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Highlights
- Kogan shares dip following lower group earnings
- Mighty Ape’s tech issues impact profitability
- Marketing push drives customer growth at Kogan
Shares of Kogan.com (ASX:KGN) came under pressure in early trading after the e-commerce group reported a significant decline in adjusted earnings. The results were weighed down by increased marketing expenditure and operational challenges at its New Zealand-based subsidiary, Mighty Ape.
As of 10:23 a.m. on the trading day following the announcement, Kogan’s stock had fallen 7.96% to AU$4.16. The company revealed that group adjusted EBITDA for the four months to April 2025 dropped 37.5% year-over-year to AU$6.8 million, representing a margin of 5%. Meanwhile, adjusted EBIT fell by 63.7% to AU$2.5 million, with a slimmer margin of 1.9%.
Kogan.com’s core unit saw a 14% dip in adjusted EBITDA to AU$8.1 million. However, the larger setback came from Mighty Ape, which swung from a AU$1.5 million profit to a AU$1.3 million loss during the same period. This reversal was primarily attributed to technological issues arising from a website platform upgrade initiated in February 2025. These technical disruptions continued a pattern that began during the peak 2024 holiday season, affecting both sales and inventory levels.
Despite the challenges, Kogan.com experienced a 27.3% rise in active customers, reaching 3.4 million as of April 30, 2025. In contrast, Mighty Ape recorded a 1.8% decrease in its active user base to 695,000. The group increased its marketing and promotional budget by 39% compared to the previous year in an effort to support customer acquisition and brand visibility.
Total group revenue slipped 0.7% year-over-year, as Kogan.com posted an 8.4% revenue increase that was offset by a decline in Mighty Ape's performance. Looking ahead, the Kogan Group expects Mighty Ape to regain profitability in the 2026 fiscal year as its platform stabilizes.
The developments around Kogan come as investors keep a close eye on performance trends within the ASX200 stocks, particularly among tech-driven consumer companies. For those tracking opportunities in consistent income-generating companies, the broader market also offers various options within the universe of ASX dividend stocks.
As the retail sector continues to evolve, operational resilience and tech infrastructure remain pivotal for performance, especially for digital-first companies within the ASX200.
