Investment/ASX: KGN/eCommerce
Why we hold Kogan.com for the long term.
Kogan.com is one of Australia's largest online retailers, and owns Mighty Ape in New Zealand. DMS Group holds a long-term position because the business is shifting towards higher-margin platform revenue, generates strong free cash flow and returns it to shareholders.
+12.0%, a record
+13.8%
up from 38.9%
+18.2%, no debt
dividends + buy-backs
One platform, many ways to earn.
Kogan.com sells its own brands, other brands and third-party marketplace listings to customers in Australia and New Zealand. Subscriptions and everyday services like mobile and insurance bring the same customers back.
- 1
Products
Exclusive brands designed and sourced by Kogan, plus third-party brands it buys and resells. Kogan Products earned A$304.6m of revenue in FY26.
- 2
Platform
Marketplace sellers list on Kogan.com and pay commission, with no stock held by Kogan. Platform-based sales now make up 73% of gross profit.
- 3
Repeat customers
Kogan FIRST and Mighty Ape PRIMATE subscriptions earned A$61.4m, plus Kogan Mobile, Insurance, Energy, Internet and more.
Why we believe it is a good long-term investment.
A founder-led retailer turning into a platform: bigger margins, recurring revenue and cash returned to shareholders, at a share price the market has marked down.
- 01 / 06
Record scale
Gross sales passed A$1 billion for the first time in FY26, up 12.0%. The core Kogan.com business grew gross sales 16.4%.
- 02 / 06
A shift to platform revenue
Marketplace, subscription and service income made up 73% of gross profit in FY26, up from 59% a year earlier. That income needs little or no inventory.
- 03 / 06
Margins moving up
Gross margin rose from 27.9% in FY23 to 41.3% in FY26. Management targets an adjusted EBITDA margin of around 12% in the medium term and above 20% in the long term.
- 04 / 06
Recurring subscriptions
Loyalty subscription revenue grew 14.3% to A$61.4m. Members pay every year and come back more often.
- 05 / 06
Cash returned to owners
A$38.3m of free cash flow, no external debt and A$34.9m returned through dividends and buy-backs. FY26 dividends rose 14% to 16 cents, fully franked.
- 06 / 06
A turnaround in New Zealand
Mighty Ape cut fixed costs 12.9% and halved its inventory, and posted its first positive EBITDA quarter since 2024 in Q4 FY26. Any recovery from here is upside.
Bigger, leaner, more profitable.
Figures from Kogan.com's FY26 and FY24 results presentations released to the ASX. All amounts in Australian dollars.
Gross sales
Back to growth after FY24, and above A$1 billion for the first time.
Gross margin
More of every sale is kept as profit as the platform mix grows.
Adjusted EBITDA
From A$6.8m in FY23 to A$41.8m in FY26.
FY26 revenue by division
Total revenue A$510.7m. Growth comes from the Kogan.com side.
- Kogan Products +18.0%$304.6m
- Mighty Ape Products −34.9%$76.9m
- Loyalty subscriptions +14.3%$61.4m
- Marketplaces +25.9%$38.7m
- Verticals +4.3%$24.2m
- Advertising & other +14.6%$4.9m
The margin roadmap
Adjusted EBITDA margin: actual results and management's stated aspirations.
The risks we accept.
The market was unconvinced on results day, with shares falling more than 16%. These are the issues we track.
- i.Consumer spending
Cost-of-living pressure weighs on discretionary purchases like electronics and homewares.
- ii.Global competition
Amazon and Temu compete hard on price and delivery in Australia and New Zealand.
- iii.Mighty Ape
The NZ business lost A$5.1m on a statutory basis in FY26, and its sales are still falling.
- iv.Broker caution
After the result, Bell Potter rated KGN Hold (target A$3.90) and Jarden Underweight (target A$4.25). Our view is longer-term than theirs.
A cash-generating platform we intend to own, not trade.
- Investment above A$50,000, classified Long Term
- Held through share price volatility; no short-term price target
- Reviewed at each half-year and full-year result
- Key signals: platform share of gross profit, EBITDA margin, Mighty Ape profitability
