Kogan.com Clears $1 Billion Sales Mark as Mighty Ape Turns Profitable

Kogan.com Crosses the Billion-Dollar Sales Threshold

Kogan.com Ltd (ASX:KGN) crossed a symbolic threshold in FY26, reporting gross sales of $1.042 billion, up 12% year on year. Revenue rose 4.6% to $510.7 million, while statutory net profit after tax swung from a $39.5 million loss to an $11.2 million profit.

The more telling improvement came below the headline sales number. Gross profit increased 11.1% to $210.9 million, gross margin widened to 41.3%, and adjusted EBITDA rose 13.8% to $41.8 million. Free cash flow grew 18.2% to $38.3 million, giving the group room to return $34.9 million through dividends and share buy-backs while retaining $36.4 million in cash and no external debt.

Kogan.com Drives Growth and Operating Leverage

The Kogan.com division carried much of the result. Revenue climbed 16.2% to $425.2 million and adjusted EBITDA increased 22.4% to $45.1 million, with gross margin reaching 43.5% and fixed costs falling to 12.8% of revenue from 13.8% a year earlier.

Products revenue grew 18% to $304.6 million, while Marketplace revenue rose 20.3% to $35.4 million. Kogan FIRST subscription revenue reached $57 million, up 11%, and the group said platform-based businesses generated 61% of total gross profit, compared with 59% in FY25. That mix matters because marketplaces, subscriptions, advertising and commission-based services require less working capital than inventory-led retail.

Mighty Ape Reset Reaches Positive Fourth Quarter

Mighty Ape remains the less settled part of the story, but the operational reset produced a clear year-end marker. Gross margin expanded from 23.4% in the first quarter to 39% in the fourth, quarterly fixed costs fell from $4.9 million to $3.4 million, and inventory was reduced to $10 million from $21 million.

The New Zealand business recorded positive adjusted EBITDA of $0.4 million in the fourth quarter after adopting a One Global Team structure, closing its Christchurch warehouse and expanding Marketplace and PRIMATE. A single profitable quarter is not the same as a completed turnaround, but it gives management a measurable base from which to pursue the stated goal of sustainable profitability.

Capital Returns and FY27 Margin Target

Directors declared a further fully franked final dividend of 8.0 cents per share, taking the FY26 interim and final declarations to 16 cents per share before allowing for the dividend reinvestment plan. The company also reaffirmed its medium-term ambition to progressively grow adjusted EBITDA margins towards 12%, supported by higher-margin platform sales, product growth and AI-driven efficiencies.

That ambition now faces the ordinary hazards of online retail: discretionary spending, competition, inventory risk, supplier reliability and foreign-exchange movements. The report also disclosed a $6.6 million reduction to comparative net assets following a review of historical Mighty Ape inventory accruals, although the company said the adjustment had no impact on FY25 or FY26 earnings or cash.

Board Succession Adds a Second FY27 Test

Governance is also changing as the board renewal process reaches its next stage. At the 2026 annual general meeting, Gary Levin is due to replace Greg Ridder as chair and Ronn Bechler is due to take over the Audit & Risk Management Committee from Harry Debney; Ridder and Debney are to retire after a decade on the board.

For shareholders, the next test is whether the operating gains can survive beyond a strong reporting year. Kogan.com’s core division has demonstrated leverage, while Mighty Ape has supplied early evidence of a reset. The quarterly numbers from the latter, and the pace at which group margins move towards 12%, will determine how much of FY26’s improvement proves durable.