Dubber Reports $10.7M Q4 Revenue, Hits Cashflow Breakeven Milestone
Dubber Corporation Limited has achieved underlying operating cashflow breakeven for the first time in its history in Q4 FY25, despite the looming impact of a major contract non-renewal. The company plans to offset margin losses through aggressive cost savings and revenue growth in FY26.
- Underlying operating cashflow breakeven achieved in Q4 FY25
- Reported revenue of $10.7 million for Q4, up 4% year-on-year
- VMO2 contract non-renewal to reduce gross margin by ~$7 million in FY26
- Cost savings program delivering $4 million with $2 million more anticipated
- Strong capital position with $15.9 million available funds including $5 million undrawn loan
A Milestone in Cashflow Management
Dubber Corporation Limited marked a significant financial milestone in the fourth quarter of fiscal year 2025 by achieving an underlying operating run-rate cashflow breakeven for the first time in its history. This achievement reflects the company’s disciplined approach to cost management and operational efficiency, setting a new baseline for sustainable operations.
Reported revenue for the quarter stood at $10.7 million, representing a 4% increase compared to the same period last year, although it was down 3% from the previous quarter. The full fiscal year revenue rose 9% to $42.2 million, underscoring steady growth despite market challenges.
Navigating Contract Loss and Margin Pressure
However, the company faces a headwind with the non-renewal of its VMO2 mobile recording contract, which is expected to reduce gross margin by approximately $7 million in FY26. This contract loss poses a material challenge to profitability and cashflow in the coming year.
Dubber is proactively addressing this by implementing a robust cost savings program that has already delivered $4 million in reductions, with an additional $2 million anticipated. These savings, combined with targeted revenue growth initiatives, are designed to close the margin gap and sustain the company’s cashflow breakeven position.
Operational Efficiencies and Growth Initiatives
The company’s operating cash-based costs decreased by 4% in Q4 FY25, with a total cash-based cost run-rate of $43.3 million. Direct cost efficiencies have improved gross margin to 73%, benefiting from scale and reductions in platform and AI service costs.
Dubber continues to invest heavily in research and development, rolling out new AI-driven features and enhancements to its recording platforms. Marketing efforts have been intensified to stimulate partner sales and expand the Communications Service Provider (CSP) partner base, which grew to over 240 partners by June 2025.
Capital Position and Legal Proceedings
The company remains well capitalised with total available funds of $15.9 million, including $10.9 million in cash and an undrawn $5 million loan facility. The Board has indicated no current intention to raise additional capital for working capital needs.
On the legal front, Dubber is actively pursuing recovery of funds related to past alleged misuse, with proceedings filed against former auditors and executives. While these efforts continue, the timing and quantum of any recoveries remain uncertain, representing a risk factor for investors.
Looking ahead, Dubber’s focus will be on executing its growth plans, driving recurring revenue, and maintaining cost discipline to deliver a breakeven operating cashflow run-rate in FY26 despite the contract loss.
Bottom Line?
Dubber’s Q4 FY25 breakeven milestone sets a foundation, but FY26 will test its ability to replace lost margin with growth and savings.
Questions in the middle?
- How quickly can Dubber grow revenue to offset the VMO2 contract loss?
- What is the potential financial impact and timeline of the ongoing legal recoveries?
- Will further cost reductions beyond the planned $2 million materialize as expected?