hSenid Business Solutions (HBS.N0000) Q4 2025 earnings summary

Executive summary

• Achieved 33% year-over-year ARR growth, reaching $4.1 Mn exit ARR at end of 4Q FY25, with 1 Mn+ global users and churn at 5%.

• Revenue for 4Q/Q1 FY25 was LKR 500 Mn, up 15% YoY, driven by PeoplesHR Cloud and new deal momentum.

• Free cash flow turned positive in the quarter, with EBITDA margin improving to 7%.

• Net profit for the quarter was LKR 3 Mn, reversing prior losses, with EPS at LKR 0.01.

• PeoplesHR Cloud accounted for 96% of new deals, with strong on-prem to cloud migrations.

Financial highlights

• Total revenue for FY25 was LKR 1,818 Mn, up 19% YoY; 4Q/Q1 revenue was LKR 500 Mn, up 15% YoY.

• Gross profit margin improved to 48% in 4Q FY25; gross profit for the quarter rose 34% YoY to LKR 242.1 Mn.

• Net profit for the quarter was LKR 3.2 Mn, reversing a loss of LKR 125.8 Mn in Q1 2024.

• Basic EPS for the quarter was LKR 0.01, compared to a loss per share of LKR 0.45 in Q1 2024.

• Cash and bank balances at quarter-end were LKR 234.1 Mn, down from LKR 319.9 Mn a year ago.

Outlook and guidance

• Focus on high-potential markets, industry-aligned partnerships, and innovation-led growth, including AI integration.

• Strategic workforce planning and capability-building initiatives to support future growth.

• Optimism for continued ARR growth, improved employee productivity, and cost efficiencies in FY2026.