Urbanise Resolves Colliers Dispute Amid License Revenue Pressure

Stable Revenue Amid Market Adjustments

Urbanise.com Limited (ASX: UBN), a cloud-based SaaS provider for strata and facilities management, delivered a steady financial performance in Q3 FY2025 with total revenue of $3.1 million, essentially flat compared to the prior corresponding period. Recurring revenue remained a strong pillar, accounting for over 92% of total income, underscoring the company’s subscription-based business model resilience.

While license revenue saw a modest 2.6% decline to $2.9 million, this was largely attributed to customer attrition and the strategic discontinuation of low-margin pass-through revenue from third-party software in the facilities management segment. Notably, underlying strata license fees grew by 7.3% when adjusted for revenue reallocation, signaling healthy demand in Urbanise’s core Australian strata market.

Contract Wins and Market Expansion

During the quarter, Urbanise secured 13 new contracts, generating $275.5k in annual recurring revenue (ARR) and $211.6k in professional fees. These wins spanned Australian strata managers, facilities management service providers, and asset owners, reflecting the company’s diversified customer base across Australasia, the Middle East, and South Africa. Year-to-date contract wins total $838.6k ARR and $425.6k in professional fees, indicating ongoing momentum in client acquisition and implementation services.

Cash Flow Strength and Debt-Free Position

Urbanise achieved its third consecutive quarter of positive operating cash flow, generating an average monthly cash inflow of $162k. This improvement was driven by enhanced cash collections, including recovering $0.4 million in overdue receivables from Middle East customers, and disciplined cost management initiatives initiated in FY2024. The company’s cash balance increased by $485k to $3.2 million, its highest since December 2023, while maintaining a clean balance sheet with no material debt.

Resolution of Colliers Dispute

A significant development during the quarter was the resolution of a contractual dispute with Colliers Australia. Urbanise reached a confidential settlement agreement, resulting in a commercial-in-confidence payment to the company. This settlement effectively closes the dispute and termination issues, allowing both parties to move forward without ongoing legal distractions.

Strategic Partnerships and Outlook

Looking ahead, Urbanise is actively progressing integration partnerships with financial institutions to enhance its Strata platform’s value proposition. These partnerships aim to embed modern financial services tailored to strata managers and service providers, streamlining payment processing and unlocking new revenue streams. The company targets completing these partnerships within the current financial year, which could be a catalyst for growth.

CEO Simon Lee emphasized the company’s focus on cash flow breakeven for FY2025, a target Urbanise remains on track to achieve. The combination of steady revenue, improved cash flow, and strategic dispute resolution positions Urbanise to consolidate its leadership in the SaaS strata and facilities management markets.