RPMGlobal (RUL) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of AUD 58.2 million and underlying EBITDA of AUD 8.2 million, with strong software sales growth and a strategic shift to a pure-play software model following the divestment of the Advisory division to SLR Consulting for AUD 63 million.

• Software business saw TCV sales up 64% year-over-year by January, with ARR at AUD 65 million as of February 2025 and four new global framework agreements signed.

• The divestment is expected to simplify the business, enhance appeal to software-focused investors, and all net proceeds will be returned to shareholders via capital return.

• Board expects the transaction to close early Q4 FY2025, with a renewed focus on software growth and operational simplification.

• Net profit for the half was AUD 4.7 million, impacted by the absence of a prior period one-off royalty sale and current period restructuring costs.

Financial highlights

• Revenue for 1H FY2025 was AUD 58.2 million, up 10% year-over-year; underlying EBITDA rose 21% to AUD 8.2 million.

• Software revenue grew 6.8% year-over-year to AUD 37.7 million; Advisory revenue rose 15.4% to AUD 20.2 million.

• Cash balance as of February 2025 was AUD 22.9 million, with no debt.

• $6.9 million spent on share buyback in 1H2025.

• Net tangible assets per share decreased to 12.2 cents from 13.3 cents a year ago.

Outlook and guidance

• FY2025 financial guidance withdrawn due to Advisory divestment; new guidance to be issued after transaction closes in early Q4 FY2025.

• Focus will shift entirely to the software business, with expectations of continued strong growth and simplification of operations.

• Buyback program to be restarted post-transaction, reflecting confidence in undervalued stock.