Black Pearl Group (BPG) H2 2025 earnings summary

Executive summary

• Achieved significant milestones in product-led growth, launching Pearl Diver and Bebop, both contributing to strong revenue growth and market expansion.

• Achieved $12.5m+ ARR as of March 31, 2025, with 70% YoY growth, driven by Pearl Diver and new product launches.

• Focused on scaling for mid- and long-term success, with a clear strategy to reach NZD 50 million ARR in 2.5–4.5 years, primarily targeting the U.S. SME market.

• Emphasized speed, innovation, and adaptability as key competitive advantages in a rapidly evolving AI-driven landscape.

• Strategic focus on high-ARPU, low-churn customers improved revenue quality and reduced churn to 5.3% in Q4.

Financial highlights

• Subscription revenue grew 91% year-over-year, reaching NZD 7.7 million for FY 2025.

• Pearl Diver now delivers nearly NZD 10 million in annual recurring revenue; Bebop is showing strong early traction.

• Gross margin was 68%, down from 71% last year due to a temporary transition to a fixed fee data agreement, with recovery expected in Q2 FY 2026.

• ARR per employee reached NZD 245,000, a 7% increase year-over-year.

• Ended FY 2025 with NZD 6.7 million in cash and access to a NZD 4 million non-dilutive facility.

Outlook and guidance

• Clear path to $20m ARR within 7–12 months and targeting $50m+ ARR and 10,000 customers in 3–5 years.

• Expecting gross margin recovery as new data contracts phase in and revenue scales.

• Bebop ARR to begin contributing in FY26, with continued investment in marketing and product development.

• Well-capitalized to support continued investment in product, AI, and go-to-market initiatives.

• Ongoing evaluation of bolt-on acquisitions to accelerate growth.