Urbanise’s FY2026 Cash Flow Faces Pressure from Major NAB Partnership Investment

• FY2025 revenue up 4.2% to $13.1m, led by licence fees and NAB partnership
• NAB acquires 15% equity stake with potential for further investment
• Four consecutive quarters of positive operating cash flow, $5.5m generated in FY2025
• Strategic rollout of integrated Data and Payments Integration Services (DPIS) underway
• FY2026 expected to see negative cash flow due to DPIS investment, targeting positive cash flow return in FY2027

A Transformative Year for Urbanise

Urbanise.com Limited (ASX, UBN) has closed FY2025 on a strong note, reporting total revenue of $13.1 million, a 4.2% increase over the previous year. This growth was underpinned by solid licence fee income and a newly minted strategic partnership with National Australia Bank (NAB), which also included a significant equity investment. The company’s CEO, Simon Lee, described the year as transformative, highlighting disciplined cost management and a focus on recurring, high-quality software contracts.

NAB Partnership, A Strategic and Financial Milestone

In May 2025, Urbanise entered into a Commercial Partnership Agreement with NAB to deliver integrated Data and Payments Integration Services (DPIS) through Urbanise’s strata management platform. NAB’s initial commitment includes $4.6 million in payments during the first year, with a fixed annual fee and variable fees thereafter. As part of the deal, NAB acquired 15% of Urbanise’s shares at $0.747 per share, with an option to increase its stake by nearly 5% within 12 months of DPIS launch. This partnership not only brings upfront capital but also positions Urbanise to embed modern banking and payment capabilities directly into its software, streamlining financial workflows for strata managers.

Financial Performance and Cash Flow Highlights

Urbanise achieved positive operating cash flow for the fourth consecutive quarter, generating $5.5 million over the full year. The Q4 operating cash flow of $4 million included $4.3 million in upfront NAB partnership fees, which funded the initial build phase of the DPIS product targeted for release in FY2026. The company ended FY2025 with a robust cash balance of $15.9 million and no material debt, a significant improvement from $1.9 million the previous year. This financial strength provides a solid runway for the upcoming investment phase.

Regional Market Dynamics and Contract Wins

Urbanise secured 42 new contracts in FY2025, excluding NAB partnership fees, with $930,000 in annual recurring revenue (ARR) and $482,000 in professional fees. Growth was particularly strong in the APAC facilities management segment, where ARR more than doubled compared to FY2024. However, the company faced challenges in New South Wales due to regulatory changes and a reduced sales presence, which temporarily slowed new contract wins. In the Middle East, sales cycles remained elongated, but Urbanise is actively expanding its pipeline, especially in education and facilities management sectors.

Looking Ahead, Investment and Growth Strategy

Urbanise expects FY2026 to be a year of upfront investment, particularly in rolling out the DPIS integration with NAB, which will likely result in negative operating cash flow. Nevertheless, management is confident in closing FY2026 with a positive cash balance and aims to return to positive operating cash flow by FY2027. The company plans to continue disciplined execution, deepen platform capabilities, and pursue growth in core markets, leveraging the strategic partnership as a catalyst for future expansion.

Bottom Line?

Urbanise’s FY2025 momentum and NAB partnership set a promising foundation, but FY2026’s investment phase will test its cash flow resilience.

Questions in the middle?

• How quickly will the DPIS integration with NAB translate into recurring revenue growth?
• What impact will regulatory changes in New South Wales have on Urbanise’s sales recovery?
• Can Urbanise sustain its positive cash flow trajectory beyond FY2027 amid competitive pressures?