Kogan.com Ltd (ASX:KGN) Announces May 2025 Business Update
Financial Performance
Kogan.com Ltd reported a Gross Sales growth of over 24% compared to the prior period, driven by strong performance across its Kogan FIRST, Marketplace and Verticals divisions. Active customers increased to 2.7 million, representing a year-on-year growth of 38%. Gross Profit grew by 16%, supporting the ongoing strategic reinvestment of incremental profitability into marketing and promotion initiatives. Marketing and promotional investment increased by 39% YoY, resulting in an Adjusted EBITDA margin of 7.7%.
Mighty Ape Update
Mighty Ape faced technical challenges following a website platform upgrade in February 2025, which impacted sales performance and inventory levels. The team has progressively resolved several stability issues, showing early signs of recovery with Gross Sales momentum driven by the Mighty Ape Marketplace scaling rapidly since launch. The company expects Mighty Ape to return to profitable trading performance in FY26.
Group Performance
Despite significant marketing investment at Kogan.com and ongoing technical challenges at Mighty Ape, the Group delivered Adjusted EBITDA Margins of 5%, which is expected to increase as marketing investments continue to bear fruit and technical challenges are resolved.
Motley Fool contributor Matt Burgess has positions in Kogan.com. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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