Kelly Partners Accelerates Global Growth with 22.8% Revenue Surge in 1H25

Strong Financial Performance Amid Strategic Expansion

Kelly Partners Group Holdings Limited (ASX: KPG) has delivered a compelling first half of fiscal 2025, reporting a 22.8% increase in revenue to $64.9 million, up from $52.9 million in the prior corresponding period. This growth was driven by a combination of acquisitions and organic expansion, with acquired revenue contributing nearly 19% and organic growth accounting for 4% of the increase.

The company’s underlying NPATA rose 12.0% to $4.9 million, reflecting solid profitability despite ongoing investments to support long-term growth. Underlying EBITDA before AASB16 adjustments increased by 11.2% to $20.4 million, though the EBITDA margin softened slightly to 26.8%, impacted by the integration of newly acquired US businesses.

International Footprint Expands, US Market Gains Traction

Kelly Partners continues to execute its vision of becoming Australia’s global accounting firm for private business owners. The group now operates across Australia, Hong Kong, India, and the United States, with the US market rapidly growing to represent between 12.2% and 15.2% of total group revenue, or approximately $15.9 million to $19.9 million annually.

Notably, the August 2024 partnership with a Florida-based CPA firm, generating $10.8 million to $12.5 million in revenue, marked a significant milestone in the US expansion strategy. This partnership, along with others in California and Texas, underscores the appeal of Kelly Partners’ Partner-Owner-Driver® model, which retains existing owners as equity partners, fostering continuity and alignment.

Acquisitions Fuel Growth and Market Positioning

During 1H25, Kelly Partners completed four acquisitions spanning the US, UK, and Australia, adding an estimated $14.4 million to $17.1 million in annual revenues. These deals represent up to 15.8% of the group’s FY24 revenue base and are integral to the company’s growth trajectory. The acquisitions also expanded the group’s office footprint to 35 locations globally, including new offices in St Petersburg, Florida, and Cary, North Carolina.

The group’s active client base now exceeds 25,000, providing a substantial platform for cross-selling and network effects. The company also reported a strong Net Promoter® Score of +72, significantly outperforming the industry average, highlighting high client satisfaction and loyalty.

Investing for the Future

Kelly Partners has secured $22 million in growth funding from Westpac as of June 2024, supporting ongoing acquisitions, partner buy-ins, and infrastructure investments. The company is also advancing its digital capabilities, with a client app rollout imminent to enhance engagement and service accessibility.

Despite ceasing dividend payments in February 2024, Kelly Partners has returned significant value to shareholders since its 2017 IPO, delivering a total shareholder return of approximately 1,000%, driven by share price appreciation and prior dividends.

Founder and CEO Brett Kelly emphasised the company’s long-term vision: "We are building Australia’s global accounting firm for private business owners, investing heavily in people, brand, and digital infrastructure to capture growth opportunities in key markets, particularly the US and UK." He highlighted the strength of the Partner-Owner-Driver® model as a differentiator in attracting and integrating quality accounting firms.