The Temple & Webster Group Ltd (ASX: TPW) share price is down 25% after reporting its FY26 first-half result and a trading update.
Temple & Webster is an online retailer of many thousands of homewares, furniture and home improvement products.
Temple & Webster FY26 first-half result
Here are some of the highlights from the first six months of FY26 to December 2025:
- Revenue rose 19.8% to $375.9 million
- ‘Delivered’ profit rose 12.8% to $114.5 million
- EBITDA pre-NZ (EBITDA explained) rose 13% to $14.9 million
- EBITDA grew 2.2% to $13.5 million
- Net profit after tax (NPAT) declined 36% to $5.8 million
- Free cashflow of $23 million
What happened in this result?
Temple & Webster noted that its revenue growth accelerated since its last trading update. Its growth during this period led to the company’s market share climbing to 2.9% of the Australian furniture and homewares market.
Its growth plays are “performing well” – home improvement revenue grew 47% and trade and commercial revenue grew 24%.
Temple & Webster recently started selling items to New Zealand customers and it has generated $1 million of sales in the four months since launch.
The company continues to aim for $1 billion of revenue by FY28. Pleasingly, the marketing return on investment (ROI) has stabilised and exclusive product revenue has reached an all time high of 49% (up from 45%).
Additionally, company-wide deployment has helped to drive fixed costs to a record low percentage of revenue (to 9.4%, down from 10.5%).
The number of active customers grew by 14% year on year to around 1.4 million, while revenue per active customer was stable at $472. Repeat customers now represent 62% of total orders.
Outlook for the Temple & Webster share price
Temple & Webster’s cash balance rose 15.3% to $160.6 million thanks to its capital-light/negative working capital model. This cash is a useful support of the share price and can support further share buybacks.
Trading has started strongly in the first several weeks of the second half. Revenue for 1 January to 9 February was up 20%, driven by an acceleration in new customer growth and continued growth of repeat customers.
It continues to target an EBITDA margin of between 3% to 5% for the year, while also gaining market share as fast as possible. The company said it will invest fixed cost leverage into growth drivers of price and marketing.
I think Temple & Webster is one of the leading upcoming ASX growth shares. I think it’s a top buy right now, with less potential disruption from AI than other ASX tech shares, in my view. If revenue keeps rising then it’s definitely one to watch and it could grow in scale significantly over the next few years.
