Temple & Webster Group Limited reported a robust 20% revenue increase to $376 million in the first half of FY26, maintaining momentum towards its $1 billion revenue target by FY28. The company’s strategic investments in AI, exclusive products, and new markets like New Zealand underpin its expanding market presence.
- 20% revenue growth to $376 million in H1 FY26
- EBITDA of $13.5 million excluding $1.4 million New Zealand start-up costs
- Record active customers up 14%, marketing ROI stabilising
- Strong growth in home improvement (47%) and trade & commercial (24%) segments
- Robust balance sheet with $161 million cash and no debt
Strong Revenue Growth and Strategic Execution
Temple & Webster Group Limited has delivered a compelling first half for FY26, with revenue climbing 20% year-on-year to $376 million. This acceleration in growth is a clear signal that the company’s strategy to dominate the online home retail market is gaining traction. CEO Mark Coulter highlighted that the company remains firmly on track to reach its ambitious $1 billion revenue target by FY28, driven by both organic growth and expansion into new segments.
The company’s EBITDA stood at $13.5 million, excluding $1.4 million in start-up costs related to its recent New Zealand market entry. This result falls within the company’s guidance range, reflecting disciplined cost management alongside continued investment in growth initiatives.
Customer Growth and Marketing Efficiency
Temple & Webster reported a 14% increase in active customers, reaching a record 1.35 million. This growth is supported by a stabilising marketing return on investment, despite a 19% increase in marketing spend. The company’s focus on brand awareness and exclusive product lines is paying dividends, with exclusive products now accounting for nearly half of total revenue.
Notably, repeat orders have risen to 62% of total orders, up from 58% in the previous corresponding period, indicating strong customer loyalty and satisfaction. The company’s Net Promoter Score remains above 60%, underscoring its positive customer experience.
Expanding Market Reach and Innovation
Growth in the home improvement segment surged 47%, while the trade and commercial segment grew 24%, both outperforming the core furniture and homewares business. The New Zealand launch has been particularly promising, generating over $1 million in sales within just four months, despite being in the early stages of market penetration.
Temple & Webster continues to leverage technology and AI across its operations, including a fully deployed AI-powered shipping engine that has improved shipping cost accuracy by more than 10%. The company’s asset-light model and automation efforts have driven fixed costs as a percentage of revenue down to a record low of 9.4%, enhancing its competitive pricing advantage.
Financial Position and Outlook
The company’s balance sheet remains robust, with $161 million in cash and no debt, providing ample flexibility for further investment and shareholder returns. CFO Cameron Barnsley emphasised the company’s disciplined capital management, balancing growth investments with maintaining liquidity and pursuing strategic acquisitions.
Looking ahead, Temple & Webster reaffirmed its FY26 EBITDA margin guidance of 3–5%, with expectations of margin expansion over the longer term as AI and automation efficiencies take hold. The on-market share buy-back program remains active, supported by the strong cash position.
Overall, Temple & Webster’s H1 FY26 results illustrate a company confidently scaling its business while maintaining operational discipline, positioning it well to capture ongoing growth in the online home retail sector.
Bottom Line?
Temple & Webster’s strong half-year performance sets the stage for accelerated growth, but execution in new markets and margin expansion will be key to sustaining momentum.
Questions in the middle?
- How will Temple & Webster balance growth investments with margin improvement in FY26 and beyond?
- What are the risks and opportunities in scaling the New Zealand market launch?
- How might competitive pressures in online home retail affect Temple & Webster’s market share gains?