Temple & Webster Group (TPW) H2 2025 earnings summary

Executive summary

• Revenue grew 21% year-on-year to a record AUS 601 million for FY 2025, driven by both new and repeat customers, with strong market share gains and a positive start to FY 2026.

• EBITDA reached AUS 18.8 million, up 43% year-on-year, with margin improvement and robust free cash flow generation.

• Market share in the Australian furniture and home goods sector increased to 2.7%, up from 2.3% last year, with a mid-term goal of 4.2% market share and AUS 1 billion in annual sales.

• Active customers rose 16% to nearly 1.3 million, with high customer satisfaction and improved conversion rates supported by AI integration.

• The business remains asset-light, debt-free, and fully funded, closing the year with AUS 144 million in cash and generating AUS 38 million in free cash flow.

Financial highlights

• FY25 revenue: AUS 601 million (+21% vs FY24); delivered margin: AUS 191 million (+21% vs FY24).

• EBITDA margin improved to 3.1% (+50bps vs FY24); free cash flow of AUS 38 million (+90% vs FY24).

• Net profit after tax increased to AUS 11.3 million, up 533% year-on-year.

• Fixed costs as a percentage of revenue declined to 10.6% from 11.3% last year.

• Deferred revenue rose 31% to AUS 28 million, indicating strong sales momentum at year-end.

Outlook and guidance

• FY 2026 guidance: delivered margin expected to remain within 30%-32% range; EBITDA margin targeted at 3%-5%, with a focus on the midpoint.

• FY26 revenue off to a strong start, up 28% year-on-year from 1 July to 11 August 2025.

• Marketing costs anticipated to decrease as a percentage of revenue due to efficiencies from prior brand investments; brand marketing will become a recurring BAU cost from FY 2026.

• CapEx and D&A expected to rise due to new warehouse lease; share-based payments forecasted at AUS 5-6 million, and effective tax rate near 30%.

• Optimism for favorable market conditions in FY 2026, supported by potential interest rate cuts and government housing policies.