Jcurve Solutions reported a robust second half in FY25, reversing earlier losses with a 41% revenue jump and positive EBITDA, setting the stage for renewed growth ambitions.
- 41% revenue growth in second half FY25
- Normalized EBITDA turns positive at $1.11 million in 2H
- Full year revenue down 11% to $11.34 million
- Customer attrition remains elevated due to economic pressures
- Completed migration to NextGen cloud platform
A Year of Two Halves
Jcurve Solutions Limited (ASX – JCS) has delivered a tale of two halves in its unaudited FY25 results, showcasing a strong turnaround in the second half that reversed earlier losses. While full-year revenue dipped 11% to $11.34 million, the company’s normalized EBITDA swung dramatically from a loss of $0.106 million in FY24 to a positive $0.926 million in FY25. This improvement was driven by a 41% revenue increase in the second half, reaching $6.63 million, alongside disciplined cost management and operational efficiencies.
Strategic Transformation and Cost Discipline
The company’s CEO, Chris King, highlighted FY25 as a pivotal year completing the initial phase of the “Let’s Grow” transformation program. Jcurve undertook rigorous cost reductions across payroll, marketing, IT, and other overheads, including plans to exit its Chatswood head office to better align with hybrid working models. These measures contributed to a 702% jump in normalized EBITDA from the first to second half, underscoring a shift from cost containment to growth focus.
Customer Metrics and Market Challenges
Despite the positive momentum, customer attrition remains a challenge with 21 cancellations in FY25, many linked to economic pressures and customers ceasing operations. However, the company grew its Annual Contract Value (ACV) by 8.4% in the second half to $24.43 million and increased recurring revenue as a percentage of ACV to 39%, up from 33%. New customer acquisition was moderate with 17 new clients added, but Jcurve aims to accelerate this in FY26 to achieve its target of 20% compound annual growth in ACV.
Product and Platform Advances
Jcurve successfully migrated all expense management customers to its NextGen cloud platform, a key milestone that positions the company to capitalize on growing demand for digital spend management. The Field Service Management segment also shows promise, competing well against major players like Oracle NetSuite. The company is refining its product portfolio and leveraging partnerships with Netgain, Zone & Co, Sprout HCM, and EzyCollect to drive top-line growth.
Looking Ahead
With a stronger balance sheet and improved cash flow, Jcurve is poised to reinvest in growth initiatives. The CEO expressed optimism about FY26, emphasizing a shift from cost management to revenue and margin expansion. The company’s focus on enhancing customer and team experience remains central to its strategy, aiming to reduce attrition and boost customer lifetime value amid ongoing economic headwinds.
Bottom Line?
Jcurve’s FY25 turnaround sets a promising foundation, but sustaining growth amid customer churn will be the true test in FY26.
Questions in the middle?
- Can Jcurve accelerate new customer acquisition to meet its 20% ACV growth target?
- How will ongoing economic pressures impact customer retention and revenue stability?
- What role will the NextGen cloud platform play in driving future product adoption and profitability?