Kogan Group (ASX: KGN) has reported strong growth in its business update for the first 10 months of FY26, driven by Kogan.com's robust performance and early signs of a turnaround at Mighty Ape.
For the 10 months ended 30 April 2026, Group Gross Sales rose 13.2% to $875.6 million, while Group Revenue grew 6.0% to $433.7 million.
This top line growth translated into a 11.1% increase in Gross Profit, reaching $177.9 million.
The company also saw improved profitability, with Group Adjusted EBITDA climbing 17.4% to $37.5 million.
Group Adjusted EBIT experienced an even stronger surge, up 25.4% to $26.9 million.
The Group Adjusted EBITDA margin reached 8.6%, placing Kogan towards the upper end of its FY26 guidance of 6% to 9%.
Kogan.com Leads the Growth Charge
The robust performance of the core Kogan.com division was a significant contributor to the group's overall results.
Kogan.com reported an 18.2% increase in Gross Sales and an 18.1% rise in Revenue during the 10-month period.
Profitability within Kogan.com also saw strong uplift, with Adjusted EBITDA surging 32.0% and maintaining an Adjusted EBITDA margin of 11.5%.
This segment's growth was further supported by a 9% increase in Active Customers, highlighting successful engagement and platform-based sales expansion.
Mighty Ape Turnaround Showing Traction
Kogan's New Zealand subsidiary, Mighty Ape, showed early signs of a turnaround.
In the four months to 30 April 2026, Mighty Ape's Gross Margin improved by 8.4 percentage points to 37.8%.
The strategic shift towards a capital-light, high-margin model for Mighty Ape appears to be gaining traction, with a notable 52.8% reduction in Adjusted EBITDA losses compared to the prior corresponding period.
This follows previous reports that Mighty Ape was focused on an inventory and operational reset in 1HFY26, where it recorded an Adjusted EBITDA loss of $3.2 million.
Customer Growth and Strategic Focus
Across the entire Kogan Group, Active Customers increased by 4% to 3.5 million.
This sustained customer engagement underscores the company's strategic focus on its platform-based model.
The group continues its emphasis on expanding platform-based sales and implementing structural cost reductions.
These efforts are aimed at driving further operating leverage and supporting a path to sustained profitability for the entire group.
Outlook and Risks
Kogan Group's 10-month update demonstrates significant positive momentum, with strong growth in sales and profitability driven by the core Kogan.com division and an improving performance at Mighty Ape.
While the group is tracking towards the upper end of its guidance, ongoing execution risks at Mighty Ape remain a key factor for achieving sustained profitability.
The timing of Mighty Ape's full return to sustained profitability is a watch point for investors, alongside the broader retail environment.
