Temple & Webster Group (TPW) H1 2025 earnings summary

Executive summary

• Achieved record H1 FY25 revenue of AUD 314 million, up 24% year-on-year, driven by growth in new and repeat customers and higher average order values.

• Market share in the furniture and homewares sector increased to 2.9%, a 23%–24% rise year-on-year, with a goal to reach 4.2% for AUD 1 billion in annual sales.

• EBITDA grew 76% year-on-year to AUD 13.2 million, with a margin of 4.2%, and profit after tax rose 118% to AUD 9.0 million.

• Free cash flow reached AUD 33 million, up 61%, and closing cash balance was AUD 139 million, with no debt.

• Business remains well-capitalised and asset-light, supporting ongoing growth initiatives.

Financial highlights

• Delivered margin improved to AUD 102 million, up 26% year-on-year, representing 32.4% of revenue.

• Fixed costs as a percentage of revenue decreased to 10.5%, with overall fixed costs up due to headcount and wage inflation.

• Contribution margin rose 33% year-on-year to 14.7% of revenue.

• Operating cash flow increased 60% to AUD 35 million, with strong inventory turnover and low CapEx requirements.

• Net profit after tax rose 118% to AUD 9.0 million, and basic EPS was 7.57 cents.

Outlook and guidance

• Full-year EBITDA margin guidance reiterated at 1%-3%, with flexibility to invest in growth and marketing in H2.

• Revenue growth of 16% year-on-year continued into early H2, with February accelerating to 19%.

• Strategic goal to reach AUD 1 billion+ annual sales within 3-5 years remains on track.

• Post-FY25, EBITDA margins expected to build towards a long-term target of 15%+, driven by scale, private label, and AI efficiencies.

• On-market share buyback program remains in place until June 2025.