Tinybeans Reports 12% Subscription Revenue Growth and US$141k Positive Cash Flow

A Turning Point in Cash Flow

Tinybeans Group Limited (ASX, TNY), the global subscription platform for Millennial and Gen Z parents, has delivered a notable financial turnaround in its Q4 FY25 results. The company reported positive operating cash flow of US$141,000 for the quarter ended June 30, 2025, marking its second consecutive quarter in the black. This is a dramatic improvement from the US$1.22 million cash burn recorded in the same quarter last year, underscoring the effectiveness of recent cost-cutting and operational efficiencies.

Ending the quarter with a cash balance of US$1.71 million, Tinybeans is well-positioned to fund its upcoming growth initiatives and product development efforts in FY26. The company’s focus on reducing operating costs paid off, with a 58% year-on-year decrease in operating expenses, while still investing in new features and marketing.

Subscriber Growth and Revenue Momentum

Subscription revenue remains the backbone of Tinybeans’ business, with annual recurring revenue climbing 12% to US$3.32 million. The platform ended the quarter with 50,600 paid subscribers, a modest increase from 50,200 in the previous quarter, supported by a strong retention rate of 94%. This steady growth reflects the company’s success in converting free users to paid plans through targeted product enhancements and lifecycle marketing.

Notably, Tinybeans introduced the ‘Legacy’ subscription plan late in Q4, aimed at monetising long-term free users who want to preserve access to their family journals without the need for unlimited uploads. Early uptake of this lower-priced tier, alongside new in-app product levers, contributed to subscriber growth and reduced churn.

Marketing Push and Brand Recognition

Marketing efforts gained significant traction during the quarter. Tinybeans was named Apple App Store’s ‘App of the Day’ in over 100 countries, including key markets such as the US, Australia, Canada, and the UK. This accolade boosted organic traffic and new user acquisition, reinforcing the app’s relevance and quality experience.

The launch of the ‘Tiny Moments’ brand campaign in Australia, featuring broadcast video on demand (BVOD), podcasts, and influencer partnerships, further amplified brand awareness. Strategic partnerships with platforms like Babylist and inclusion in employment benefit programs expanded Tinybeans’ distribution channels in both Australia and the US.

Looking Ahead, Product Innovation and Growth Strategy

Looking forward, Tinybeans plans to build on its momentum with several key initiatives. A personalised in-app Photo Store is set to launch ahead of the holiday season, tapping into the $3.8 billion global market for physical photo products. This move aims to increase average revenue per user by offering photobooks and other tangible keepsakes.

The company will also introduce a new ‘Family’ subscription plan designed for larger families or users with expanded needs, complementing existing plans and potentially driving higher revenue tiers. Continued investment in product-led growth and marketing campaigns, including talent and influencer deals, will support subscriber acquisition and retention.

Additionally, Tinybeans is exploring unsolicited corporate opportunities that could accelerate growth and shareholder value, though these discussions remain preliminary.

CEO Perspective

CEO Zsofi Paterson highlighted the quarter’s achievements as a “step-change” for the business, emphasizing the company’s ability to deliver on its strategic objectives. She expressed optimism about Tinybeans’ future, aiming to become the leading family memory platform both online and offline.