Hubify’s EBITDA Doubles to $0.35m as Recurring Revenue Hits 87% of Total
Hubify Limited has turned the corner with a statutory loss narrowing to $813,909 in FY25, alongside a 108% surge in EBITDA and a robust cash position. The company’s strategic pivot to recurring managed and professional services underpins its renewed financial health.
- Statutory loss narrowed to $813,909 from $4.72 million in FY24
- EBITDA rose 108% to $0.35 million driven by cost cuts and recurring revenue
- Revenue declined 9% to $17.9 million due to shedding non-core customers
- Recurring revenue maintained at 87% of total revenue
- Debt-free balance sheet with $2.8 million in cash and term deposits
Financial Turnaround Amid Strategic Shift
Hubify Limited (ASX – HFY) has reported a marked improvement in its financial performance for the year ended 30 June 2025. The company reduced its statutory loss after tax to $813,909, a significant contraction from the $4.72 million loss recorded in the previous year. This turnaround is underpinned by a strategic focus on sustainable, recurring revenue streams and disciplined cost management.
Despite a 9% decline in total revenue to $17.9 million, the company’s EBITDA more than doubled, reaching $0.35 million, a 108% increase year-on-year. This growth was driven by a deliberate exit from non-core and less profitable activities, alongside a shift towards managed services and professional IT solutions, including cybersecurity and AI advisory.
Recurring Revenue and Customer Growth
Hubify’s recurring revenue now accounts for 87% of total revenue, reflecting the company’s successful transition into a managed service provider (MSP) model. The onboarding of 31 new customers contributed approximately $1.95 million in annualised contracted recurring revenue, highlighting effective sales and marketing execution.
Managed services remain the largest revenue contributor, growing 4%, while professional services surged 42%, signaling strong demand for the company’s expanded technology offerings. This transformation from a mobility reseller to a full-service technology solutions provider appears complete, positioning Hubify well in a market increasingly focused on digital transformation and cybersecurity.
Robust Balance Sheet and Cash Flow
Financially, Hubify closed FY25 with a healthy cash balance of $2.8 million, including $0.8 million in term deposits, and remains debt-free. The company generated positive operating cash flow of $0.35 million, consistent with its EBITDA performance. This strong liquidity provides a solid foundation for both organic growth and potential acquisitions.
The Board and management emphasize the company’s robust, debt-free balance sheet as a key enabler to unlock further operating leverage and capitalize on emerging opportunities, particularly in AI and cybersecurity, sectors experiencing heightened investment from Australian SMEs.
Risks and Outlook
Hubify operates in a competitive and rapidly evolving technology landscape, with risks including macroeconomic pressures, supplier dependencies, cyber threats, and reliance on key personnel. The company’s risk management framework and focus on scalable, recurring revenue streams aim to mitigate these challenges.
While no dividends were declared, the company’s strategic repositioning and improved financial metrics suggest a pathway to sustainable profitability. Investors will be watching closely to see how Hubify leverages its momentum and balance sheet strength to drive growth in FY26 and beyond.
Bottom Line?
Hubify’s FY25 results mark a pivotal step from loss to profitability, setting the stage for growth amid evolving technology demands.
Questions in the middle?
- How will Hubify balance organic growth with potential acquisitions in the near term?
- What impact will AI and cybersecurity investments have on future revenue and margins?
- Can the company sustain its high recurring revenue ratio while expanding its customer base?
