How Veris Turned Around FY25 with $97.2M Revenue and Digital Acquisitions
Veris Limited has reversed its FY24 loss to post a $2.0 million profit before tax in FY25, driven by digital growth and strategic acquisitions. The company’s focus on higher-margin consulting and advisory services underpins a positive outlook for FY26.
- FY25 revenue rose to $97.2 million, up from $92.6 million in FY24
- Returned to profitability with $2.0 million profit before tax after prior year loss
- Digital and spatial services now contribute over 25% of total revenue
- Acquisition of Mesh Livable Communities and 50% stake in Parsel platform
- Strong cash balance of $16.6 million supports ongoing transformation and M&A
A Turnaround Year for Veris
Veris Limited (ASX – VRS) has delivered a notable financial turnaround in FY25, reversing a $4.4 million loss in FY24 to report a $2.0 million profit before tax. Revenue climbed to $97.2 million, reflecting a 5% increase year-on-year, while gross margins expanded significantly to 36.5%, up from 32.6% the previous year. This improvement was underpinned by a strategic pivot towards higher-value digital and spatial services, which now account for over a quarter of the company’s revenue.
Strategic Acquisitions Fuel Digital Growth
Central to Veris’ transformation has been the acquisition of Mesh Livable Communities, a Melbourne-based urban planning and landscape consultancy, and a 50% stake in Mesh’s digital platform, Parsel. Parsel is a subscription-based solution that streamlines infrastructure and land planning, offering clients a digital-first approach that reduces costs and errors. This acquisition not only broadens Veris’ digital offerings but also enhances recurring revenue streams and cross-selling opportunities within its consulting and advisory services.
Robust Financial Position and Shareholder Returns
Veris maintains a strong balance sheet with a cash balance of $16.6 million, providing flexibility for further strategic investments and acquisitions. The company declared a fully franked dividend of 0.2 cents per share, marking a return to shareholder distributions after a period of reinvestment. Additionally, a disciplined capital management program has returned over $3.2 million to shareholders since FY23, signaling confidence in the company’s growth trajectory.
Operational and Cultural Highlights
Beyond financials, Veris has made significant strides in safety, diversity, and Indigenous participation. The company’s Total Recordable Injury Frequency Rate (TRIFR) improved markedly, reflecting a culture shift towards personal ownership of safety. Veris also strengthened its alliance with WumaraGroup, an Indigenous-owned firm, supporting economic empowerment and expanding Indigenous participation in its projects. Diversity initiatives and leadership development programs further underscore Veris’ commitment to building a future-ready workforce.
Outlook – Building Momentum into FY26
With a secured project pipeline exceeding $65 million and a healthy unsecured pipeline valued at over $190 million, Veris is well positioned for continued growth. The company’s digital-led strategy aims to scale advisory services and deepen client relationships through integrated, higher-margin offerings. Early FY26 trading shows sustained revenue growth and margin improvement, although one-off legal costs related to workplace health and safety proceedings are expected to impact cash flow in the short term.
Bottom Line?
Veris’ FY25 turnaround and digital expansion lay a solid foundation, but integration and legal challenges will test its momentum in FY26.
Questions in the middle?
- How will Veris manage the integration risks of recent acquisitions like Mesh and Parsel?
- What impact will ongoing legal costs have on near-term cash flow and profitability?
- Can Veris sustain margin expansion while scaling its digital and advisory services nationally?
