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Kogan Group Margin Reaches 8.6% as Mighty Ape Loss Shrinks 53%
Group EBITDA rose 17% to A$37.5m; Kogan.com maintained 11.5% margin. Mighty Ape's return to profitability is the next catalyst for the stock, with early signs showing a 53% loss reduction.
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Kogan Group (ASX: KGN) reported a 10-month FY26 update showing Group Gross Sales up 13.2% to A$875.6 million and Adjusted EBITDA up 17.4% to A$37.5 million. The Group EBITDA margin of 8.6% places the company near the top end of its FY26 guidance range of 6% to 9%. The core Kogan.com division drove the bulk of the improvement, while the Mighty Ape turnaround in New Zealand showed early traction with a halved EBITDA loss.
Kogan.com EBITDA Jumps 32% on 18% Sales Growth
Kogan.com reported an 18.2% increase in Gross Sales and an 18.1% rise in Revenue over the 10-month period. Adjusted EBITDA surged 32.0%, and the division maintained an Adjusted EBITDA margin of 11.5%. This margin level is well above the group average and reflects the platform-based model's operating leverage.
Active Customers and Platform Sales
Kogan.com's Active Customers grew 9% during the period. The company has been shifting toward higher-margin platform sales – where third-party sellers list on the Kogan marketplace – rather than holding inventory. That mix shift supports margin expansion without requiring proportional working capital. The 11.5% EBITDA margin suggests the strategy is delivering.
Mighty Ape Margin Recovery: 8.4pp Gain in Four Months
Mighty Ape, the New Zealand e-commerce subsidiary, showed early signs of a turnaround in the four months to 30 April 2026. Gross Margin improved by 8.4 percentage points to 37.8%. The division has been moving from a capital-intensive inventory model to a capital-light, high-margin structure.
From A$3.2 Million Loss to Halved Loss
In the first half of FY26, Mighty Ape recorded an Adjusted EBITDA loss of A$3.2 million. Over the four-month period through April, that loss was reduced by 52.8% compared with the prior corresponding period. The improvement is still early – the division is not yet profitable – but the trajectory is positive. The key question is how quickly the loss can turn to breakeven and then to positive contribution.
What a Full Turnaround Means for Group EBITDA
If Mighty Ape reaches breakeven on an EBITDA basis, the group's EBITDA would increase by at least A$3–4 million at current revenue run rates. That would push the Group EBITDA margin above 9% – beyond the top end of FY26 guidance – without requiring any revenue growth from Kogan.com. Conversely, any stall in the turnaround would keep group margins stuck in the 7–8% range.