Kogan.com Ltd reports robust sales and profit growth for the first four months of 2025, powered by strong marketing investment, while its subsidiary Mighty Ape faces technical setbacks but shows early signs of recovery.
- Kogan.com gross sales up 24% year-on-year
- Active customers at Kogan.com rise 38% to 2.7 million
- Group adjusted EBITDA margin holds at 5% despite challenges
- Marketing spend increased 39% to fuel long-term growth
- Mighty Ape impacted by technical issues but expected to return to profit in FY26
Strong Growth at Kogan.com
Kogan.com Ltd has delivered a compelling start to 2025, with gross sales soaring by over 24% compared to the same period last year. This surge was driven by robust performances across its key divisions, including Kogan FIRST, Marketplace, and Verticals. The company’s active customer base expanded impressively by 38%, reaching 2.7 million, underscoring growing consumer engagement and loyalty.
The growth translated into a 16% increase in gross profit, enabling Kogan.com to reinvest aggressively in marketing and promotional activities. This strategic move saw marketing expenditure rise by 39%, aimed at strengthening the loyalty program and the broader ecosystem that supports the company’s long-term growth ambitions.
Mighty Ape Faces Headwinds but Shows Recovery Signs
In contrast, Mighty Ape, Kogan.com’s New Zealand-based subsidiary, encountered significant technical challenges following a website platform upgrade earlier this year. These issues disrupted sales and inventory management, leading to a decline in active customers by 1.8% to 695,000. Despite these setbacks, the company reports early signs of recovery, particularly through the rapid scaling of the Mighty Ape Marketplace. The team is actively addressing inventory imbalances and expects the subsidiary to return to profitability in the 2026 financial year.
Group Financial Performance and Outlook
Overall, the group achieved a 20.2% increase in gross sales and grew its active customer base by 27.3% to 3.4 million. However, group revenue slightly declined by 0.7%, reflecting Mighty Ape’s challenges offsetting Kogan.com’s gains. Gross profit rose by 7.3% to $54.2 million, with an improved gross margin of 39.7%, driven by platform-based sales.
Adjusted EBITDA fell by 37.5% to $6.8 million, resulting in a 5% margin, impacted by both the increased marketing spend and Mighty Ape’s operational difficulties. Adjusted EBIT also declined significantly. The company remains confident that as marketing investments mature and technical issues at Mighty Ape are resolved, profitability margins will improve in the coming months.
Kogan.com continues to position itself as a leading digital retailer focused on delivering value through price leadership and digital efficiency. The current results reflect a balancing act between aggressive growth investment and managing subsidiary integration challenges.
Bottom Line?
Kogan.com’s growth engine is firing strongly, but the road to Mighty Ape’s recovery will be critical for sustaining group momentum.
Questions in the middle?
- How quickly can Mighty Ape fully resolve its technical and inventory issues?
- What is the expected return on the increased marketing investment in the medium term?
- Will Kogan.com’s active customer growth translate into sustained revenue gains despite current revenue softness?