Airtasker Reports 15.8% Revenue Growth and $0.5M Free Cash Flow in Q2 FY25

Quarterly Performance Overview

Airtasker Limited (ASX:ART) has delivered another quarter of encouraging financial results, reporting a 15.8% increase in marketplaces revenue to $11.7 million for the second quarter of FY25. This growth contributed to a total group revenue of $13.6 million, marking an 11.4% rise compared to the prior corresponding period (pcp). Notably, the company achieved positive free cash flow of $0.5 million and operating cash flow of $1.0 million, reflecting a 40% improvement year-on-year.

The results underscore Airtasker’s ability to balance growth with cash generation, a critical factor as it scales its operations internationally.

International Expansion Momentum

The standout feature of Airtasker’s latest update is the explosive growth in its UK and US marketplaces. UK revenue nearly doubled, surging 95.2% on pcp, buoyed by a £4.0 million media capital investment from Channel 4, which expanded Airtasker’s advertising reach to 78% of the UK population. This media-for-equity partnership has been pivotal in driving a 60.9% increase in posted tasks and a 66.1% rise in gross marketplace volume (GMV) in the UK.

Meanwhile, the US marketplace experienced an even more dramatic uplift, with revenue up 278.6% on pcp. This surge follows strategic media capital injections totaling US$21.75 million from partners including Sinclair, Mercurius, iHeartMedia, and TelevisaUnivision. The rollout of the "Airtasker. Yeahtasker!" television campaign in 2Q25 has significantly boosted brand awareness and marketplace activity, with GMV up 136% year-on-year.

Australian Market and Financial Position

Airtasker’s established Australian marketplace continues to deliver steady double-digit revenue growth, up 12.8% on pcp to $11.0 million. The company reported a positive Australian net EBITDA of $2.0 million for 2Q25, although this figure is expected to dip in the coming quarter as brand marketing investments intensify during the peak season.

On the balance sheet front, Airtasker remains well-capitalised with $18.3 million in cash and term deposits. The company reaffirmed its guidance for positive group free cash flow for the full fiscal year 2025, signaling confidence in its operational and financial strategy.

Marketing Investments and Future Outlook

Airtasker’s growth strategy heavily leverages media capital partnerships, which provide non-cash advertising inventory in exchange for convertible notes. These arrangements have enabled the company to scale its UK and US operations without proportionally increasing fixed costs. However, the group EBITDA reflected a $6.3 million loss, primarily due to an $8.3 million net investment in new marketplaces, including significant non-cash marketing expenses.

CEO Tim Fung highlighted the strategic importance of these investments, emphasizing the long-term payback expected from brand marketing efforts. With over $51 million in media capital secured globally, Airtasker is positioning itself for accelerated international expansion in the coming years.

Investor Considerations

While Airtasker’s positive cash flow and revenue growth are promising, investors should monitor the effectiveness of its media capital strategy and the sustainability of its rapid international revenue growth. The company’s ability to convert increased brand awareness into lasting marketplace activity will be critical to achieving profitability at scale.