COSOL Limited reported a robust 15% revenue increase in FY25, bolstered by organic growth and the strategic acquisition of Toustone, enhancing its AI capabilities. The company is poised for continued expansion with a focus on multi-year contracts and proprietary software solutions.
- 15% revenue growth driven by 10% organic increase and Toustone acquisition
- 7% rise in underlying EBITDA despite margin pressures
- Expansion of AI-powered Asset Management as a Service platform
- Refinanced debt facility with $12.8 million headroom for growth
- Strong recurring revenue from multi-year contracts with blue-chip clients
COSOL’s FY25 Performance Overview
COSOL Limited has delivered a solid financial performance for the fiscal year ended June 2025, reporting a 15% increase in revenue to $116.8 million. This growth was underpinned by a healthy 10% organic expansion complemented by the acquisition of Toustone, a move that significantly bolstered COSOL’s data and AI capabilities. Underlying EBITDA rose by 7% to $16.8 million, reflecting strong operational momentum despite some margin compression due to revenue mix shifts.
Strategic Acquisition and AI Integration
The acquisition of Toustone marks a pivotal step in COSOL’s evolution, accelerating its position as a global leader in Enterprise Asset Management (EAM). Toustone’s advanced AI and data analytics solutions have been integrated into COSOL’s proprietary Asset Management as a Service (AMaaS) platform, enabling enhanced predictive maintenance and real-time asset performance insights. This integration supports COSOL’s strategy to transition customers from traditional asset management to a more scalable, data-driven service model.
Recurring Revenue and Customer Base Expansion
COSOL’s recurring revenue streams now account for approximately 60% of total revenue, driven by multi-year managed services contracts with a diversified blue-chip client base. The company’s proprietary software products, OnPlan and RPConnect, continue to provide a competitive edge by streamlining asset management processes and improving data accuracy. Notably, COSOL has expanded its footprint in key sectors such as Natural Resources, Energy & Water, and Infrastructure, with 27 customers now contributing over $1 million in annual revenue each.
Financial Position and Capital Management
In FY25, COSOL refinanced its banking facilities, increasing its total borrowing capacity to $38.9 million and securing $12.8 million in headroom to fund future growth initiatives. The company’s disciplined capital management has resulted in an 85% cash conversion rate of EBITDA, providing flexibility to support ongoing investments in technology and market expansion. While net debt leverage increased temporarily due to the Toustone acquisition, management expects this to improve as EBITDA grows and debt repayments continue.
Outlook and Growth Drivers
Looking ahead to FY26, COSOL anticipates sustained high single-digit organic revenue growth and double-digit EBITDA expansion. The company plans to deepen its AI investments and further embed its AMaaS platform across existing and new blue-chip clients, leveraging its strong industry expertise and proprietary technology. COSOL’s focus on transforming asset management through digital innovation positions it well to capitalize on market trends such as aging infrastructure, regulatory compliance demands, and the increasing need for predictive maintenance solutions.
Bottom Line?
COSOL’s FY25 results set the stage for accelerated growth, with AI-driven services and strategic acquisitions shaping its future trajectory.
Questions in the middle?
- How will COSOL manage margin pressures amid rapid revenue growth and acquisitions?
- What are the expected synergies and integration timelines for Toustone’s AI capabilities?
- How will COSOL expand its multi-year contract base in competitive global markets?