How Smart Parking’s US Acquisition Propelled 41% Revenue Growth in FY25

A Year of Transformation and Expansion

Smart Parking Limited has delivered a standout financial performance for the year ended 30 June 2025, marking a pivotal chapter in its growth story. The company’s revenue surged 41% to $77.3 million, underpinned by both organic growth and a strategic acquisition that opened the door to the US market; the largest parking operations arena worldwide.

The acquisition of Peak Parking LLC for nearly $57 million in February 2025 was a game changer. This boutique US parking operator, with 134 locations across six states, contributed $10.2 million in revenue and $3.1 million in adjusted EBITDA in just four months post-acquisition. The deal not only expanded Smart Parking’s geographic footprint but also enhanced its technological edge by enabling deployment of proprietary ANPR (Automatic Number Plate Recognition) technology in the US, setting it apart from local competitors.

Robust Financial and Operational Metrics

Profit after tax rose 47% to $5.4 million, with earnings per share climbing 37% to 1.45 cents. Adjusted EBITDA jumped 47% to $20.5 million, reflecting strong operational leverage across key markets including the UK, New Zealand, and the newly acquired US business. The company’s portfolio of ANPR sites grew 26% to 1,799, continuing a seven-year trend of rapid expansion driven by both new customer wins and site installations.

International growth was a highlight, with significant progress in Europe and Australasia. New Zealand’s business saw a 62% revenue increase, supported by a 48% rise in parking breach notices issued. Germany and Denmark also recorded strong site growth and revenue gains, despite regulatory headwinds in Denmark that have shifted enforcement to manual processes. Switzerland was added as a fresh market in July 2025, signaling Smart Parking’s ambition to deepen its European presence.

Navigating Regulatory and Market Challenges

While the company expanded, it also made a strategic exit from Queensland, Australia, following government restrictions that ended private parking operators’ access to the motor vehicle register. This closure, though resulting in a modest EBITDA loss in FY25, is expected to be cash positive going forward as equipment is redeployed to more promising markets.

In the UK, Smart Parking adapted to a new industry-wide Code of Practice aimed at raising standards and transparency in private parking. Although the timing and final details of government regulations remain uncertain, the company’s established legal framework and operational scale position it well to benefit from these changes.

Strong Balance Sheet and Future Outlook

Smart Parking fortified its financial position with a $45 million equity raise to fund the Peak Parking acquisition and maintain liquidity. The company ended FY25 with $12.7 million in cash (excluding customer funds) and access to a $10 million revolving credit facility, underscoring its readiness for further acquisitions and organic growth.

Looking ahead, the company targets 3,000 ANPR sites by the end of 2028, driven by continued rollouts in the US, UK, Europe, and Australasia. The Technology division, while generating lower revenue as it shifts focus to higher-margin products, remains a strategic pillar supporting the Parking Management business.