Kogan.com (ASX: KGN) Tops $1 Billion in Gross Sales as Margins Expand

Kogan.com reported higher earnings and cash flow for FY26 as its core Australian operation offset continued weakness at Mighty Ape.

Group gross sales rose 12% to $1.04 billion for the year ended June 30. Revenue increased 5% to $510.7 million, while gross profit climbed 11% to $210.9 million.

Adjusted EBITDA advanced 14% to $41.8 million. The adjusted EBITDA margin widened 0.7 percentage points to 8.2%. Statutory net profit after tax was $11.2 million.

Gross sales include marketplace and vertical transaction values that are not recorded entirely as revenue. That makes revenue and profit growth important measures of Kogan’s underlying earnings quality.

Core Business Drives the Result

Kogan.com revenue increased 16.2% to $425.2 million. Gross profit rose 18.4% to $184.8 million, while adjusted EBITDA gained 22.4% to $45.1 million.

Its gross margin expanded 0.8 percentage points to 43.5%. Fixed costs declined to 12.8% of revenue from 13.8%, supporting operating leverage.

The company attributed some efficiency gains to artificial intelligence and automation. AI was deployed across customer care in March 2026, automating a significant proportion of enquiries.

Kogan Products revenue grew 18% to $304.6 million. Marketplace revenue climbed 25.9% to $38.7 million, while loyalty subscription revenue increased 14.3% to $61.4 million.

Higher-margin platform-based sales generated 61% of group gross profit, compared with 59% in FY25. This mix includes marketplaces, subscriptions and vertical services, which require less inventory than direct retail sales.

Mighty Ape Reset Takes Hold

Mighty Ape remained the main drag on group performance. Revenue fell 30% to $85.6 million, and the business recorded a $3.3 million adjusted EBITDA loss.

However, Mighty Ape returned to positive adjusted EBITDA during the fourth quarter. Inventory was reduced from about $21 million to $10 million, while the Christchurch warehouse ceased operating.

Quarterly fixed costs declined from $4.9 million in the first quarter to $3.4 million in the fourth. The reset also removed unprofitable categories and cleared low-margin inventory.

Cash Returns and Dividend

Operating cash flow rose 12.5% to $41.9 million. Free cash flow increased 18.2% to $38.3 million.

Kogan finished June with $36.4 million in cash and no external debt. It returned $34.9 million to shareholders through dividends and its on-market buyback during FY26.

The board declared a fully franked final dividend of 8 cents per share. That lifts the full-year dividend to 16 cents, up 14.3%.

The final dividend is payable on November 30 to shareholders registered on September 11. The board also intends to continue the share-buyback program.

Early FY27 Trading

Unaudited July gross sales rose 9% to $88.1 million, with revenue up 6% to $43.8 million. Kogan.com gross sales grew 12.8%, but Mighty Ape sales fell 17.1%.

The company said FY27 priorities include product sales growth, platform expansion and further AI-led efficiencies. Mighty Ape will remain focused on generating sustainable, profitable sales.

Separately, CFO and COO David Shafer has indicated he is approaching a departure after 16 years. The board is discussing a retention arrangement to support an orderly transition.