Connexion Mobility Posts 7% Net Profit Rise with 3% Revenue Growth in Q4 FY25
Connexion Mobility reported steady revenue growth and a 7% increase in net profit before tax for Q4 FY25, driven by expanding SaaS subscriptions and strategic product enhancements.
- Revenue up 3% to $2.9 million, marking 11 consecutive quarters of growth
- Net profit before tax increased 7% quarter-on-quarter to $0.9 million
- Subscription-based SaaS revenue grew steadily, supported by new dealership subscriptions
- Continued R&D investments and new integrations with partners like Modives
- Strong balance sheet with $5.9 million in net cash and ongoing share buybacks
Steady Financial Momentum
Connexion Mobility Ltd has delivered a solid quarterly performance for the period ending 30 June 2025, continuing its trajectory of consistent revenue growth. The company reported total revenue of $2.9 million, a 3% increase over the previous quarter, marking its eleventh consecutive quarter of rising top-line figures. Gross profit remained steady at $1.9 million, while net profit before tax rose 7% to $0.9 million, reflecting improved operational efficiency and increased service revenue.
Expanding SaaS Footprint
The growth was primarily driven by Connexion’s subscription-based Software-as-a-Service (SaaS) platforms, OnTRAC and Connexion, which serve US automotive original equipment manufacturers (OEMs) and franchised dealerships. The company added approximately 40 net new subscriptions and trials during the quarter, up from around 30 in the prior period, signaling healthy market traction. Subscription revenue, now at $2.1 million, has increased for thirteen consecutive quarters, underscoring the platform’s growing adoption.
Strategic Product Enhancements and Partnerships
Connexion continues to invest in research and development, focusing on features that resonate with OEMs and large dealer groups. Recent efforts include enhancements in paid rental, reporting and analytics, and integration with Modives’ digital license and insurance verification system, which is slated for commercial launch in early FY26. Other partnerships, such as with Tollaid and OnDemand, also saw subscription growth, while beta testing progressed with UVeye and Privacy4Cars integrations.
Capital Management and Outlook
The company maintains a robust financial position with $5.9 million in net cash and investments and no debt. Connexion repurchased 18.4 million shares during the quarter, continuing a buyback program aimed at enhancing shareholder value without compromising growth investments. Management emphasized that internal reinvestment initiatives are fully funded, with surplus capital being evaluated for potential mergers and acquisitions to diversify and strengthen earnings streams.
Looking Ahead
Connexion’s mission to become the central platform connecting fleet owners to the future of mobility remains on track. While the company has commercialized its loaner vehicle product, it aims to expand into shuttle and ridehail services, broadening its market scope. With a growing user base, ongoing product innovation, and strategic partnerships, Connexion is well-positioned to capture a larger share of OEM and dealership software spending in the automotive retail sector.
Bottom Line?
As Connexion deepens its market presence and explores M&A opportunities, investors will watch closely for signs of accelerated growth and diversification.
Questions in the middle?
- How will Connexion’s integrations with Modives and other partners impact near-term revenue?
- What potential acquisitions is Connexion considering to expand its mobility software footprint?
- Can the company accelerate OEM-level sales beyond courtesy transportation to drive faster growth?
