Online retailer Kogan.com has reported a statutory net loss after tax of $39.5 million for FY25, a sharp reversal from a small $83,000 profit in FY24. The result comes despite revenue climbing 6.2% to $488.1 million and gross sales rising 15.1% year-on-year to $930.9 million.

The company’s gross profit increased 12.7% to $189.9 million, while its gross margin strengthened to 38.9% (up 2.3%). Group active customers also surged, up 35.1% to 3.5 million, with the Kogan.com customer base itself rising 48.3% to 2.8 million.

However, earnings were hit by several costs, including a $46.3 million write-down of its New Zealand acquisition Mighty Ape, which has struggled since a website upgrade. Mighty Ape’s gross sales fell 4.4% year-on-year to $147.7 million, although it still delivered an active customer base of around 700,000.

Other pressures included a rise in equity-based compensation expenses to $5.6 million (FY24: $3.9m), $3.4 million in amortisation of acquired intangible assets, and unrealised FX losses of $0.8 million.

The group highlighted an “Adjusted Profit After Tax” of $14.9 million, down from $21 million last year, as a better measure of underlying business performance.

On the operational side, platform sales revenue grew 20.5%, while marketplace revenue jumped 34.2%. The Kogan First loyalty program contributed over 10% of total revenue ($51.3 million, up 17.5%). Inventories stood at $72.2 million at year-end.

In governance changes, Kogan announced a board shake-up, appointing Francine Ereira, Ronn Bechler, and Gary Levin as independent non-executive directors effective August 26. Current chairman Greg Ridder will remain in place until at least the November 2026 AGM, after which he and long-time director Harry Debney plan to retire to enable an orderly leadership transition.

Kogan acquired Mighty Ape in December 2020 for $122.4 million, adding 690,000 customers to its database at the time. The company has also expanded through asset acquisitions such as the Dick Smith brand.