Temple & Webster Posts A$601m Revenue, 532% Profit Jump in FY25
Temple & Webster has reported a robust 21% revenue increase in FY25, alongside a near sixfold jump in net profit, setting a confident tone for FY26 with strong early trading and an optimistic outlook.
- FY25 revenue climbs 21% to A$601 million
- Net profit after tax soars 532% to A$11.3 million
- Market share in Australian furniture and homewares rises to 2.7%
- Free cash flow hits A$37.9 million with zero debt
- FY26 EBITDA margin guidance set between 3% and 5%
Strong Financial Momentum Amid Challenging Conditions
Temple & Webster Group Limited (ASX, TPW), Australia's leading online furniture and homewares retailer, has delivered a standout FY25 performance, reporting a 21% increase in revenue to A$601 million. This growth was driven by both new and repeat customers, underscoring the company’s successful customer engagement strategy despite a tough retail environment.
Net profit after tax surged by an impressive 532%, reaching A$11.3 million, while EBITDA rose 43% to A$18.8 million, pushing the EBITDA margin to 3.1%, slightly above the company’s guidance range. These results reflect Temple & Webster’s effective cost management and operational leverage, even as it invests in marketing and expands its product range.
Market Share Gains and Customer Growth
The company’s market share in the Australian furniture and homewares sector increased to a record 2.7%, a 17% rise from the previous year. Active customers grew by 16% to approximately 1.3 million, although revenue per active customer saw a marginal dip. Notably, the home improvement segment outperformed with 43% revenue growth, supported by a rising penetration of private label products, which now account for nearly 20% of that category.
Temple & Webster’s brand awareness also improved, moving up one position in the market rankings, aided by increased marketing efforts. Exclusive products, including private label and exclusive drop-ship items, now represent about 45% of total revenue, highlighting the company’s strategy to differentiate its offering and improve margins.
Robust Balance Sheet and Capital Management
The company’s balance sheet remains strong, with a cash balance of A$144 million and no debt as of 30 June 2025. Free cash flow was robust at A$37.9 million, reflecting the strength of Temple & Webster’s asset-light, negative working capital business model. The board has maintained an on-market share buy-back program to enhance shareholder returns in the absence of more accretive investment opportunities.
Optimistic Outlook for FY26
Early trading in FY26 has continued the positive momentum, with revenue from July 1 to August 11 up 28% year-on-year. CEO Mark Coulter expressed confidence in the year ahead, citing expected interest rate reductions and supportive government housing policies as potential tailwinds. The company has set FY26 EBITDA margin guidance between 3% and 5%, targeting the midpoint, driven by fixed cost leverage and prior marketing investments.
Temple & Webster’s strategic focus on price, range, and convenience appears well-aligned with evolving consumer preferences, positioning it strongly to pursue its ambition of becoming Australia’s largest furniture and homewares retailer.
Bottom Line?
Temple & Webster’s strong FY25 foundation and confident FY26 guidance set the stage for continued market share gains amid evolving retail dynamics.
Questions in the middle?
- How will Temple & Webster sustain growth amid rising competition in online furniture retail?
- What impact will government housing policies and interest rate changes have on consumer spending in FY26?
- Will the company expand its private label and exclusive product offerings further to boost margins?
