Freelancer (FLN) H1 2025 earnings summary

Executive summary

• Achieved record half-year net profit after tax of $1.9 million in 1H25, reversing a prior loss, with robust cash flow and strong growth across all business segments.

• Revenue increased 18% year-over-year to $28 million, with gross marketplace value (GMV) at $439 million, and gross margins improved due to enhanced efficiency.

• Operating cash flow reached $6.8 million, up over 209% year-over-year, and cash balances rose to $26 million, supporting future growth.

• Added 2 million new users, up 17.5%, and saw record marketplace liquidity with 56 bids per project.

• No dividends declared for the period.

Financial highlights

• Net revenue grew 8.5% year-over-year to $27.1 million, with gross profit at $23.1 million and gross margin at 85.3%.

• Net profit after tax was $1.9 million, compared to a $1.0 million loss in 1H24.

• Operating cash flow margin was 25.2% of revenue in 1H25, up from 8.7% in 1H24.

• Cash and equivalents reached $26 million as of 30 June 2025, up 12.3% from December 2024.

• Disciplined cost management: admin costs down 3%, occupancy down 8%, and payroll broadly flat.

Outlook and guidance

• Targeting double-digit revenue growth and further gains in profit and cash flow for FY25, with a focus on AI-driven features and high-value verticals.

• Plans to further reduce costs in hosting and payments infrastructure, and improve customer acquisition and retention.

• Continued investment in product quality, Gen-AI tools, and global expansion.

• Projected continued profitability and positive cash flow in 2H25, supported by a structurally lower cost base and significant cash balances.