Smart Parking Hits $77.2M Revenue with 1,799 Sites and Peak Parking Buy
Smart Parking Limited reports a record FY25 with revenues up 42% to $77.2 million, driven by organic growth and strategic acquisitions including Peak Parking in the US. The company targets 3,000 managed sites by 2028, leveraging proprietary AI technology across multiple international markets.
- FY25 revenue rises 42% to $77.2 million
- Adjusted EBITDA grows 47% to $20.5 million
- Acquisition of US-based Peak Parking expands footprint
- Global ANPR sites reach 1,799 with 31% CAGR over 7 years
- Q1 FY26 shows continued strong growth with revenue up 69%
Strong Financial Performance and Market Expansion
Smart Parking Limited (ASX, SPZ) has delivered a standout FY25 performance, reporting a 42% increase in revenue to $77.2 million and a 47% rise in adjusted EBITDA to $20.5 million. This growth reflects the company’s successful execution of a multi-year strategy focused on expanding its footprint in large addressable markets and leveraging its proprietary AI-driven parking management technology.
The company now operates 1,799 ANPR (Automatic Number Plate Recognition) sites globally, achieving a compound annual growth rate of 31% over the past seven years. This expansion is underpinned by a capital-light business model with high incremental margins, enabling Smart Parking to scale efficiently while maintaining profitability.
Strategic Acquisitions and Geographic Diversification
A key highlight of FY25 was the acquisition of Peak Parking, a Texas-based operator, marking Smart Parking’s significant entry into the US market; the largest parking operations market worldwide. This acquisition complements the company’s organic growth in established territories such as the UK, New Zealand, Germany, Denmark, and Switzerland.
Smart Parking’s disciplined approach to mergers and acquisitions focuses on strategic fit, technology integration, and earnings accretion. The company continues to evaluate new market opportunities across Scandinavia, mainland Europe, and the USA, targeting regions with favorable regulatory environments to maximize the impact of its SmartCloud AI technology.
Technology and Compliance as Competitive Advantages
At the core of Smart Parking’s success is its proprietary SmartCloud AI engine, which processed over 490 million images in FY25, enabling precise detection and management of parking breaches. The company issued over 1 million Parking Breach Notices (PBNs) during the year, generating strong recurring revenue streams.
Smart Parking’s technology not only enhances operational efficiency but also ensures compliance with diverse regulatory frameworks across its markets. This compliance expertise, combined with a diversified customer base spanning retail, hospitality, healthcare, and transportation sectors, positions the company well for sustainable long-term growth.
Positive Outlook and Growth Targets
Early indications from Q1 FY26 are encouraging, with revenue up 69% and adjusted EBITDA rising 56% compared to the prior corresponding period. The company is targeting 500 to 700 new site installations in FY27 and has reaffirmed its long-term goal of managing 3,000 ANPR sites by December 2028.
Smart Parking’s management emphasizes a balanced growth strategy combining organic expansion, disciplined acquisitions, and continuous innovation in AI technology. With a strong balance sheet and a growing international presence, the company is well positioned to capitalize on the expanding global parking management market.
Bottom Line?
Smart Parking’s robust growth and strategic US entry set the stage for a transformative phase in global parking management.
Questions in the middle?
- How will regulatory changes in key markets like Denmark affect future PBN issuance and revenue?
- What is the pipeline and timeline for further acquisitions in the US and Europe?
- How will Smart Parking sustain margin expansion amid rapid site growth and geographic diversification?
