Gathid Ltd reported a 142% surge in revenue for FY25 driven by its expanding software business, despite a continuing operations loss and ongoing dispute over the RightCrowd sale proceeds.
- 142% revenue growth from continuing software operations
- 178% increase in Annual Recurring Revenue to $1.935 million
- Loss of $3.17 million from continuing operations
- Disputed final consideration on $13.5 million RightCrowd sale
- Nine new enterprise contracts added in FY25
Strong Software Growth Drives Revenue Surge
Gathid Ltd has delivered a remarkable 142% increase in revenue for the financial year ended 30 June 2025, primarily fueled by its Gathid Software platform. This growth reflects the company’s strategic pivot following the sale of its physical security business, RightCrowd, which was completed in September 2023. The software segment’s Annual Recurring Revenue (ARR) soared by 178% to nearly $1.94 million, underscoring successful customer acquisition and contract expansions.
The company added nine new enterprise customers during FY25, a clear sign of growing market traction. The Board expressed confidence in sustaining this momentum into FY26, supported by a robust sales pipeline and recent contract wins.
Ongoing Challenges and Investment Costs
Despite the revenue gains, Gathid reported a loss of $3.17 million from continuing operations, a slight improvement from the prior year’s $3.39 million loss. The company increased investments in sales, marketing, and software development to support its growth ambitions. Additionally, costs related to the RightCrowd sale transaction and associated disputes weighed on profitability.
The sale of RightCrowd, valued at $13.5 million, remains subject to a dispute over the final consideration amount. Although an expert determination has been received, the disagreement persists, and the ultimate financial impact is yet to be resolved. This uncertainty means the reported gain on sale could be adjusted once the dispute is settled and the FY25 audit is completed.
Balance Sheet and Cash Flow Highlights
Gathid ended FY25 with $4.7 million in cash and cash equivalents, down from $7.4 million the previous year, reflecting increased operating expenses and investments. Trade receivables and contract liabilities also rose, consistent with the expanding software business. The company’s net tangible asset backing per share for continuing operations declined to 1.6 cents, reflecting ongoing losses and investments.
Industry Recognition and Outlook
Gathid’s progress was recognized with the Australian Information Security Association’s 2024 Cyber Security Award for Start-up of the Year, highlighting its growing brand presence. The Board remains optimistic about capitalizing on market opportunities as the company focuses on commercializing its software platform and scaling its customer base.
No dividends were declared for FY25, as Gathid prioritizes reinvestment to drive future growth. The company’s financial statements are currently unaudited and may be subject to adjustments upon audit completion.
Bottom Line?
Gathid’s software growth story is compelling, but resolution of the RightCrowd sale dispute will be pivotal for its financial clarity and investor confidence.
Questions in the middle?
- How will the ongoing dispute over RightCrowd sale proceeds ultimately impact Gathid’s financial position?
- Can Gathid sustain its rapid ARR growth while managing increased operational costs?
- What is the timeline for audit completion and potential adjustments to FY25 results?