eported a record revenue of $601 million, up 21 per cent on the prior year, reflecting growth in both new and repeat customers.  CEO Mark Coulter highlighted the company’s ongoing momentum. “Temple & Webster has delivered another set of record results as we push towards our goal of becoming Australia’s largest retailer in the furniture and homewares category,” Coulter said on Thursday’s earnings call. “Despite challenging retail trading conditions throughout FY25, we grew our revenue by 21 per cent and increased our share of the Australian furniture and homewares market to 2.7 per cent. June was a particularly strong month, with checkout revenue up 28 per cent,” he added.  The results reflect both strategic investment and operational discipline. Coulter pointed to the company’s core customer proposition comprising price, range and convenience as central to attracting a new generation of shoppers.  Online first advantage Temple & Webster’s market share gains are notable in an under-penetrated online segment. Active customers grew 16 per cent, and conversion rates improved to 3 per cent. Coulter attributed this to better engagement and the impact of AI technology integration. Unprompted brand awareness climbed from seventh to sixth place nationally, further reinforcing the brand’s online-first position. Sales of exclusive products, including private label and exclusive drop-ship offerings, now represent roughly 45 per cent of total revenue, a clear sign of the company’s emphasis on differentiation. CFO Cameron Barnsley underscored the strength of Temple & Webster’s asset-light model.  “This is a cash-generative business,” he said, noting that free cash flow nearly doubled year-on-year. Fixed costs as a percentage of revenue declined from 11.3 per cent in FY24 to 10.6 per cent in FY25, illustrating the leverage achieved as the business scales.  The combination of strong cash flow and a debt-free balance sheet positions the company well to fund growth initiatives organically or through strategic opportunities. “The beauty of being online only – we don’t have shelf space limitation. We have a lot of products and can meet a lot of different price points,” Coulter said in an interview with Inside Retail following the results presentation. “It’s about leveraging a huge amount of data, progressing AI and riding the optimisation curves of digital marketing. We’re doing UX and product work to improve conversion rate and ensure the digital experience is best in breed. You can have the fanciest website in the world, but unless you have the products, you’re not going to sell anything,” he added. AI in action Behind these topline results is a deliberate focus on operational efficiency and technological innovation.  “We continued to harness data and AI to deliver initiatives and develop features that either drove revenue or reduced costs across the business,” Coulter said. Coulter told Inside Retail that the brand is using AI across a multitude of areas in the business already. The main one being customer care, where 80 per cent of pre- and post-sales interactions are now partially or fully handled by AI or other tech solutions. This has contributed to a more than 60 per cent reduction in customer care costs as a proportion of revenue. “We’re using it across the site in things like product copy generation, content generation and images. We’re using it in personalisation and next-best-product recommendation. Across the board, I think the most exciting use is as a tool to increase productivity, and everyone in the company is encouraged to use various AI tools to make their jobs more effective and productive,” Coulter told Inside Retail. Coulter explained that AI is embedded across Temple & Webster’s operations, from analysing product and price gaps against competitors and suggesting new products, to assisting the design team and optimising supply chain replenishment. While still in its early stages, he sees significant potential for deeper integration. Home improvement, a standout performer In the company’s earnings announcement, Coulter described the home improvement category as a standout performer, with revenue growth of 43 per cent, and private label penetration approaching 20 per cent.  The category is a newer growth vertical for the company, and Coulter highlighted its potential. “This gives us access to a further $18 billion market with no online-only dominant player and significantly low online penetration compared to our core furniture and homewares category,” he said.  Coulter described home improvement as a newer, less-developed opportunity compared to furniture and homewares, with lower online penetration and an older customer profile. At this stage, he said, the focus is on nailing the fundamentals: the right range, solid quality, competitive pricing, positive reviews and a reliable service and delivery experience.  “The growth in FY26, from the past couple of years in home improvement, is really about getting a great range. For example, in bathrooms, it’s not about having a great bathroom range overall; it’s about having a great bathroom vanity range, a great tapware range, a great sink range. That’s the level people are shopping at,” Coulter said. He added that Temple & Webster is leveraging private label, sourcing and its drop-ship network to deliver that range.  “Once you have the fundamentals, technology can help sell, upsell, provide content and drive conversion. But at the beginning, there’s no point in that if you don’t have the right range,” he said. Eyes still on the $1 billion target Temple & Webster remains focused on achieving its midterm revenue target of $1 billion in annual sales, which implies a market share of just over 4 per cent.  Coulter concluded the announcement by recognising the team behind these achievements: “Their dedication, drive and adaptability make results like these possible. Every day, they help us deliver our vision to make the world look beautiful one room at a time,” he said.