Hipages Group (HPG) H1 2025 earnings summary

Executive summary

• Achieved 11% year-over-year recurring revenue growth to $39.2 million and 9% total revenue growth to $40.6 million in H1 FY25, driven by full migration of Australian and New Zealand tradie customers to new platforms and subscription models, supporting ARPU and retention growth.

• EBITDA before significant items rose 4% to $8.7 million, with EBITDA margin at 21%, down 1 ppt year-over-year due to non-recurring marketing spend.

• Free cash flow improved to $1.2 million from negative $0.1 million in the prior period; closing cash and funds on deposit at $22.5 million, with no debt.

• Focused on enhancing customer engagement and retention through new features, go-to-market initiatives, and SaaS migration.

• Statutory net profit after tax was $73,000, down from $3.7 million in H1 FY24, which included a non-recurring gain.

Financial highlights

• MRR up 14% to $6.84 million; recurring revenue up 11% to $39.2 million; total revenue up 9% to $40.6 million year-over-year.

• EBITDA before significant items up 4% to $8.7 million; EBITDA margin at 21%.

• Net profit after tax before significant items at $0.1 million; free cash flow of $1.2 million.

• Group ARPU up 9% to $2,267; Australia ARPU up 8% to $2,374; New Zealand ARPU up 18% to $1,149.

• Closing cash and funds on deposit at $22.5 million, with no debt.

Outlook and guidance

• FY25 revenue target updated to $83–$84 million, underpinned by completed migrations and initiatives to boost engagement and retention.

• EBITDA margin expected to expand by 1–2 points to 23–24%; free cash flow guidance raised to $5–$6 million.

• Marketing spend to normalize at 24–25% of revenue for the full year.

• Guidance assumes no material deterioration in macroeconomic conditions.

• Further ARPU and retention growth expected as migration to new price plans completes by October 2025.