape if the Q4 momentum continues, supported by a lower cost base, better inventory quality and more platform-based sales. There were also questions about David Shafer’s planned departure, and he said there is no definite timing and that any transition will be orderly.