Intelligent Monitoring Group (IMB) H2 2025 earnings summary

Executive summary

• FY2025 adjusted EBITDA reached $38.4 million, with strong operational and financial performance and underlying operating cash flow of $31.1 million before non-recurring costs.

• Revenue base is highly recurring, with $6.9 million per month and average customer relationships of 7+ years (residential/SMB) and 15 years (commercial).

• Acquisition of Western Advance WA for $4.5 million expands expertise in the oil and gas sector and strengthens the commercial enterprise segment.

• Strategic focus on leveraging technology, especially AI-enabled video monitoring and virtual patrols, to drive growth and differentiate in the Australasian security market.

• $24 million cash balance and $35 million acquisition facility provide financial flexibility.

Financial highlights

• FY25 revenue increased to $174.9 million, with gross profit at $67.2 million and EBITDA margin at 22%.

• Adjusted EBITDA rose 19.3% to $38.4 million; profit before abnormal items and amortization increased 84% over FY24.

• Reported pre-tax loss of $15 million due to $20.5 million in abnormal items, including refinancing, acquisition, integration, and impairment costs.

• Underlying operating cash flow before non-recurring costs was $31.1 million, up nearly 50% from the prior year.

• CapEx for FY25 was $10.4 million, mainly due to completion of the New Zealand 4G/3G upgrade and medical alarm upgrades.

Outlook and guidance

• FY2026 commercial and enterprise pipeline stands at $36.6 million, supporting expected organic growth of 14% in Australia and 19% in New Zealand.

• No formal group guidance issued; management targets mid-$40 million EBITDA run rate, with seasonality expected.

• Profit improvement expected in FY26, with formal guidance to be provided at the AGM in November 2025.

• Abnormal costs expected to be significantly lower in the coming year, supporting cleaner profitability.