Temple & Webster Group (TPW) H1 2025 earnings summary

Executive summary

• Revenue grew 24% year-over-year to AUD 314 million in H1 FY25, driven by both new and repeat customers and higher average order values.

• Market share in the Australian furniture and homewares sector increased to 2.9%, a 23%–24% rise year-over-year.

• EBITDA rose 76% year-over-year to AUD 13.2 million, with a margin of 4.2%.

• Free cash flow reached AUD 33 million, up 61%, reflecting the strength of the asset-light, negative working capital model.

• Closing cash balance was AUD 139 million as of 31 December 2024, with no debt, supporting ongoing growth initiatives.

Financial highlights

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

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

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

• Net profit after tax increased 118% to AUD 9.0 million.

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

Outlook and guidance

• Revenue growth and market share gains continued into early H2 FY25, with revenue up 16% year-over-year from 1 January to 10 February 2025 and February accelerating to 19%.

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

• Strategic goal to reach AUD 1 billion+ in 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.