Temple & Webster Group (TPW) H2 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of AUS 601 million, up 21% year-on-year, with active customers rising 16% to nearly 1.3 million and strong market share gains to 2.7%.

• EBITDA reached AUS 18.8 million (3.1% margin), up 43% year-on-year, with robust free cash flow and a closing cash balance of AUS 144 million; the business remains debt-free.

• Strategic focus on brand, exclusive products, technology, and adjacent growth remains on track, with AI integration driving efficiencies and cost reductions.

• No dividends were paid or declared; capital allocation prioritizes reinvestment, growth, and ongoing share buy-backs.

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

Financial highlights

• Revenue grew 21% to AUS 601 million; delivered margin rose 21% to AUS 191 million, maintaining a strong 31.7% of revenue.

• EBITDA margin improved to 3.1%, up 50 basis points year-on-year; free cash flow reached AUS 38 million.

• Net profit after tax increased to AUS 11.3 million, up 533% year-on-year; basic EPS was 9.52 cents.

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

• Cash balance as of 30 June 2025: AUS 144 million, with no debt.

Outlook and guidance

• FY26 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.

• 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 FY26, supported by potential interest rate cuts and government housing policies.