Urbanise’s FY25 Revenue Hits $13.1M as NAB Partnership Fuels Growth

A Strategic Partnership to Disrupt Strata Banking

Urbanise.com Limited (ASX – UBN) has announced a transformative partnership with National Australia Bank (NAB) that promises to modernise the strata management sector’s financial infrastructure. The collaboration centres on the development of the Data and Payments Integration Services (DPIS), a cloud-based solution integrating NAB’s banking and payment systems directly into Urbanise’s strata platform.

This integration aims to replace the industry’s entrenched legacy on-premise systems, which have dominated for over two decades, with a seamless, automated, and transparent financial workflow. Features such as automated reconciliations, levy collections, supplier payments, and real-time trust account visibility are set to redefine operational efficiency and compliance for strata managers and their clients.

Financial Strength and Growth Momentum

Urbanise’s FY2025 results underscore a company on the rise. Total revenue increased by 4.2% to $13.1 million, with Annual Recurring Revenue (ARR) growing 12.7% to the same figure. Notably, net ARR retention improved markedly to 93.5%, reflecting strong customer satisfaction and platform stickiness.

Importantly, Urbanise achieved positive operating cash flow in FY25, a significant turnaround supported by disciplined cost management and operational efficiencies. The company ended the year with a robust cash position of $15.9 million and no material debt, bolstered by NAB’s $8.8 million equity investment and $4.6 million in partnership funding for DPIS development.

Looking Ahead – Investment and Market Expansion

The year ahead is earmarked as an investment phase, with FY2026 expected to see negative operating cash flow due to the build and integration costs of the DPIS solution. However, this is a strategic deployment of capital, fully funded by upfront payments from NAB, positioning Urbanise for accelerated growth once the product launches.

Urbanise plans to leverage its existing customer base, already encompassing about one-third of Australia’s major strata managers, and NAB’s extensive business banking reach to drive adoption. The company targets disrupting the 40% of the strata market still reliant on outdated legacy software, offering a compelling value proposition of modern, cloud-based infrastructure.

Risks and Strategic Discipline

While the outlook is promising, Urbanise remains vigilant about risks including contract churn, legacy bespoke agreements, and dependencies on third-party service providers in its Facilities Management segment. The company is actively mitigating these through contract renewals, direct business growth, and operational improvements.

The Board’s capital allocation strategy remains conservative, prioritising DPIS delivery, balance sheet strength, and disciplined growth initiatives. This measured approach aims to sustain Urbanise’s momentum while managing market and execution risks.

Conclusion

Urbanise’s FY2025 marks a pivotal inflection point, with a strengthened balance sheet, improved recurring revenue quality, and a landmark banking partnership that could redefine strata management in Australia. The coming year will test the company’s ability to execute on its ambitious integration and growth plans, setting the stage for a potentially transformative chapter in its evolution.