How Urbanise and NAB Are Revolutionising Strata Banking in 2026

Strategic Partnership Breaks New Ground

Urbanise.com Limited (ASX, UBN) has taken a significant leap forward in the strata management sector by securing a strategic partnership with National Australia Bank (NAB). This collaboration aims to embed NAB’s banking and payment infrastructure directly into Urbanise’s cloud-based strata platform, a move poised to disrupt an industry long dominated by outdated legacy systems.

The partnership, formalised in May 2025, includes NAB acquiring a 15% equity stake in Urbanise and committing $4.6 million in development funding for the Data and Payments Integration Services (DPIS) solution. This integrated platform will automate levy collections, supplier payments, and bank reconciliations, offering real-time trust account visibility and enhanced compliance for strata managers.

Financial Performance Signals Momentum

Urbanise’s FY2025 results underscore the company’s operational progress. Total revenue reached $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 loyalty and increased platform usage.

The company also achieved positive operating cash flow in FY25, a milestone after previous cash constraints. Urbanise ended the year with a robust cash position of $15.9 million and no material debt, setting a solid foundation for the forthcoming investment phase.

Investment Phase and Market Opportunity

FY2026 is earmarked as an investment year, with Urbanise expecting negative operating cash flow due to the DPIS development and integration costs. However, these expenditures are fully funded by upfront payments from NAB, mitigating financial risk. The company anticipates returning to positive cash flow in FY27 as the integrated solution gains market traction.

The scale of the opportunity is substantial. Approximately $10-15 billion in strata funds flow through the Australian banking sector annually, with over $20 billion in levy and supplier payments. Urbanise’s integration with NAB aims to capture a significant share of this market by offering a modern, efficient alternative to legacy on-premise systems still used by 40% of strata managers.

Q1 FY2026 Shows Early Signs of Growth

Early results for FY2026 are encouraging. The first quarter saw revenue rise 12% year-on-year to $3.7 million, driven by growth in both strata and facilities management segments. While operating cash flow was negative at just over $3.1 million, this included $1.6 million in DPIS-related costs, with the company expecting this run rate to moderate as the year progresses.

Urbanise’s strong cash balance of $12.8 million and absence of debt provide ample runway to complete the DPIS build and execute its growth strategy.

Looking Ahead, Execution and Expansion

Urbanise’s immediate focus is on delivering the DPIS solution on time and to specification, with a market launch planned for 2026. The company plans to leverage its existing customer base, which includes about one-third of Australia’s major strata managers, to accelerate adoption.

Beyond the core strata market, Urbanise aims to expand its footprint in facilities management and international markets, including New Zealand and the Middle East. Operational improvements and automation will be key to scaling efficiently and maintaining healthy margins as the business grows.

With a strengthened balance sheet, a validated cloud platform, and a transformative banking partnership, Urbanise is well positioned to lead the digital transformation of strata management in Australia and beyond.