Kogan.com Posts $11.2 Million Profit as Mighty Ape Returns to Positive EBITDA

Profit Rebound and Revenue Growth

Kogan.com Ltd (ASX:KGN) has posted a striking turnaround in FY26, delivering a net profit after tax of $11.2 million compared to a $39.5 million loss the previous year. Revenue climbed 4.6% to $510.7 million, supported by robust growth in Kogan.com’s core product sales and platform-based revenue streams. This performance reflects the group’s successful shift to a capital-light, platform-driven business model, where 61% of gross profit now comes from higher-margin platform sales, up from 59% in FY25.

Mighty Ape’s Operational Reset Pays Off

After a challenging period, the New Zealand-based Mighty Ape business returned to positive adjusted EBITDA in the final quarter of FY26. This turnaround was underpinned by a comprehensive operational reset including inventory optimisation, the closure of the Christchurch warehouse, and simplification of the cost base. Platform-based sales at Mighty Ape surged 113.6% to $8.7 million, driven by the expansion of the PRIMATE loyalty program, Mighty Ape Marketplace, and Mighty Mobile. Despite a 30% revenue decline to $85.6 million, the business is positioned for sustainable growth with a more scalable earnings model.

Margin Expansion and AI Efficiencies

Kogan.com’s gross profit increased 18.4% to $184.8 million, with gross margin expanding 0.8 percentage points to 43.5%. The company credited AI-driven automation deployed across customer care and internal operations for improved resolution times and reduced costs, enabling the fixed cost base to grow at roughly half the rate of revenue. Adjusted EBITDA for Kogan.com rose 22.4% to $45.1 million, with margins improving to 10.6%. The group-wide adjusted EBITDA margin increased 0.7 percentage points to 8.2%.

Strong Balance Sheet and Shareholder Returns

Kogan.com ended FY26 with $36.4 million in cash and no external debt, despite returning $33.2 million to shareholders through $20.2 million in share buy-backs and $13 million in dividends (net of the Dividend Reinvestment Plan). Inventories rose modestly to $77.9 million to support product growth. The board declared a fully franked final dividend of 8 cents per share, bringing the full-year dividend to 16 cents, a 14.3% increase on FY25. The Dividend Reinvestment Plan will apply with a 2.5% discount to the five-day VWAP preceding the record date.

Executive Remuneration and Board Changes

Executive pay remains closely tied to performance, with CEO Ruslan Kogan and CFO/COO David Shafer receiving remuneration packages comprising fixed pay, short-term incentives linked to adjusted EBITDA, and long-term incentives based on total shareholder return relative to a peer group. Mr Shafer has indicated plans to eventually step down, with the board discussing retention arrangements to ensure a smooth leadership transition. Meanwhile, independent chair Greg Ridder and director Harry Debney will retire at the upcoming AGM, with Gary Levin and Ronn Bechler expected to assume their respective roles.

What to Watch Next

With FY27 underway, Kogan.com aims to build on its momentum by focusing on disciplined product sales growth, expanding platform revenues, and leveraging AI efficiencies. Mighty Ape’s challenge will be to sustain its return to profitability and grow its higher-margin platform business in a competitive New Zealand market. The upcoming AGM and finalisation of executive remuneration packages will also be key events for investors. While the group’s capital-light model and strong cash flow provide a solid foundation, the broader economic environment remains uncertain, posing ongoing challenges for growth.