Urbanise Faces FY26 Cash Flow Dip Amid $4.6M NAB-Backed DPIS Build

Strategic Partnership with NAB

Urbanise.com Limited (ASX – UBN) has marked a pivotal moment in its evolution by securing a strategic partnership with National Australia Bank (NAB), a move designed to disrupt the entrenched strata management industry. This collaboration integrates NAB’s banking and payment infrastructure directly into Urbanise’s cloud-based strata platform, creating a seamless environment for automated reconciliations, levy collections, and real-time trust account visibility.

The partnership includes a significant $8.8 million equity investment by NAB and $4.6 million in development funding to build the Data and Payments Integration Services (DPIS) solution. This initiative aims to modernise an industry long reliant on outdated legacy systems, offering strata managers and property owners a secure, efficient, and transparent financial workflow.

FY2025 Financial Performance and Operational Progress

Urbanise reported total revenue of $13.1 million for FY2025, reflecting a 4.2% increase year-on-year, with Annual Recurring Revenue (ARR) growing 12.7% to the same figure. The company improved its net ARR retention rate to 93.5%, signaling strong customer loyalty and increased platform usage. Recurring revenue now accounts for over 90% of total revenue, underscoring the stability of Urbanise’s business model.

Importantly, Urbanise achieved positive operating cash flow in FY2025, a milestone supported by disciplined cost management and operational efficiencies. The company closed the year with a robust cash position of $15.9 million and no material debt, providing a solid foundation for upcoming investments.

Looking Ahead – DPIS Build and Market Disruption

The DPIS solution, scheduled for market release in 2026, represents a next-generation strata banking and payments platform. By embedding NAB’s banking capabilities, Urbanise aims to replace legacy on-premise systems that still dominate approximately 40% of the Australian strata market. The integration promises to deliver enhanced compliance, reporting, and operational efficiency, positioning Urbanise as the core digital infrastructure for strata management.

FY2026 is anticipated to be an investment-heavy year, with expected negative operating cash flow as development costs are incurred. However, these investments are fully funded by upfront payments from NAB, and the company targets a return to positive cash flow in FY2027 as customer adoption accelerates and recurring revenues grow.

Strategic Priorities and Market Position

Urbanise’s management and board remain focused on executing the NAB partnership, expanding market share within strata and facilities management segments, and scaling operational efficiencies. The company’s cloud-based platforms are already used across 18 countries, supporting over 600,000 strata lots and 3,400 facilities management users, with a strong presence in Australia, New Zealand, and the Middle East.

With a clear strategic roadmap and a strengthened balance sheet, Urbanise is well positioned to capitalize on structural industry disruption driven by digital transformation and evolving customer expectations.