WOTSO (WOT) H2 2025 earnings summary

Executive summary

• Revenue increased 14% year-over-year, 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.

• The year marked the first full period of owning, operating, and managing the portfolio without significant one-off transactions.

Financial highlights

• FY25 total revenue reached $47.05M, up 5% year-over-year; underlying EBITDA rose 14% to $9.79M.

• Flexspace sales increased 6% to $31.87M; real estate income up 3% to $14.84M.

• 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.

• Portfolio occupancy at 97%; average flexspace occupancy 78.4%.

Outlook and guidance

• Revenue projected to grow to $58M by FY30, driven by maturation of new sites and six new locations annually.

• 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.

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

• Funding growth through a mix of landlord contributions, operating cash, and debt.