Mighty Ape Reset Weighs on Group as Kogan.com Drives Margin Gains

Strong Half-Year Growth at Kogan.com

Kogan.com Ltd has reported a solid half-year result for the six months ending 31 December 2025, showcasing the strength and scalability of its e-commerce platform. The group’s flagship Kogan.com business posted a 21% increase in gross sales to $501.6 million and a 17% rise in revenue to $232.4 million. This growth was underpinned by a 28% jump in active customers, now totaling 3 million, reflecting the brand’s growing appeal and customer loyalty.

Importantly, Kogan.com not only grew sales but also improved profitability metrics. Gross margin remained stable at 42.9%, while delivered margin expanded to 38.9%. Operating leverage was evident as fixed costs declined slightly relative to revenue, enabling adjusted EBITDA margin to tick up to 11.9% from 11.7% a year earlier. This margin expansion signals efficient cost management alongside strategic marketing investments that are driving strong returns.

Mighty Ape Reset and Early Signs of Recovery

In contrast, the group’s New Zealand-based subsidiary Mighty Ape experienced a challenging period, reflecting a deliberate operational and inventory reset. Revenue declined 25% to $55.2 million, and the business recorded an adjusted EBITDA loss of $3.2 million for the half. However, management highlights that inventory levels were significantly reduced, and operational improvements are underway.

Encouragingly, Mighty Ape achieved profitability in December, marking a turning point after months of restructuring. The company is now focused on rebuilding inventory with fresh product ranges, optimising processes, and expanding verticals under the unified One Group Strategy, which aims to replicate Kogan.com’s successful platform-based sales model. Despite ongoing economic headwinds in New Zealand, management remains cautiously optimistic about Mighty Ape’s recovery in the second half of FY26.

Financial Position and Shareholder Returns

The Kogan Group’s balance sheet remains robust, with cash reserves increasing to $71.8 million and no external debt. Inventory across the group totals $76.9 million, with Kogan.com maintaining optimal stock levels and Mighty Ape preparing for a fresh inventory build. The company also continued its share buy-back program, investing $4.8 million during the half.

Reflecting confidence in the business, the board declared a fully franked interim dividend of 8 cents per share, up 14.3% from the prior corresponding period. The dividend reinvestment plan will apply with a modest discount, supporting shareholder value alongside ongoing growth investments.

Outlook and Strategic Focus

Looking ahead, Kogan.com Ltd reaffirms its FY26 guidance of adjusted EBITDA margins between 6% and 9%, balancing growth initiatives with prudent cost management. The group aims to sustain momentum in platform-based sales and product categories while driving Mighty Ape’s return to profitability. The broader economic environment, particularly in New Zealand, remains uncertain, prompting a conservative outlook for the second half.

Founder and CEO Ruslan Kogan emphasised the company’s commitment to delivering value, noting that trusted brands like Kogan.com tend to benefit when consumers seek affordability. The group’s integrated approach and digital efficiency position it well to navigate challenges and capitalise on opportunities in the evolving retail landscape.