Temple & Webster Surges 21% in FY25, Eyes $1B Revenue Milestone
Temple & Webster Group Limited has delivered a record FY25 with $601 million in revenue and a 43% jump in EBITDA, positioning itself strongly in the Australian furniture and homewares market. The company is on track to surpass $1 billion in annual revenue within the next few years.
- FY25 revenue hits $601 million, up 21% year-on-year
- EBITDA climbs 43% to $18.8 million with margin expansion
- Market share in Australian furniture and homewares grows to 2.7%
- Strong cash position of $144 million with zero debt
- FY26 EBITDA margin guidance set at 3–5%, targeting mid-point
Record Growth and Market Share Gains
Temple & Webster Group Limited has reported a standout financial year for FY25, achieving a record $601 million in revenue, marking a 21% increase over the previous year. This growth is underpinned by strong performance during the end-of-financial-year promotional period and a 28% year-on-year revenue increase in the first month of FY26, signaling sustained momentum.
The company’s share of the Australian furniture and homewares market expanded to 2.7%, a 17% rise compared to the prior corresponding period, reflecting successful strategies in customer acquisition and product exclusivity.
Profitability and Operational Efficiency
EBITDA surged 43% to $18.8 million, with margins improving by 50 basis points to 3.1%. Temple & Webster’s operating leverage is evident as fixed costs as a percentage of revenue declined to 10.6%, down from 11.3% in FY24. This efficiency gain is partly driven by the company’s innovative use of AI tools, which have reduced customer care costs by over 60% since FY23.
Free cash flow nearly doubled to $38 million, bolstering a robust cash balance of $144 million and maintaining a debt-free status. These strong cash flows provide the company with flexibility to invest in growth initiatives and capital management strategies, including an ongoing on-market share buy-back program.
Strategic Focus and Market Expansion
Temple & Webster continues to execute on its mid-term strategic goals, aiming to surpass $1 billion in annual revenue within three to five years. Growth drivers include expanding exclusive product offerings, which now represent 45% of revenue, and scaling adjacent categories such as home improvement, which grew 42.5% in FY25.
The company’s asset-light, drop-ship business model supports competitive pricing and a broad product range, with 79% of its top 500 products being exclusive. Investments in brand awareness and technology, including AI-driven personalization and a new 3PL warehouse in Western Australia, underpin its market share gains and customer satisfaction improvements.
Outlook and Guidance
Looking ahead, Temple & Webster projects an EBITDA margin of 3–5% for FY26, targeting the mid-point of this range. The company anticipates continued revenue growth supported by favorable market conditions, including expected interest rate reductions and government housing policies. Marketing spend will remain elevated but more efficient as brand-building becomes a core, ongoing activity.
With a strong balance sheet and no debt, Temple & Webster is well-positioned to capitalize on organic growth and pursue strategic acquisitions, maintaining its trajectory toward becoming Australia’s largest furniture and homewares retailer.
Bottom Line?
Temple & Webster’s FY25 results underscore its rising dominance and set the stage for ambitious growth, but execution risks and market dynamics will be closely watched.
Questions in the middle?
- How will Temple & Webster balance marketing investment with margin expansion in FY26?
- What impact will increased exclusive product penetration have on inventory and supply chain management?
- Can the company sustain its rapid growth in the home improvement segment amid competitive pressures?
