Smart Parking Surges 42% in Revenue, Eyes 3,000 Sites by 2028

Record Growth and Profitability

Smart Parking Limited (ASX – SPZ) has reported a standout financial year for FY25, posting revenue of $77.2 million, a 42% increase compared to the prior corresponding period. Adjusted EBITDA climbed 47% to $20.5 million, reflecting both robust top-line growth and expanding margins. The company’s adjusted free cash flow also rose 15% to $13.3 million, underscoring strong cash generation amid ongoing expansion.

These results continue a multi-year trend of growth and margin improvement, with the share price up over 800% in five years, signaling investor confidence in Smart Parking’s strategy and execution.

Expanding International Footprint

Smart Parking’s growth is underpinned by a disciplined approach to both organic expansion and acquisitions. The February 2025 acquisition of Peak Parking marked a significant milestone, establishing a foothold in the vast US parking market. This move complements the company’s existing presence in the UK, New Zealand, Germany, Denmark, and Switzerland.

Across these markets, the company reported strong site and Parking Breach Notice (PBN) growth. For example, New Zealand saw a 47% increase in sites and a 62% jump in revenue, while Germany’s sites grew 60%, albeit with EBITDA still negative but improving. The UK remains the largest contributor with over 1,300 sites and a solid EBITDA margin near 32%.

Technology and Business Model

Smart Parking’s proprietary AI-driven SmartCloud platform processes nearly half a billion images annually, enabling efficient enforcement and compliance. The company’s capital-light model requires approximately $18,000 in capital expenditure per site, with a payback period of under a year and an incremental EBITDA margin of 55%. This scalable model supports high incremental profitability as the site base grows.

In Q1 FY26, the company reported a 69% revenue increase and 56% EBITDA growth, with continued site expansion and PBN issuance across all markets. The US integration is progressing well, with new sites live and accretive to earnings.

Looking Ahead

Smart Parking has reaffirmed its long-term target of managing 3,000 ANPR sites globally by December 2028. The company plans to continue leveraging its technology, disciplined M&A strategy, and strong balance sheet to drive growth across existing and new territories. Regulatory changes, particularly in Denmark, remain a watchpoint but the company is adapting its technology to maximize returns.

Overall, Smart Parking’s FY25 results and early FY26 momentum position it well in the growing smart parking and mobility technology sector, with a clear pathway to scale and profitability.