Temple & Webster shares surge on five fold full-year profit gain, FY26 momentum
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More news: Temple & Webster shares surged in morning trade after the online furniture retailer reported a five-fold increase in net profit for financial year 2025 when compared to the previous year and analysts highlighted a strong start to FY26.
Shares in Temple & Webster had increased by 5.5% to $27.5 at 11:14am AEST.
RBC Capital Markets analyst Wei-Weng Chen said Temple & Webster posted “a good result that reveals both growth and margin expansion”.
Chen flagged that EBITDA profitability was 5% ahead of market expectations and FY26 guidance is consistent with market expectations. He also noted that revenue is up 28% year on year in the first six weeks of FY26.
UBS analyst Tim Piper said “expect bulls to focus on solid top-line trading update, margin guide increase and cash position”, while bears would likely focus on "contribution margin trend and jump in [customer acquisition cost]”.
Temple & Webster delivers five fold increase in full-year profit
The news: Online furniture retailer Temple & Webster has announced a 532.8% year-on-year increase in full-year net profit after tax during financial year 2025 amid a lift in earning margins and market share.
The numbers: Net profit after tax in financial year 2025 was $11.3 million, better than last year’s $1.79 million. Revenue meanwhile was up 20.7% to $600.7 million, better than last year’s $497.8 million.
The market consensus estimate, according to Visible Alpha, for net profit was $12.1 million and for revenue was $606.4 million.
The EBITDA came in at $18.8 million, a 43.2% year-on-year increase, with an EBITDA margin of 3.1%, compared to 2.6% in the previous year. Free cash flow also lifted 89.9% to $37.9 million.
Temple & Webster grew their share of Australia's furniture and homewares market to 2.7%, a 17% increase on the previous comparable period.
For FY26, Temple & Webster is guiding an EBITDA margin between 3-5%, targeting the midpoint.
The context: The company told the exchange that revenue has been supported by growth in new and repeat customers. The company says it has about 1.3 million active customers, up 16% on the previous comparable period.
It was also supported by a strong end of financial year promotional period that generated 28% more revenue year on year.
The company told the exchange it will keep its on-market buy-back in place, "in the absence of more accretive opportunities".
What they said: "With anticipated interest rate reductions, coupled with stimulatory government policies relating to housing, we remain optimistic that conditions in FY26 should be favourable for the furniture, homewares and home improvement categories," Temple & Webster CEO Mark Coulter said.
