How Did FlexiRoam Flip FY25 from Loss to Profit in Just Six Months?

A Year of Two Halves

FlexiRoam Limited’s financial year ending 30 June 2025 was marked by a dramatic shift in fortunes. The company reported a full-year revenue decline of 8.6% to $13.58 million and a net loss after tax of nearly $2 million. However, these headline figures mask a significant operational reset that took place mid-year following a leadership change.

In December 2024, founder Jefrey Ong returned as interim CEO, inheriting a business burdened by an unsustainable cost base. The first half of FY25 reflected this challenge, with an EBITDA loss of $925,000 and a net loss after tax of $2.1 million. Recognising the need for decisive action, the new management team embarked on a disciplined cost-cutting and strategic refocus.

Operational Reset Drives Profitability

The second half of FY25 saw FlexiRoam slash operating expenses by 53%, from $5.1 million to $2.4 million. This aggressive cost discipline, coupled with a deliberate exit from lower-margin revenue channels, enabled the company to post a positive EBITDA of $1.5 million and a modest net profit after tax of $125,000 in H2. While revenue declined, the quality of earnings improved, setting a more sustainable foundation for future growth.

CEO Ong emphasised the strategic pivot towards higher-margin brand partnerships, embedding FlexiRoam’s connectivity solutions into the customer journeys of airlines, banks, insurance companies, and loyalty programs. This shift aims to build recurring, scalable revenue streams that can drive profitability in FY26 and beyond.

Financial Position and Capital Raising

Despite the operating loss, FlexiRoam’s cash position strengthened, ending FY25 with $1.6 million in cash and equivalents. Post-year-end, this improved further to $2.8 million, reflecting strong operating cash flows. The company also successfully raised $4.7 million through two rights issues during the year, bolstering its financial flexibility.

The auditor issued an unqualified opinion on the financial statements but highlighted a material uncertainty regarding the company’s ability to continue as a going concern, given the net current liabilities position and operating losses. The board remains confident, citing the operational turnaround and cash flow improvements as key mitigating factors.

Looking Ahead, Innovation and Growth

FlexiRoam’s outlook for FY26 is focused on leveraging the reset to scale its brand partnership programs and launch a new AI-assisted connectivity platform. Scheduled for release in Q2 FY26, this platform aims to simplify data plan activation and management for travelers while providing partners with enhanced integration tools.

However, the company faces ongoing risks including dependency on telecom network providers, potential regulatory changes across multiple jurisdictions, cybersecurity threats, and foreign exchange volatility. Execution of the growth strategy and maintaining financial discipline will be critical to sustaining momentum.

With a refreshed leadership team and a clearer strategic focus, FlexiRoam appears poised to translate its recent operational gains into sustained profitability, but investors will be watching closely for tangible progress in the coming quarters.