Mighty Ape’s Losses Persist Amid Kogan.com’s Strong FY25 Gains

Strong Customer Growth and Revenue Expansion

Kogan.com Ltd has reported a robust financial performance for the fiscal year 2025, underpinned by a 35% increase in active customers to 3.5 million. This surge in customer base has translated into solid revenue growth, with Kogan Products revenue climbing 15% year-on-year to $258.1 million. Platform-based sales, a key driver of recurring and high-margin revenue, grew an impressive 24% to $111.9 million, reflecting the company’s strategic focus on expanding its marketplace and subscription offerings.

Improved Profitability and Cash Generation

The group’s financial health is further evidenced by a 40% increase in free cash flow, reaching $32.4 million. Adjusted EBITDA margins for FY25 settled around 7.5%, with management outlining medium and long-term aspirations to push these margins higher through disciplined capital management and operational efficiencies. The board has also refreshed its governance framework, emphasizing long-term shareholder value through revamped executive remuneration and sustainable business practices.

Mighty Ape’s Strategic Turnaround

While Kogan.com remains the primary growth engine, its subsidiary Mighty Ape is undergoing a significant operational reset. Inventory right-sizing was completed by May 2025, and recent trading data from October indicates momentum building towards recovery. The company expects Mighty Ape to return to profitability in the second half of FY26, supported by initiatives such as marketplace introduction, loyalty program enhancements, and improved marketing efficiency. However, the segment recorded losses in the first four months of FY26, consistent with prior guidance.

Outlook and Strategic Priorities

Kogan.com’s strategy centers on leveraging its exclusive brands, platform-based sales, and loyalty programs to drive recurring revenues and customer retention. The group aims to balance short-term returns with investments in long-term growth, targeting adjusted EBITDA margins between 8% and 12% medium-term, and above 20% in the longer term. The board’s recent renewal and enhanced oversight signal a commitment to disciplined execution amid a competitive e-commerce landscape.

Overall, Kogan.com’s FY25 results demonstrate resilience and growth momentum, while the ongoing Mighty Ape turnaround will be a key focus for investors watching the group’s progress in FY26.