Temple & Webster shares soar on 500% profit explosion

The Temple & Webster share price ripped 11% higher to a new record of $29.06 on Thursday.

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Temple & Webster Group Ltd (ASX: TPW) shares ripped 11% higher to a new record of $29.06 in earlier trading.

The share price surge follows the company releasing its full-year FY25 results and a trading update.

The online furniture retailer revealed a staggering 533% lift in profits to $11.3 million for the financial year, up from $1.8 million in FY24.

At the time of writing, Temple & Webster is the strongest riser of the day within the benchmark S&P/ASX 200 Index (ASX: XJO).

Let's check out the rest of the report.

Temple & Webster shares rip on 538% profit rise

Here are the highlights of the report:

What else happened in FY25?

Temple & Webster said its skyrocketing FY25 revenue was supported by growth in both new and repeat customers.

CEO Mark Coulter said the company also ran a strong end-of-financial-year promotional campaign, which boosted revenue.

The company reported a 28% lift in revenue from 1 June to 30 June 2025 compared to the previous year.

Temple & Webster said this had resulted in an increased deferred revenue balance, which would be recognised in FY26.

Coulter said:

June was a particularly strong month, with checkout revenue up 28%, highlighting that our customer proposition centred around price, range and convenience continues to resonate with the next generation of shopper in our category.

What did Temple & Webster management say?

Coulter said Temple & Webster was pushing toward its goal of becoming Australia's largest furniture and homewares retailer.

He commented:

Despite challenging retail trading conditions throughout FY25, we grew our revenue by 21% and increased our share of the Australian furniture and homewares market to 2.7%.

Home improvement was again a standout performer, with revenue growth of 43%, and private label penetration in this category increasing markedly, approaching 20%.

What's next for Temple & Webster?

Temple & Webster reports a strong start to FY26, with revenue from 1 July to 11 August up 28% year over year.

The home improvement category continues to outperform amid rising home values and a positive outlook for the property market in FY26.

Coulter said:

We are pleased that the momentum we built throughout the second half of FY25 has continued into FY26.

With anticipated interest rate reductions, coupled with stimulatory government policies relating to housing, we remain optimistic that conditions in FY26 should be favourable for the furniture, homewares and home improvement categories.

Temple & Webster also provided some guidance for FY26.

The company is guiding an EBITDA margin of between 3% and 5%, targeting the mid-point of the range.

Coulter said this would be driven by leverage on the company's fixed cost base and FY24/25 marketing investments.

The strength of our balance sheet position, with $144m of cash and no debt, allows us to continue executing towards our goal of becoming Australia's largest retailer of furniture and homewares.

Temple & Webster share price snapshot

The Temple & Webster share price is currently up 131% over the past 12 months and up 256% over the past five years.

Temple & Webster outperformed every other ASX 200 retail share in FY25, rising 127%.

Besides lower interest rates, other tailwinds for Temple & Webster shares include a national retail sales surge and rebounding household spending.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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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