Temple & Webster Group (TPW) H2 2025 earnings summary

Executive summary

• Revenue grew 21% year-over-year to a record $601 million for FY25, driven by both new and repeat customers, with strong market share gains and a positive start to FY26.

• Market share in the Australian furniture and homewares sector increased to 2.7%, up 17% year-over-year, with a mid-term goal of 4.2% market share and $1 billion in annual sales.

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

• Net profit after tax surged to $11.3 million, up 533% compared to FY24.

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

Financial highlights

• EBITDA increased 43% year-over-year to $18.8 million, with margin rising to 3.1%, slightly above guidance.

• Delivered margin rose 21% to $191 million, maintaining a strong 31.7% of revenue, at the top end of the 30%-32% target range.

• Free cash flow nearly doubled to $38 million, and operating cash flow reached $46 million.

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

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

Outlook and guidance

• FY26 has started strongly, with revenue up 28% year-over-year from 1 July to 11 August 2025.

• EBITDA margin guidance for FY26 is 3–5%, targeting the mid-point, with delivered margin expected to remain within 30%-32%.

• 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.

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

• Optimism for favorable market conditions in FY26, supported by potential interest rate cuts and government housing policies.