AdNeo Limited reported a 14% rise in FY25 revenue driven by acquisitions, yet posted a $5.25 million net loss impacted by non-recurring items. Post-year-end capital raising and cost cuts position the company for growth.
- 14% revenue increase to $4.86 million in FY25
- Net loss widened to $5.25 million due to non-accrual of R&D grants and higher depreciation
- Second half FY25 showed strong operational improvements with 31.8% revenue growth
- Post-year-end $5.65 million capital raise and Learnt Global acquisition
- Debt reduced by $3 million through conversion and repayment
Revenue Growth Driven by Strategic Acquisitions
AdNeo Limited has reported a 14% increase in operating revenue for the financial year ended 30 June 2025, reaching $4.86 million. This growth was primarily fueled by the August 2024 acquisition of Oliver Grace Pty Ltd, which expanded AdNeo’s service offerings into professional and strategic marketing services. The acquisition helped offset the loss of revenue from the discontinued USS business, which was a drag on the prior year’s results.
Widening Net Loss Reflects One-Off and Non-Recurring Factors
Despite the revenue uplift, AdNeo’s net loss after tax widened significantly to $5.25 million from $1.31 million in FY24. The deterioration was largely due to the non-accrual of R&D grant income this year, which had contributed $817,000 in the prior period and is expected to be claimed in FY26. Additionally, depreciation and amortisation expenses increased by $685,000 due to capitalised software development costs, while one-off income and expense reversals related to the USS wind-up in FY24 also distorted year-on-year comparisons.
Operational Improvements Evident in Second Half
The second half of FY25 showed marked improvement, with operating revenue growing 31.8% compared to the first half. EBITDA losses narrowed dramatically by 91.4%, reflecting better cost control and operational efficiencies. This turnaround suggests that the company’s restructuring and integration efforts are beginning to bear fruit.
Post-Year-End Capital Raise and Acquisition Strengthen Balance Sheet
In August 2025, AdNeo completed a $5.65 million capital raise supported by both new and existing shareholders. This was coupled with the acquisition of Learnt Global, which boosts the group’s combined annual revenue to over $11 million. The company also implemented cost savings exceeding $2 million and reduced debt by $3 million through a combination of debt-to-equity conversion and repayments. These moves have substantially de-risked AdNeo’s financial position and set the stage for aggressive growth.
Looking Ahead, Growth and Cash Flow Focus
With a strengthened balance sheet and expanded service capabilities, AdNeo’s management is targeting aggressive growth while aiming to achieve cash flow positivity. The integration of Learnt Global and realization of R&D grant income in FY26 will be key factors to watch. Investors will be keen to see how these strategic initiatives translate into sustainable profitability and shareholder value.
Bottom Line?
AdNeo’s FY25 results reveal a company in transition; revenue growth and strategic acquisitions underpin a path to profitability, but execution risks remain.
Questions in the middle?
- When will the R&D grant income be recognized and how will it impact FY26 earnings?
- How effectively will AdNeo integrate Learnt Global to drive sustainable revenue growth?
- What are the risks and timelines associated with achieving cash flow positivity?