Connexion Mobility Reports 14% Revenue Growth and 32% Profit Increase in FY25

Strong Financial Performance

Connexion Mobility Ltd has delivered a solid financial performance for the year ended 30 June 2025, reporting a 14% increase in revenues to US$11.19 million and a 32% jump in profit after tax to US$2.48 million. This growth reflects the company’s expanding footprint in the US automotive software market, particularly through its OnTRAC and Connexion platforms that support fleet and rental management for automotive original equipment manufacturers (OEMs) and franchised dealerships.

The company’s gross profit remained stable at around US$7.6 million despite increased costs associated with scaling its engineering and product teams. Connexion’s strategic decision to invest heavily in product development and team expansion, while expensing these costs as incurred, underscores its long-term growth ambitions.

Strategic Share Buyback and Capital Management

In a bid to enhance shareholder value, Connexion executed an on-market share buyback program during FY25, repurchasing over 83 million shares at an average price of A$0.0264 per share. This initiative aims to improve earnings per share by reducing the number of shares on issue without compromising the company’s growth strategy.

Management emphasized a balanced approach to capital allocation, prioritizing operational investments while opportunistically buying back shares when market conditions are favorable. The company’s strong balance sheet and consistent profitability provide the financial flexibility to pursue this dual strategy.

Operational Highlights and Market Position

Operationally, Connexion expanded its team significantly with minimal disruption, enhanced its core platforms with new features, and improved user experience within its Connexion Marketplace. The company also secured commercial partnerships, including a digital license and insurance verification solution, and broadened its OEM outreach.

Despite these advances, Connexion remains highly dependent on a single major customer, which accounted for approximately 99% of its revenue in FY25. This concentration presents a notable risk, as any change in this customer’s business or relationship with Connexion could materially impact future revenues.

Governance and Remuneration

The company maintains a strong governance framework with an experienced board and management team. Executive remuneration is closely tied to performance metrics such as earnings per share growth and customer diversification, aligning management incentives with shareholder interests. The company’s remuneration report was well supported at the 2024 AGM, reflecting shareholder confidence in its leadership.

Connexion’s financial statements received an unqualified audit opinion, reinforcing the credibility of its reported results.

Looking Ahead

Connexion Mobility’s strategy of combining a compelling SaaS tool with a growing dealership network positions it well for future growth. However, the company’s reliance on a single customer and the early stage of commercializing its marketplace partnerships suggest that investors should watch closely for diversification progress and network monetization outcomes.