How hipages’ SaaS Shift Boosted Revenue 10% Despite Profit Dip
hipages Group reported a 10% revenue increase for FY25, driven by strong SaaS platform adoption and operational efficiencies, despite a 33% net profit decline influenced by prior year gains.
- 10% revenue growth to AUD 83.149 million
- 20% increase in EBITDA before significant items with 24% margin
- 33% net profit decline to AUD 2.390 million due to absence of prior non-recurring gains
- Successful migration of all Australian tradies to single SaaS platform hipages tradiecore
- Free cash flow surged 162% to AUD 5.619 million with no debt
Financial Performance Highlights
hipages Group Holdings Ltd (ASX, HPG) has released its audited results for the fiscal year ended 30 June 2025, reporting a solid 10% increase in total revenue to AUD 83.149 million. This growth was underpinned by a 14% rise in monthly recurring revenue (MRR) to AUD 7.37 million and a 9% increase in annual revenue per user (ARPU), reflecting the company’s successful transition to a subscription-based Software-as-a-Service (SaaS) model.
EBITDA before significant items rose 20% to AUD 19.628 million, improving the margin by 2 percentage points to 24%. However, net profit after tax declined by 33% to AUD 2.390 million, primarily due to the absence of a non-recurring gain of AUD 3.079 million recorded in the prior year related to the disposal of an equity-accounted investment.
Strategic SaaS Platform Migration
A key operational milestone was the completion of migrating all Australian tradie customers, over 33,000, to the single tradie platform, hipages tradiecore. This platform integrates lead generation with job management tools, offering tradies an end-to-end business management solution. Early indicators suggest this migration has enhanced tradie engagement and retention, positioning hipages for sustainable growth.
The New Zealand business, operating under Builderscrack, also transitioned fully to a subscription model, boosting revenue by 23% and ARPU by the same margin to NZD 1,190. Subscription tradie numbers remained stable at approximately 36,650 across both markets.
Robust Cash Flow and Balance Sheet
Free cash flow surged 162% to AUD 5.619 million, strengthening the Group’s cash position to AUD 26.901 million with zero debt. This robust cash generation provides financial flexibility to invest in growth initiatives and technology enhancements.
Executive Remuneration and Governance
The report includes detailed disclosures on executive remuneration, highlighting a framework aligned with shareholder value creation and strategic objectives. CEO Roby Sharon-Zipser and CFOO Jaco Jonker received short-term incentives reflecting a mix of financial and non-financial performance metrics, with remuneration structured to reward sustainable growth and innovation.
Outlook and Growth Initiatives
Looking ahead to FY26, hipages plans to leverage its SaaS platform foundation to drive further growth through enhanced lead pricing, improved matching algorithms, and self-service capabilities. The company is also embedding artificial intelligence across its products and operations to improve user experience and unlock new revenue streams. While the macroeconomic environment remains favorable, hipages acknowledges risks including marketplace dynamics, technology disruption, and regulatory compliance.
Notably, no dividends were declared for FY25, reflecting the company’s focus on reinvesting cash flow to support its strategic transformation and innovation pipeline.
Bottom Line?
hipages enters FY26 with a strengthened SaaS platform and cash position, but investors will watch closely how AI integration and pricing strategies translate into sustained growth.
Questions in the middle?
- How will hipages balance pricing increases with tradie retention amid competitive pressures?
- What measurable impact will AI integration have on tradie engagement and platform monetisation?
- When might hipages consider reinstating dividends given its improved cash flow and profitability?
