Hipages Group Holdings Ltd (ASX: HPG) reported a 17% year-over-year increase in EBITDA to AUD 22.9 million for the 12 months ended June 30, 2026, alongside a 66% rise in free cash flow to AUD 9.4 million.
Revenue grew 9% to AUD 90.6 million, with annualized recurring revenue up 8% at AUD 95.6 million and monthly recurring revenue rising 8% to AUD 8 million. The company’s EBITDA margin expanded by 1.7 percentage points to 25.3%, while statutory net profit after tax surged to AUD 15 million from AUD 2.4 million a year earlier, driven by the recognition of previously unrecognized deferred tax assets. Pro forma net profit after tax increased 156% to AUD 6.1 million.
Free cash flow margin exceeded 10%, up from below that level in FY2025, with a 50% free cash flow through rate—meaning every AUD 1 of growth revenue generated AUD 0.50 in free cash flow. The company ended the period with a cash balance of AUD 34.2 million and a debt-to-equity ratio of 0.18.
Operational metrics showed over 60,000 serviced businesses, up 10% year-over-year, including approximately 4,500 from the VIZ Insurance acquisition. Subscription businesses totaled 36,400 at June 30, with average revenue per user rising 9% to AUD 2,475. Recurring revenue accounted for 98% of total revenue, while operating expenses fell to 75% of revenue, with sales and marketing costs declining to 12% and 24% of revenue, respectively. Technology spend decreased to 23% of revenue from 24% in FY2025.
Job management monthly active users reached 7,200 in June, an 89% increase year-over-year, despite Australian job volumes being about 3% lower due to subdued consumer confidence. Brand awareness stood at 68% among homeowners and 73% among trade businesses.
Hipages authorized a 13 million-share buyback program and has repurchased approximately 400,000 shares to date. The stock rose 4.9% to AUD 0.86 following the results, trading about 17.8% above its 52-week low of AUD 0.68 and 42.7% below its 52-week high of AUD 1.50.
For FY2027, management guided for revenue growth of 9%–11%, with EBITDA margin between 25% and 27%, free cash flow of AUD 11 million to AUD 13 million, and a cash conversion rate of 40%–50% on incremental revenue.
