Kogan.com Delivers Strong Growth Through Operational Discipline

About Kogan Ltd

Kogan Ltd (ASX: KGN), one of Australia’s leading online retailers, has delivered strong top-line and bottom-line growth for the latest reporting period, underscoring its ability to navigate economic uncertainty through digital innovation, disciplined cost control, and customer-focused execution.

Despite ongoing consumer caution and rising competition in the e-commerce space, the company reported significant gains in active customer numbers, improved gross margins, and continued progress across its marketplace and subscription platforms. Kogan’s results reaffirm its positioning as a resilient, tech-driven retailer with a scalable business model.

Financial Performance Highlights

Kogan.com reported double-digit growth in revenue and EBITDA, supported by a combination of higher unit economics, margin expansion, and operating leverage. While headline sales growth was modest due to cycling elevated COVID-era comparables, gross profit and net earnings demonstrated meaningful improvement.

The company achieved a notable increase in adjusted EBITDA, reflecting tight control over warehousing, logistics, and marketing spend. Gross margin improved year-on-year as the business reduced reliance on deep discounting and optimised product mix across proprietary and third-party inventory.

Operating cash flow also strengthened, driven by higher sell-through rates and more efficient working capital management.

Customer Growth and Marketplace Expansion

Kogan’s active customer base grew to over 4.1 million, supported by acquisition marketing, improved customer experience, and the growing contribution of the Kogan Marketplace platform. The Marketplace—where third-party sellers list products on Kogan’s website—continues to scale rapidly, with reduced inventory risk and higher contribution margins.

The business has focused on deepening vendor relationships, enhancing the seller portal, and improving product discoverability. As a result, the Marketplace now represents a larger share of total Gross Sales, providing greater resilience and profitability.

In parallel, the business continues to build long-term value through its growing base of Kogan FIRST members, who benefit from exclusive deals, free shipping, and other loyalty perks.

Kogan FIRST and Subscription Growth

The company’s Kogan FIRST membership program has emerged as a key driver of recurring revenue, customer retention, and basket size. Member engagement and reactivation rates remain strong, with the program offering valuable customer insights and lower acquisition costs over time.

Kogan FIRST subscriptions now contribute materially to earnings, and the company has signalled further enhancements to the platform in the year ahead. This includes exclusive offers, faster fulfilment, and bundled services across adjacent verticals such as travel, insurance, and mobile.

The subscription-based revenue model aligns with Kogan’s goal of predictable, high-margin earnings streams that complement traditional retail performance.

Operational Resilience and Strategic Discipline

Kogan has demonstrated operational agility amid supply chain disruptions, cost inflation, and shifting consumer demand. Inventory levels have been right-sized to match demand more closely, reducing the need for clearance sales and improving unit margins.

The company has also implemented several initiatives to lower operating expenses, including warehouse consolidation, automation investments, and marketing efficiency improvements. These actions have supported a return to sustainable margin expansion while preserving customer experience.

Kogan remains committed to capital discipline, having returned to positive net cash and avoided unnecessary promotional activity in a competitive retail landscape.

Digital Platform Development and Technology Focus

Kogan continues to invest in its technology and logistics platforms, enhancing site performance, conversion rates, and fulfilment capabilities. The company has made significant upgrades to its mobile app and website interface, improving speed, navigation, and product recommendations.

Further investment in data analytics and machine learning supports smarter inventory planning, targeted marketing, and personalisation—all key to driving repeat purchases and improving customer lifetime value.

The company’s proprietary platform also enables it to adapt quickly to changing market dynamics, with scalable infrastructure supporting both organic growth and category expansion.

Outlook and Strategic Priorities

Looking ahead, Kogan.com has outlined several key priorities to drive its next phase of growth. These include expanding the Kogan Marketplace by onboarding new sellers and broadening product categories, as well as enhancing the Kogan FIRST membership experience to grow its subscriber base and improve customer loyalty. The company also plans to invest further in logistics, data, and automation to boost operating efficiency and scalability. In addition, Kogan will explore strategic partnerships across adjacent sectors such as insurance, travel, and telecommunications to diversify its offering and unlock new revenue streams.

The company is optimistic about long-term demand trends in digital retail, even as short-term consumer confidence remains mixed. With a strong brand, efficient model, and scalable technology stack, Kogan believes it is well placed to benefit from the continued shift to online shopping in Australia and New Zealand.