COSOL (COS) H1 2025 earnings summary

Executive summary

• Achieved strong HY 2025 performance with 17.8% revenue growth to AUD 57.8 million, driven by 10% organic growth, expansion in key markets, and successful integration of Toustone, which expanded digital/data and AI capabilities.

• Underlying EBITDA increased 17.6% to AUD 8.2 million, maintaining a 14.1% margin, while net profit after tax rose to AUD 4.05 million.

• Maintained consistent operating margins despite high revenue growth and investments in proprietary IP and AI capabilities.

• Interim fully franked dividend of AUD 0.01 per share declared, continuing the dividend track record.

Financial highlights

• Revenue reached AUD 57.8 million (up from AUD 49.1 million year-over-year), with underlying EBITDA at AUD 8.2 million and net profit after tax at AUD 4.05 million.

• Underlying NPAT grew 14.5% to AUD 4.9 million; underlying EPS up 5.3% to AUD 0.0247.

• Basic EPS: 2.28 cents; Diluted EPS: 2.13 cents.

• Underlying operating cash flow (excluding interest, tax, and acquisition costs): AUD 4.0 million, down 2.7% due to timing of receivables.

• Cash conversion was lower due to project timing, but current ratio improved.

Outlook and guidance

• Anticipates significant revenue and margin growth in H2, especially in North America and managed services, with a positive outlook for FY26 supported by a strong pipeline and continued investment in digital and AI solutions.

• Focus on embedding acquisitions, expanding digital and AI offerings, and leveraging cross-sell opportunities.

• Recent advisory project wins and pipeline provide confidence in continued organic growth.