Hipages Group (HPG) H2 2026 earnings summary

Executive summary

• Achieved strong FY26 financial and operational results, meeting guidance for revenue, EBITDA margin, and free cash flow, with 9% revenue growth to $90.6m, 17% EBITDA growth to $22.9m, and free cash flow up 66% to $9.4m.

• Transitioned from a marketplace to a multi-product platform, expanding into job management, payments, software tools, and insurance through the acquisition of a majority stake in VIZ Insurance, adding 4,500+ serviced businesses.

• Launched new AI-powered features, including AI receptionist, assistant, Smart Quotes, and integration with OpenAI ChatGPT, and completed migration to new pricing plans.

• Initiated an on-market share buyback, with up to 10% of issued share capital targeted and 400,000 shares repurchased to date, demonstrating confidence in financial strength.

• Maintained category leadership in ANZ home improvement platform space, with brand awareness at 68% among homeowners and 73% among trade businesses.

Financial highlights

• Total revenue increased 9% year-over-year to $90.6m; ARR up 8% to $95.6m.

• EBITDA rose 17% to $22.9m, with margin expanding to 25.3% (up 1.7ppt); gross margin at 88%.

• Free cash flow up 66% to $9.4m; free cash flow margin over 10%; closing cash balance reached $34.2m.

• Statutory NPAT was $15.0m (boosted by deferred tax asset recognition); pro-forma NPAT $6.1m, up 156%.

• Recurring revenue accounted for 98% of total revenue.

Outlook and guidance

• FY27 targets: revenue growth of 9-11%, EBITDA margin of 25-27%, and free cash flow of $11-13m, assuming stable macroeconomic conditions.

• Focus on sustainable growth, AI integration, product innovation, expanding value-added services, and disciplined M&A.

• Guidance incorporates VIZ Insurance at breakeven; upside potential from new verticals not included.

• Long-term goal to achieve 40–50% cash conversion on incremental revenue as scale increases.

• Strong balance sheet and market position support confidence despite macroeconomic uncertainty.