Hipages Group (HPG) H1 2025 earnings summary

Executive summary

• Achieved key strategic milestones, including full migration of over 32,000 Australian and New Zealand tradie customers to new SaaS platforms and subscription models, driving recurring revenue and ARPU growth.

• Delivered continued growth in recurring revenues, EBITDA, and free cash flow, supported by a strong, debt-free balance sheet.

• Focused on enhancing customer engagement and retention through new features, go-to-market initiatives, and platform enhancements.

• Marketplace activity remained near record levels, with balanced tradie supply and homeowner demand driving increased connections and job volumes.

• Statutory net profit after tax was $0.1 million, down from $3.7 million in H1 FY24, which included a non-recurring gain.

Financial highlights

• Operating revenue grew 10% year-over-year to $40.6 million for H1 FY25; recurring revenue up 11% to $39.2 million, now 97% of total revenue.

• Monthly recurring revenue (MRR) up 14% to $6.8 million; ARPU up 9% to $2,267, with Australia at $2,374 (+8%) and New Zealand up 18% to $1,149.

• EBITDA before significant items up 4% to $8.7 million; EBITDA margin at 21%, down 1 ppt year-over-year due to non-recurring marketing spend.

• Net profit after tax before significant items at $0.1 million; free cash flow of $1.2 million, reversing a negative prior period.

• Closing cash and funds on deposit at $22.5 million, with no debt.

Outlook and guidance

• FY25 revenue target updated to $83–$84 million, underpinned by completed migrations and initiatives to boost engagement and retention.

• EBITDA margin expected to expand by 1–2 points to 23–24%; free cash flow guidance raised to $5–$6 million.

• Marketing spend to normalize at 24–25% of revenue for the full year.

• Guidance assumes no material deterioration in macroeconomic conditions.