Xref (XF1) H2 2025 earnings summary

Executive summary

• Achieved a $5 million turnaround in EBITDA, moving from a loss to a positive $2.5 million year-over-year, a 237% increase, driven by a strategic shift to a SaaS subscription model and operational streamlining.

• Revenue grew 7% to $21.3 million, now largely subscription-based, outperforming previous credit usage models.

• Annual Recurring Revenue (ARR) rose 29% to $19.3 million, with 95% of clients on SaaS contracts and 35% using the new platform.

• Streamlined operations to a single technology platform and product brand, reducing overheads and simplifying the business.

• Secured a $3.6 million strategic placement, strengthening the balance sheet and supporting growth plans.

Financial highlights

• Total revenue grew 7% to $21.3 million, with $16.8 million from SaaS contracts and $2.4 million from credits.

• EBITDA improved by 237%, from a negative $2.4 million to a positive $2.5 million year-over-year.

• Net loss after tax narrowed by 61% to $2.2 million.

• Operating cash flow turned positive, generating $1.3 million.

• Revenue per employee increased from $163,000 to $217,000 as headcount reduced from 102 to 74.

Outlook and guidance

• Expecting to see full benefits of cost reductions in FY2026 as one-off costs are not recurring.

• Focused on driving new business and revenue growth through self-sign-up, expanded product offerings, and platform consolidation.

• No plans for additional equity raises; debt to be paid down from operational cash flow.

• Positive operating cash flow expected to continue, with a 12-month cash runway at FY2025 exit.

• Expansion of API integrations and AI toolsets to drive automation and new revenue streams.