SenSen Reports $1.9M Operating Cash Flow on $14.1M Revenue in FY25
SenSen Networks has reported its first full year of positive operating cash flow, driven by strong growth in its Smart Cities segment and strategic cost reductions.
- Record full-year cash collections of $14.1 million, up 13%
- First-ever positive operating cash flow of $1.9 million for FY25
- Smart Cities revenue up 22%, excluding Gaming segment
- Overhead costs cut by 11%, supporting improved cash flow
- Major project deliveries in Montréal, Vancouver, and Brisbane
SenSen’s Financial Breakthrough
SenSen Networks Limited (ASX, SNS), a provider of AI-driven urban management solutions, has marked a significant milestone by reporting its first full year of positive operating cash flow for FY25. The company achieved $1.9 million in operating cash flow, a $3.2 million improvement compared to the prior corresponding period’s negative $1.3 million. This financial turnaround is underpinned by record cash collections of $14.1 million, representing a 13% increase over FY24.
Such a shift signals that SenSen’s strategic focus on sustainable growth and operational efficiency is bearing fruit, positioning the company more firmly in the competitive Smart Cities technology market.
Smart Cities Segment Drives Growth
The company’s Smart Cities division was the standout performer, with cash collections rising 22% year-on-year to $2.5 million, excluding the Gaming segment which SenSen exited in FY24. This growth reflects SenSen’s competitive edge in kerb management technology, where it has expanded its market presence notably in Australia and North America.
Key project milestones included the successful delivery and invoicing of a large-scale vehicle-mounted mobile enforcement system for Agence de mobilité durable de Montréal, with approximately $1.5 million in cash expected in the next quarter. Additionally, upgrades for the City of Vancouver and new contracts with the National Heavy Vehicle Regulator and Brisbane City Council demonstrate the company’s expanding footprint.
Operational Efficiency and Cash Position
SenSen also reported an 11% reduction in overhead costs, trimming $1.5 million from expenses compared to the prior year. This cost discipline has contributed to sustained positive operating cash flow for five consecutive quarters. The company ended the quarter with a net cash position of $0.7 million and access to $1.1 million in undrawn debt facilities, providing a solid financial foundation for future growth initiatives.
Notably, SenSen’s accelerated rollout of its SenPIC pole-insertable cameras for Brisbane City Council within a single quarter highlights its ability to rapidly execute on orders, a critical factor in scaling operations.
Global Expansion and Market Adoption
Beyond Australia and Canada, SenSen’s technology is gaining traction in the United States, with the City of Tacoma adopting its solutions, and in India, where trials are underway in Pune. The company’s AI platform continues to attract law enforcement and government agencies, including Northern Territory Police, Western Australia Police, and the Australian Criminal Intelligence Agency.
CEO Subhash Challa emphasized the company’s commitment to building a scalable and sustainable business, noting the satisfaction of achieving positive cash flow and the growing global adoption of SenSen’s technology.
Bottom Line?
SenSen’s first full year of positive cash flow and robust Smart Cities growth set the stage for accelerated expansion, but timely cash collection on major projects will be key to sustaining momentum.
Questions in the middle?
- How will SenSen manage cash flow timing given delayed payments from large projects like Montréal?
- What are the company’s plans to capitalize on its growing North American and Indian market presence?
- Can SenSen sustain cost reductions while scaling operations and technology upgrades?
