FY25 Revenue Hits $600.7M, EBITDA Jumps 43% at Temple & Webster

Strong Financial Performance

Temple & Webster Group Ltd has delivered a standout financial year for FY25, reporting record revenue of $600.7 million, a 20.7% increase over the prior year. Profit before tax surged 133.4% to $14.8 million, reflecting both top-line growth and improved operational efficiency. EBITDA rose 43.2% to $18.8 million, surpassing the company’s guidance range and delivering a margin of 3.1%.

This performance was underpinned by an increase in market share, disciplined cost management that reduced operating expenses as a percentage of revenue, and the absence of one-off costs that impacted the prior year, including a convertible notes fair value adjustment and an impairment of an investment in an associate.

Customer Growth and Product Strategy

Temple & Webster’s active customer base expanded to an all-time high of 1.3 million, up 16% year-on-year, driven by growth in both new and repeat customers. The company’s strategic focus on exclusive products paid dividends, with exclusive offerings accounting for 45% of total revenue. Notably, 79% of the top 500 selling products were exclusive to the Group, up from 70% the previous year.

The Group’s innovative drop-shipping model, which enables direct delivery from suppliers to customers, continues to support faster delivery times and a broad product range without the need for extensive inventory holding. Complementing this, the private label range and expansion into home improvement and Trade & Commercial segments contributed to robust category growth, with home improvement revenue up 43% and Trade & Commercial revenue increasing 9%.

Technology and Cost Efficiency

Temple & Webster has leveraged data, artificial intelligence, and technology to enhance customer experience and reduce costs. In FY25, 80% of customer support interactions were partially or fully handled by AI, resulting in a more than 60% reduction in customer care costs as a percentage of revenue since FY23. The company’s mobile app remains the fastest-growing and highest-converting platform, reflecting successful digital engagement strategies.

Disciplined cost management has lowered fixed costs as a percentage of revenue, contributing to improved profitability despite a slight dip in gross margin percentage from 33.4% to 33.0%, attributed to increased promotional activity offset by savings in product and transport costs.

Capital Management and Shareholder Returns

The Group ended FY25 with a strong cash position of $144.3 million and remains debt free. Positive free cash flow of $37.9 million was generated, supporting ongoing investment and strategic initiatives. No dividends were declared during the year, consistent with prior periods.

Temple & Webster completed an on-market share buy-back program initiated in June 2024 and commenced a new buy-back program in June 2025, signalling confidence in the company’s valuation and capital allocation strategy.

Executive Remuneration and Governance

Executive remuneration remains closely aligned with performance. The CEO’s remuneration was unchanged in FY25, consistent with shareholder-approved terms, while the CFO and Chief Experience Officer received increased incentive targets reflecting their roles in driving growth and operational excellence. The Board continues to oversee remuneration policies that balance rewarding performance with shareholder interests.

Outlook and Risks

Temple & Webster remains committed to its mid-term goal of exceeding $1 billion in annual sales within 3-5 years, focusing on brand leadership, exclusive products, technology innovation, cost efficiency, and expansion into adjacent markets. However, the Group acknowledges risks including economic uncertainties, competitive pressures, supply chain disruptions, and regulatory changes that could impact future performance.

The FY25 financial statements were audited by Ernst & Young, who issued an unqualified opinion, affirming the integrity of the reported results.