Temple & Webster Posts 20% Revenue Growth, EBITDA Hits $14.9m Excluding NZ Costs

Strong Revenue Growth and Market Expansion

Temple & Webster Group Ltd (ASX, TPW), Australia's leading online retailer for furniture and homewares, has delivered a compelling half-year performance for the six months ending December 2025. The company reported a 20% increase in revenue to $376 million, marking an acceleration since its last update and pushing its market share to an all-time high of 2.9% within the Australian furniture and homewares sector.

This growth was underpinned by strong performances across key segments, with home improvement sales soaring 47% and Trade & Commercial revenue rising 24%. Notably, Temple & Webster also expanded its footprint internationally, launching in New Zealand where it generated $1 million in sales within just four months, a promising start for the new market.

Operational Efficiency and Profitability

Despite the investments required for the New Zealand launch, Temple & Webster maintained EBITDA within its guidance range. Excluding the $1.4 million start-up costs related to New Zealand, EBITDA reached $14.9 million, representing a margin of 4.0%. This reflects a modest 13% increase on the prior comparable period and highlights the company’s ability to balance growth with profitability.

Operational efficiencies were further evidenced by a reduction in fixed costs as a percentage of revenue, down from 10.5% to 9.4%. The company’s deployment of AI tools has been credited with driving these cost improvements, alongside a record high in exclusive product revenue, which now accounts for approximately 49% of total sales, up from 45% a year earlier.

Customer Engagement and Capital Strength

Temple & Webster’s customer base grew to approximately 1.4 million active users, a 14% increase year-on-year, with repeat customers making up 62% of total orders. The average revenue per active customer remained stable at $472, while the conversion rate improved to 3.2%, indicating effective engagement and sales efficiency.

Financially, the company demonstrated strong cash flow generation with $23 million in free cash flow for the half and a cash balance of $161 million as of December 31, 2025. With no debt on the balance sheet, Temple & Webster has also been actively returning capital to shareholders through a $7.5 million on-market share buy-back program, which remains ongoing with capacity to repurchase over 11 million shares.

Outlook and Strategic Focus

Looking ahead, Temple & Webster reaffirmed its FY26 EBITDA margin guidance of 3-5%, emphasizing continued investment in growth drivers such as pricing and marketing. The company remains on track to achieve its mid-term revenue target of over $1 billion by FY28, aiming to consolidate its leadership in the online home retail market.

CEO Mark Coulter highlighted the company’s strategic progress, noting improvements in brand awareness, marketing return on investment, and the growing contribution of exclusive products. The successful New Zealand launch adds a new dimension to growth prospects, though it remains early days for this market.