How Kogan.com Navigated FY25 Growth Amid Mighty Ape’s Platform Challenges
Kogan.com Ltd reported robust FY25 growth driven by its core platform, despite setbacks from Mighty Ape's platform migration. The company declared a solid dividend and outlined a cautious but optimistic FY26 outlook.
- 15.4% revenue growth to $488.1 million
- 7.5% adjusted EBITDA margin despite $46.3 million goodwill impairment
- Active customers increased 35% year-on-year to 3.5 million
- Mighty Ape platform migration impacted performance, recovery expected in 2HFY26
- Final dividend declared at 7.0 cents per share, partially franked
Strong Growth Anchored by Kogan.com
Kogan.com Ltd has delivered a solid FY25 financial performance, with revenue climbing 15.4% to $488.1 million and adjusted EBITDA margin holding firm at 7.5%. The growth was primarily driven by the Kogan.com platform, which saw active customers rise by 35% year-on-year to 3.5 million, reflecting successful marketing investments and enhanced customer engagement strategies.
The company’s platform-based sales, which include marketplaces, loyalty programs, and verticals, continue to gain traction, now accounting for over 58% of gross sales. This shift towards higher-margin, capital-light revenue streams underpins Kogan’s strategy to improve profitability and operational leverage.
Mighty Ape Faces Headwinds but Recovery in Sight
While Kogan.com’s core operations thrived, its New Zealand subsidiary Mighty Ape experienced challenges following a platform migration in late 2024. This transition disrupted marketing efficiency and site stability, leading to a decline in adjusted EBITDA and gross profit for the division. However, management reports that most technical issues have been resolved, with marketing efficiency restored by May 2025. Inventory optimisation is ongoing and expected to complete by the first half of FY26, with a positive EBITDA turnaround anticipated in the second half.
The goodwill impairment of $46.3 million related to Mighty Ape’s acquisition weighed on overall profitability, resulting in a reported net loss after tax. Despite this, the underlying adjusted NPAT was positive, signaling resilience in the core business.
Dividend and Outlook Signal Confidence
The Board declared a final dividend of 7.0 cents per share, partially franked at 68.6%, reflecting confidence in the company’s cash flow generation and capital management. The dividend reinvestment plan remains available with a slight discount, encouraging shareholder participation.
Looking ahead to FY26, Kogan.com expects group adjusted EBITDA margins between 6% and 9%, with growth driven by platform-based sales and improved operating leverage. The company plans to maintain strong performance in Kogan Products and Marketplaces while focusing on Mighty Ape’s recovery.
Overall, Kogan.com’s FY25 results underscore the strength of its diversified e-commerce model and its ability to navigate operational challenges while investing for growth.
Bottom Line?
Kogan.com’s FY25 results affirm its growth trajectory, but Mighty Ape’s recovery will be pivotal for sustained profitability in FY26.
Questions in the middle?
- How quickly can Mighty Ape fully recover its profitability post-platform migration?
- What impact will the goodwill impairment have on Kogan.com’s long-term capital allocation?
- Can Kogan.com sustain its marketing-driven customer growth without eroding margins?
