Freelancer Limited has posted a notable financial turnaround in the first half of 2025, reporting a net profit of $1.9 million on the back of 8.5% revenue growth and improved cash flow. The company’s strengthened balance sheet and strategic share acquisition position it well for future growth.
- Net profit after tax of $1.9 million, reversing prior loss
- Revenue growth of 8.5% to $27.1 million
- Cash reserves increased to $26 million, debt-free status maintained
- Acquisition of additional shares in Loadshift Holdings to 64.2% ownership
- No dividends declared; cost discipline and margin expansion evident
A Strong Financial Rebound
Freelancer Limited has delivered a compelling turnaround in its financial performance for the half year ended 30 June 2025. The company reported a net profit after tax of $1.9 million, a remarkable swing from a $1.0 million loss in the same period last year. This improvement was underpinned by an 8.5% increase in revenue, which rose to $27.1 million, reflecting solid growth across its core online marketplace and payment services.
Gross margins expanded during the period, benefiting from enhanced operational efficiency and a leaner cost structure. The company’s disciplined approach to cost management and operating leverage has clearly paid dividends, contributing to improved earnings quality and profitability.
Cash Flow and Balance Sheet Strength
Freelancer’s cash flow position also strengthened significantly, with operating cash inflows tripling to $6.8 million compared to the prior year. The group ended the period with $26 million in cash and cash equivalents, marking a 12.3% increase from December 2024 and maintaining a debt-free status. This robust liquidity provides Freelancer with a strong platform for strategic flexibility and potential growth initiatives.
Notably, the company invested $0.73 million to increase its stake in Loadshift Holdings Pty Ltd to 64.2%, signaling confidence in its strategic investments and potential synergies within its portfolio.
Operational and Geographic Footprint
Freelancer continues to operate primarily in Australia but maintains a global presence with staff and operations in the Philippines, United Kingdom, Argentina, United States, and Canada. The company’s two main segments; online marketplace and online payment services; both contributed to the revenue growth, with the marketplace segment generating the bulk of income.
The company’s foreign exchange gains, driven by a 6% appreciation in the Australian dollar against the US dollar, added $1.1 million in unrealised gains, further boosting the bottom line compared to a loss in the prior period.
Outlook and Risks
While the company has not declared any dividends for the period, it remains focused on sustaining profitability and cash flow improvements into the second half of 2025. The Directors report no new material risks, with the principal risks and uncertainties remaining consistent with those disclosed in the 2024 Annual Report.
Freelancer’s strong cash position and debt-free balance sheet provide a cushion against market volatility and operational challenges, though investors will be watching closely for how the company leverages its strategic investments and navigates competitive pressures in the online services sector.
Bottom Line?
Freelancer’s turnaround sets the stage for renewed investor confidence, but the market will watch closely for sustained momentum and strategic execution.
Questions in the middle?
- How will Freelancer leverage its increased ownership in Loadshift Holdings to drive future growth?
- What are the company’s plans regarding dividend policy given the return to profitability?
- How might foreign exchange fluctuations impact Freelancer’s earnings going forward?