Temple & Webster Group (TPW) H1 2026 earnings summary

Executive summary

• Revenue grew 20% year-over-year in H1 FY26, reaching AUD 376 million, driven by strong momentum in Home Improvement and Trade & Commercial segments, and supported by a record 1.4 million active customers, up 14%.

• EBITDA was AUD 14.9 million (4.0% margin) excluding New Zealand start-up costs, and AUD 13.5 million (3.6% margin) including these costs, within guidance.

• Free cash flow reached AUD 23 million, and cash on hand increased to AUD 161 million, with the group remaining debt-free.

• Market share reached an all-time high of 2.9%, with repeat orders accounting for 62% of total orders.

• New Zealand business generated over AUD 1 million in sales within four months of launch, outperforming early expectations and validating international scalability.

Financial highlights

• Revenue from contracts with customers was AUD 375.9 million, up from AUD 313.7 million in the prior period.

• Delivered margin was 30.5%, within the 30%-32% target range, despite increased promotional activity.

• Gross margin declined to 31.4% from 34.0% year-over-year due to higher promotional spend.

• Net profit after tax was AUD 5.8 million, down 35.8% year-over-year, impacted by start-up and one-off costs.

• Free cash flow for H1 FY26 was AUD 22.9 million, and cash and equivalents increased to AUD 160.6 million.

Outlook and guidance

• FY26 EBITDA margin guidance remains at 3%-5%, including New Zealand investment.

• Delivered margin expected to remain within 30%-32% for the full year, with further marketing efficiencies anticipated.

• The group maintains its mid-term goal of AUD 1 billion+ annual revenue within 3-5 years.

• Longer-term focus on scaling EBITDA margin above 15% through fixed cost leverage, supplier scale, Private Label growth, logistics optimization, and AI integration.

• New Zealand investment expected to total AUD 2-3 million for FY26, with positive early results.