Urbanise Reports 4.2% Revenue Growth and 77% EBITDA Loss Improvement in FY2025
Urbanise.com Limited reported a 4.2% revenue increase and a 77% improvement in adjusted EBITDA loss for FY2025, driven by new contracts and a key partnership with NAB. The company ended the year cash flow positive with a strong balance sheet, setting the stage for a transformative product launch in 2026.
- FY2025 revenue rose 4.2% to $13.1 million
- Adjusted EBITDA loss narrowed by 77% to $475,000
- 42 new contracts added $930,000 in annual recurring revenue
- Strategic NAB partnership contributed $1.3 million ARR and $4.6 million upfront fees
- Positive cash flow achieved with closing cash of $15.9 million and no debt
Strong Financial Performance Amid Strategic Growth
Urbanise.com Limited (ASX – UBN) has delivered a solid FY2025 result, reporting total revenue of $13.1 million, up 4.2% from the previous year. This growth was underpinned by licence revenue increases and a notable 31.3% rise in professional fees, reflecting heightened activity in project delivery and customer-driven initiatives.
The company’s adjusted EBITDA loss shrank dramatically by 77% to $475,000, a clear sign of improved operational efficiency and disciplined cost management following a strategic review in 2024. Importantly, Urbanise achieved positive cash flow for the year, generating an average monthly cash inflow of $392,000 compared to a cash outflow in FY2024.
NAB Partnership – A Catalyst for Growth and Innovation
A standout feature of Urbanise’s FY2025 was the strategic partnership with National Australia Bank (NAB), which brought in $1.3 million in annual recurring revenue and $4.6 million in upfront fees. This collaboration is set to transform Urbanise’s product offering with the planned launch of a Data and Payments Integration Services (DPIS)-integrated product in 2026, designed to seamlessly connect Urbanise’s cloud software with NAB’s banking and payment services.
CEO Simon Lee highlighted the partnership as a “step change” for the company, emphasizing that the funding structure allows Urbanise to innovate without diverting resources from its core roadmap. The partnership also signals strong market validation of Urbanise’s technology and strategic positioning in the strata and facilities management sectors.
Segment Dynamics and Backlog Reduction
Urbanise’s two main business segments, Strata and Facilities Management (FM), showed mixed but encouraging trends. Strata licence revenue was impacted by a $743,000 reallocation to FM, yet still grew 5.8% excluding this adjustment. Strata’s annual recurring revenue (ARR) edged up 3%, with retention improving to 95%.
Facilities Management saw a 9.5% licence revenue increase, boosted by the reallocation and new customer wins, with ARR retention rising to 90.4%. Both segments experienced a significant reduction in backlog, reflecting successful project rollouts in the second half of FY2025.
Looking Ahead – FY2026 as a Transitional Year
Urbanise anticipates FY2026 will be a transitional period focused on delivering the NAB integration roadmap and launching the DPIS product. While the company expects operating cash flow to be negative due to upfront investment in the partnership, it targets returning to cash flow positivity by FY2027 as the new product gains market traction and business growth continues.
Cost discipline will remain a priority, alongside strategic growth initiatives in core markets and ongoing assessment of expansion opportunities. The strong closing cash position of $15.9 million and absence of debt provide a solid foundation for these ambitions.
Bottom Line?
Urbanise’s FY2025 results and NAB partnership set a promising foundation, but FY2026’s investment phase will test execution and cash flow resilience.
Questions in the middle?
- How smoothly will Urbanise execute the DPIS-integrated product launch in 2026?
- What impact will the NAB partnership have on Urbanise’s long-term revenue growth and margins?
- Can Urbanise sustain improved ARR retention and customer acquisition amid competitive pressures?
