Xref (XF1) H1 2026 earnings summary

Executive summary

• Completed transition to a SaaS-based Employer Intelligence Platform, now 54% of ARR, embedding services across the full employee lifecycle and HR technology stack, eliminating seasonality and increasing revenue predictability.

• Achieved strong platform migration: 181 clients migrated, 124 new clients onboarded, and active clients increased 54% year-over-year to 843.

• Strategic shift to multi-year SaaS contracts and auto-renewals, resulting in more predictable and resilient revenue streams.

• Significant operational efficiencies and scalability achieved through AI integration across development and support.

• Positioned as a high-performance, globally scalable platform with a focus on the full employee lifecycle from hire to retire.

Financial highlights

• Total revenue for H1 FY26 was $10.2m, with new platform revenue up 58% year-over-year to $4.2m.

• EBITDA was $1.3m, with adjusted EBITDA up 904% year-over-year; positive operating cash flow and net loss after tax of $660,059.

• Operating expenses reduced by 14% to $9.9m, driven by efficiency gains, AI adoption, and a 13% decrease in wages.

• Cash balance at 31 December 2025 was $2.8m; debt facility reduced by $0.9m during the half.

• Revenue churn remains at 15%, attributed to market pressures, competition, and budget constraints.

Outlook and guidance

• Focus on migrating remaining 315 legacy clients, deepening product adoption, and accelerating client acquisition.

• Targeting 300 new clients, 20% increase in platform adoption, and maintaining 80%-85% retention rate.

• Emphasis on margin expansion, AI efficiency, SaaS migration, and upsell opportunities through Trust Marketplace and Engage.

• No further capital raises planned; organic debt reduction and operational resilience prioritized.

• Deferred revenue expected to fall as clients reach original subscription end dates, with larger renewals anticipated in future periods.