CleanSpace Narrows EBITDA Loss to $0.4M Amid Global Uncertainties and Tariff Risks
CleanSpace Holdings posted a robust 26% revenue increase in FY25, turning the corner to positive EBITDA and cash flow in the second half, driven by strong industrial market demand and operational efficiencies.
- 26% revenue growth to $19.8 million in FY25
- Positive EBITDA and cash flow achieved in H2 FY25
- Gross margin improved to 75% from 72%
- North America revenue surged 45%, led by industrial market strategy
- Operating expenses tightly controlled at $15 million
Strong Financial Turnaround
CleanSpace Holdings Limited (ASX, CSX) has delivered a notable financial performance for FY25, posting revenue of $19.8 million, a 26% increase over the prior year. This growth was complemented by a significant improvement in profitability metrics, with the company reducing its EBITDA loss from $3.9 million to just $0.4 million. Excluding one-off costs, CleanSpace was EBITDA and net profit positive, marking a clear inflection point in its financial trajectory.
The second half of FY25 was particularly encouraging, with CleanSpace achieving positive EBITDA and generating $2.2 million in cash flow. This turnaround reflects the successful execution of its industrial markets growth strategy and operational efficiencies that boosted gross margin to 75%, up from 72% the previous year.
Regional Growth Drivers
Geographically, CleanSpace’s growth was broad-based but with standout performance in North America, where revenue soared 45%. This surge was driven by the rollout of the new 'CleanSpace WORK' respirator and an expanded U.S. sales presence, underscoring the company’s strategic focus on industrial markets. Europe remained the largest revenue contributor at 61%, growing 18%, with strong gains in France, the UK, and the Nordics. Meanwhile, Asia Pacific and Rest of World regions grew 36%, fueled by emerging market opportunities in Southeast Asia and South America.
Product Mix and Operational Discipline
CleanSpace’s product sales mix continues to balance between respirators and consumables, with consumables, such as masks, filters, and accessories, accounting for 47% of total sales. This segment grew 27%, benefiting from a growing installed base and recurring revenue streams. Operating expenses remained tightly controlled at $15 million, essentially flat year-on-year, reflecting disciplined cost management that supports a self-funded growth model.
Outlook and Leadership Confidence
Looking ahead to FY26, CleanSpace’s board projects continued revenue growth exceeding 20%, sustained gross margins in the mid-70% range, and ongoing positive EBITDA and cash flow. The company plans to reinvest surplus cash into expanding sales teams, marketing, and research and development to maintain its competitive edge. CEO Gabrielle O’Carroll highlighted the smooth leadership transition in the second half of FY25 and expressed confidence in accelerating sustainable growth and delivering shareholder value.
Despite a cautious global economic backdrop and potential uncertainties around U.S. tariffs, CleanSpace remains vigilant but optimistic, positioning itself as an innovator and leader in the industrial powered air-purifying respirator sector.
Bottom Line?
CleanSpace’s FY25 momentum sets the stage for sustained growth, but investors will watch closely how global uncertainties and tariff impacts unfold.
Questions in the middle?
- How will CleanSpace navigate potential changes in U.S. tariff policies affecting its industrial sales?
- What impact will the leadership transition have on execution of growth initiatives in FY26?
- Can the company sustain its gross margin improvements amid scaling operations and expanding markets?
