WOTSO (WOT) H2 2025 earnings summary

Executive summary

• Revenue increased 5% to $47.05 million in FY25, with five new locations opened and over 150 new members added.

• Operates 31 flexible workspace locations across Australia and New Zealand, with three more in the pipeline for FY26.

• Strategic shift from property ownership to scaling flexible workspace operations, now 68% of total revenue.

• Partnerships and investments, such as BubbaDesk and Hamlet, drive differentiation and operational efficiency.

• Final distribution increased by 25% to 1.25 cents per security for FY25, reflecting steady revenue growth and strategic investments.

Financial highlights

• Total revenue rose 5% to $47.05 million, with underlying EBITDA up 14% to $9.8 million.

• Flexspace sales increased 6% to $32 million; real estate income up 3% to $14.8 million.

• Ancillary services revenue (virtual offices, parking, meeting rooms) grew 11% to $4.4 million.

• Statutory pre-tax loss of $4.4 million, impacted by depreciation and lease accounting standards.

• Net assets at 30 June were $228 million, with statutory NAV at $1.41 per security and adjusted NAV at $1.79.

Outlook and guidance

• Revenue projected to grow to $58 million by FY30, driven by maturation of new sites and a target of six new locations per year.

• Forecasting a 13% compound annual growth rate for flexspace revenue.

• Focus on organic RevPAD growth, ancillary services, and sustainable overhead levels.

• Confident in sustaining revenue growth above 11% annually as new sites mature.

• Market forecast for flexible workspace in Australia and New Zealand is 5%-10% annual growth.