Kogan.com FY25 Platform Sales Up 20.5%, Mighty Ape Hits $46M Impairment

Strong Growth Amidst Challenges

Kogan.com Ltd delivered a compelling FY25 performance, marked by substantial growth across its core divisions and a significant expansion of its customer base. The group’s active customers surged by 35.1% year-on-year to reach 3.5 million, with Kogan.com itself driving a 48.3% increase to 2.8 million active users. This growth was fueled by strategic investments in high-return marketing channels, reinforcing the company’s position as a leading e-commerce player in Australia and New Zealand.

Platform-based sales revenue, a key metric reflecting the company’s scalable and capital-light business model, climbed 20.5% to $107.9 million. The marketplace segment was a standout, posting a 34.2% revenue increase to $29.4 million, benefiting from both intensified marketing efforts and a shifting competitive landscape. Loyalty programs also contributed strongly, with Kogan FIRST generating $51.3 million in revenue, up 17.5%, and launching a premium tier, Kogan FIRST MAX, aimed at boosting customer engagement and average revenue per user.

Mighty Ape’s Setback and Strategic Initiatives

Despite the overall positive momentum, subsidiary Mighty Ape faced a challenging year. Following a major website upgrade in October 2024, the business encountered technical issues that temporarily disrupted marketing efficiency and sales. Additionally, a soft retail market in New Zealand compounded difficulties. In response, the group prudently recorded a $46.3 million goodwill impairment related to the Mighty Ape acquisition, a non-cash, one-off adjustment reflecting current trading conditions.

However, Mighty Ape’s strategic initiatives showed promise. The launch of the Mighty Ape Marketplace, an upgraded PRIMATE loyalty program, and a new mobile app have begun scaling rapidly, with PRIMATE subscription revenue soaring 367% to $2.4 million. Marketing efficiency rebounded in the latter part of the year, positioning Mighty Ape for a potential recovery in FY26 as it focuses on product range improvements and inventory optimisation.

Financial Position and Corporate Governance

The group closed FY25 with a healthy cash balance of $42.1 million and no external debt, underpinning its financial flexibility. Inventories stood at $72.2 million, split between in-warehouse and in-transit stock. The board declared a final dividend of 7.0 cents per share, 68.6% franked, continuing a shareholder-friendly approach despite the statutory loss after tax of $39.5 million, which included several non-cash and non-recurring items.

In governance developments, Kogan.com announced the appointment of three new independent non-executive directors effective August 26, 2025, while signaling the planned retirement of two long-serving directors around the 2026 Annual General Meeting. These changes reflect the company’s ongoing commitment to strong oversight as it navigates growth and operational challenges.

Looking ahead, Kogan.com’s blend of robust core growth, strategic marketplace expansion, and cautious management of subsidiary setbacks sets the stage for an intriguing FY26. Investors will be watching closely to see if Mighty Ape can rebound and how the new loyalty program tiers impact customer lifetime value.