Kogan.com posts $39.5 million loss after $46.3m write-down for Mighty Ape deal as board guard changes

ASX-listed online retailer Kogan.com is back in the red following its write-down of New Zealand acquisition Mighty Ape.

Shares in Kogan.com (ASX: KGN) were placed in a trading halt briefly on Monday morning ahead of the results release and news of board changes. The $46.3 million on-cash impairment to goodwill from its $122m Mighty Ape acquisition in 2020 was announced last week.

Kogan’s 2025 financial year results saw revenue increase of 6.2% to $488.1 million on the back of an increase in customers of 35.1% to 3.5 million.

Gross sales hit $930.9m, up 15.1% YoY, while gross profit of rose 12.7% to $189.9m. The statutory loss after tax was $39.465m, compared to an $83,000 NPAT in FY24.

However, equity-based compensation and associated expenses rose by more than a third to $5.6 million (FY24: $3.9m).

Non-cash depreciation and amortisation of intangible assets (Brand, software and right-of-use assets) from the Mighty Ape acquisition were $3.4m in FY25, the same as last year.

Unrealised losses sat at $0.8 million (up from $100k in FY24) in relation to open forward foreign exchange contracts at 30 June, 2025.

The company argued that an “Adjusted Profit After Tax of $14.9 million (FY24: $21.0 million), may be a useful metric to assess underlying business performance”.

Platform-based sales revenue rose 20.5%, while marketplace revenue up 34.2%, but Mighty Ape’s gross sales fell 4.4% on 12 months ago to $147.7m.

The Kogan First loyalty program contributed more than 10% of total revenue at $51.3 million, up 17.5%.

Kogan Group inventories totalled $72.2m at the end of FY25.

The company’s cash balance sat at $42.1m on 30 June 2025 with no external debt. FY2025 saw $11.1 million being invested into the share buy-back program, payment of the FY24 Final Dividend of $6.6 million and FY25 Interim Dividend of $5.8 million (net of the Dividend Reinvestment Plan).

The final dividend of 7 cents per ordinary share was partially franked at 68.6% because of the Mighty Ape goodwill impairment, which limited the ability to utilise some of the Group’s franking credits.

CEO and founder Ruslan Kogan said FY25 was a strong year for the company.

“We delivered growth across all major revenue streams, expanded the Kogan community, and strengthened our balance sheet through disciplined execution,” he said.

“While Mighty Ape faced challenges during the year, including the impact of its platform migration and tough trading conditions in New Zealand, we have taken the prudent step of resetting the business. With these foundations now in place, we are confident Mighty Ape is on the path to recovery and long-term success.”

Meanwhile, board chair Greg Ridder has flagged his intention to depart in 12 months following the 2026 AGM, a decade after the IPO, along with director Harry Debney.

Joining the board are Francine Ereira, a former exec at Klarna, Zip Co, The Walt Disney Company and Sheridan; Market Eye founder Ronn Belcher; and Gary Levin, a NED at Baby Bunting and chair of Cheap as Chips.

Kogan shares are down around 15% on 12 months ago, at $4.12 in morning trade.