Temple & Webster Group (ASX:TPW) reported first-half FY26 revenue of AUD 376 million, up 20% year-over-year, as management pointed to accelerating growth since its last trading update and continued progress toward its target of reaching AUD 1 billion in revenue by FY28.
On the company’s results call, CEO Mark Coulter said growth was partly influenced by “natural volatility” in the business and partly by the timing of a planned promotional calendar. He added that the performance lifted Temple & Webster’s market share to an “all-time high” of 2.9%.
Revenue growth, market share, and category expansion
Temple & Webster also discussed early results from its New Zealand expansion. Coulter said the business generated more than AUD 1 million in sales within four months of launch, despite what he described as an “ad hoc setup” that currently routes New Zealand shoppers through the .com.au site with longer delivery times and duties at checkout. Management said the focus for the remainder of the calendar year is improving the end-to-end New Zealand customer experience, including faster shipping and launching a dedicated New Zealand site.
With the addition of home improvement and New Zealand, management said its total addressable market has more than doubled to over AUD 40 billion, and argued that online penetration in furniture and homewares in Australia and New Zealand lags global benchmarks by 5–7 years. Coulter also cited an estimated 5%–10% online penetration in home improvement as a longer-term tailwind.
Profitability, margins, and reinvestment priorities
Temple & Webster reported first-half EBITDA within its guidance range of 3%–5%. Management said EBITDA excluding New Zealand startup investment was AUD 14.9 million, representing a 4% margin. CFO Cam Barnsley said the company’s FY26 EBITDA margin guidance of 3%–5% includes New Zealand startup costs.
Delivered margin was 30.5%, within the company’s 30%–32% target range. Barnsley said fixed cost leverage was a key driver of the period, with fixed costs rising 7% versus revenue growth of 20%, reducing fixed costs as a percentage of revenue to 9.4% from 10.5% in the prior corresponding period. He also cited marketing leverage, with marketing as a percentage of revenue improving to 15.9% from 16.3%.
On questions about the decline in delivered margin versus prior periods and the role of promotions, management emphasized that promotions remain “majority” supplier-funded, while also noting the company can self-fund additional promotional intensity when needed. Coulter said the business is “not managing the business for profitability at this point of the cycle,” and that the company intends to fund into growth while staying within its stated EBITDA range.
Looking ahead, Barnsley said he expects more leverage in the second half from marketing and ongoing fixed cost discipline, and suggested that even if delivered margin is flat, EBITDA margins could expand in the second half. He also referenced potential tailwinds such as foreign exchange movements and supplier dynamics, while cautioning that margin expansion is intended to be gradual as the business scales.
Customer metrics and marketing efficiency
Management highlighted several operating metrics that it said are trending positively. Active customers reached 1.35 million, up 14% year-over-year, while conversion increased to 3.2%. Net Promoter Score was cited at 63.
Coulter said repeat orders continue to rise and now comprise 62% of total orders, up from 58% in the prior corresponding period, describing repeat behavior as a key lever for longer-term marketing and EBITDA outcomes. He added that marketing ROI has stabilized at 1.4 after two years of brand investment and that growth in first-time customer acquisition costs has slowed.
When asked about slower new customer order growth in the first half, Coulter said that on a revenue basis the trend was stronger than the order count, attributing part of the shift to channel mix and the acquisition of “better customers who are spending more.” He also said the company saw a “significant uptick” in new customers early in the second half, which he suggested could reflect promotional activity, changes in paid social strategy, or a macro-driven return to value-seeking behavior.
Balance sheet, cash flow, and capital management
Temple & Webster ended the half with AUD 161 million in cash and no debt. The company generated nearly AUD 23 million of free cash flow in the first half, which Barnsley said excludes buyback activity. Addressing a question on payables, he said the increase reflected timing, noting November is a particularly large period for the business and payments often fall due in January.
The company also discussed a new warehouse lease in Melbourne, which drove changes in right-of-use assets and property, plant, and equipment and required upfront capital investment before becoming operational. Barnsley said the facility provides flexibility as the company grows and is “economically more attractive” than a fully outsourced arrangement.
Management reiterated that its capital management priorities remain unchanged and said it is “fully funded” for organic and inorganic growth opportunities. Coulter said the on-market share buyback program remains available and that the company has the ability to buy back over 11 million shares under the current program.
Strategy updates: private label, AI, and growth pillars
Management outlined progress across its strategic priorities, including growth in private label and exclusive dropship products to 49% of revenue from 45% a year earlier. Coulter said a sourcing office in Shanghai is helping deepen manufacturing relationships, with a goal of improving speed to market and inventory management over time.
The company also discussed broader use of AI tools, including an AI-powered shipping engine that is “fully deployed” and delivering more than 10% improvement in shipping cost accuracy, as well as trials of personalization tools aimed at improving marketing efficiency and product recommendations. Coulter said the company is also updating its SEO strategy to improve “LLM discoverability.”
In home improvement, Coulter said private label penetration increased to 25% and described the growth driver as building a better range, supported by work on shipping and fulfillment solutions and improving site searchability for those products. In Trade & Commercial, he said a large portion of growth is self-serve through a dedicated portal for business customers, with larger clients receiving account management, and cited sectors such as retirement homes, childcare, hotels, and hospitality as areas of strength.
Closing the call, Coulter said trading momentum carried into the second half, driven by accelerating new customer growth and continued repeat customer growth. Management said its focus for the rest of FY26 remains growing revenue and market share while delivering on stated margin objectives.
About Temple & Webster Group (ASX:TPW)
Temple & Webster Group Ltd engages in the online retail of furniture, homewares, and home improvement products in Australia. The company operates the Temple & Webster online platform, which offers approximately 200,000 products. Temple & Webster Group Ltd was founded in 2011 and is headquartered in St Peters, Australia.
