Hipages Group (HPG) H2 2025 earnings summary

Executive summary

• Achieved key strategic milestones, including full migration of 33,000 Australian tradies to the Single Trading Platform (STP) and transition to a full subscription model in New Zealand, driving ARPU growth in both markets.

• Achieved 10% year-over-year revenue growth to AUD 83.1 million and 20% EBITDA growth to AUD 19.6 million, with free cash flow up 162% to AUD 5.6 million.

• ARPU increased 9% to AUD 2,267, with Australia up 8% to AUD 2,381 and New Zealand benefiting from the new subscription model.

• Maintained leadership as the top platform for connecting homeowners with tradies in Australia and New Zealand, with 68% brand awareness.

• Demonstrated strong recurring revenue, ARPU, and free cash flow growth, highlighting the scalability and efficiency of the operating model.

Financial highlights

• Monthly recurring revenue (MRR) up 14% to AUD 7.4 million; recurring revenue up 12% to AUD 80.8 million, now 97% of total revenue; total revenue up 10% to AUD 83.1 million year-over-year.

• Gross profit margin held at 89%; EBITDA up 20% to AUD 19.6 million, with a record EBITDA margin of 24%, up two percentage points.

• Net profit after tax reached AUD 2.4 million, a significant increase from the prior year.

• Free cash flow rose to AUD 5.6 million, with closing cash and deposits at AUD 26.9 million and no debt.

• Operating cash flow increased 17% to AUD 22.5 million; free cash flow margin improved to 47%.

Outlook and guidance

• Targeting FY 2026 revenue growth of 10%-12%, driven by subscription tradie and ARPU growth, with EBITDA margin expected at 24%-26% and free cash flow projected to increase to AUD 8-10 million.

• Long-term management EBIT margin target of 30% at scale, leveraging a high fixed cost base for operating leverage.

• Continued focus on feature enhancements, pricing optimization, and driving adoption of the single tradie platform.

• FY26 guidance assumes no material deterioration in macroeconomic conditions.