Kogan shares sink after Mighty Ape tech issues drag down earnings
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The news: Kogan.com dropped in early trading after the online retailer reported a sharp fall in adjusted EBIDTA as it lifted investment in marketing and group company Mighty Ape swung to a loss due to problems with its tech upgrade.
The numbers: Kogan shares were down 7.96% to $4.16 at 10:23am.
In the four months to April, adjusted EBITDA declined 37.5% to $6.8 million, at a margin of 5%, while adjusted EBIT declined 63.7% to $2.5 million at a margin of 1.9%.
The Kogan.com unit's adjusted EBITDA fell by 14% to $8.1 million, while Mighty Ape’s adjusted EBITDA swung from $1.5 million to a loss of $1.3 million.
Active customers at Kogan.com grew by 27.3% to 3.4 million as at 30 April 2025, whereas active customers at online retailer Mighty Ape reduced by 1.8% to 695,000. The company noted it had increased marketing and promotional investment by 39% year on year to drive customer growth.
Group revenue slid by 0.7% as 8.4% growth in Kogan.com was offset by a decline at Mighty Ape.
The context: Mighty Ape has been struggling with technical challenges caused by changes to the website platform announced in February 2025. These issues weighed on sales performance and inventory levels.
Mighty Ape previously faced implementation and technology challenges during the peak retail period between November and December 2024. The Kogan group expects Mighty Ape to return to profitable trading performance in FY26.
The source: ASX
