How Tinybeans’ Qeepsake Acquisition Sparked a 32% Revenue Jump
Tinybeans Group’s acquisition of US-based Qeepsake fuels a sharp revenue jump and improved profitability in Q2 FY26, signalling early success in its growth strategy.
- 32% year-on-year revenue growth to US$1.71 million
- Premium subscription ARR rises 43%, reaching US$1.15 million
- Photo Store revenue surges over 500% to US$336,000
- Operating expenses cut by 18%, driving 73% EBITDA improvement
- Paid subscribers nearly double to 96,000 post-acquisition
Strategic Acquisition Drives Growth
Tinybeans Group Limited (ASX, TNY) has delivered a standout performance in the second quarter of fiscal 2026, propelled by its strategic acquisition of Qeepsake, a US-based family journaling platform. The deal, completed during the quarter, has already begun to reshape Tinybeans’ revenue profile, with total revenue climbing 32% year-on-year to US$1.71 million.
This acquisition aligns with Tinybeans’ vision to build a privacy-first, scalable family memory ecosystem that leverages multiple monetisation streams. Early results suggest the combined platform is resonating well with users, particularly in premium subscriptions and physical product sales.
Subscription and Physical Product Momentum
Premium Annual Recurring Revenue (ARR) grew 43% to US$1.15 million, supported by a surge in paid subscribers to 96,000; a 90% increase from the previous quarter. This growth reflects strong engagement and retention, with over 88% of annual subscribers and 97% of monthly subscribers renewing their plans.
Physical product revenue, driven largely by Qeepsake’s journaling-to-book offerings, skyrocketed by more than 500% to US$336,000. This dramatic increase validates Tinybeans’ strategy to expand beyond digital subscriptions into e-commerce, enhancing monetisation opportunities and diversifying revenue streams.
Operational Efficiency and Financial Discipline
Despite the costs associated with the acquisition and capital raising, Tinybeans managed to reduce operating expenses by 18% year-on-year to US$1.57 million. This disciplined cost management contributed to a 73% improvement in EBITDA, narrowing losses to US$110,000 from US$420,000 in the prior comparable period.
Moreover, the company reported positive operating cash flow of US$38,000 for the quarter and strengthened its cash position to US$1.86 million following a December rights issue, providing a solid financial foundation for ongoing growth initiatives.
Leadership Bolsters US Expansion
To support integration and growth in the US market, Tinybeans appointed Cliff Sirlin, an experienced figure in US consumer technology and subscription businesses, to its Board as a Non-Executive Director. Additionally, Tracy Cho, former CEO of Qeepsake, joined as General Manager for the acquired business, ensuring operational continuity and leadership in sales and marketing.
Looking Ahead
With early momentum from the combined Tinybeans-Qeepsake platform, the company is focused on leveraging its expanded user base to scale revenue further while maintaining cost discipline. The emphasis remains on building a larger, more engaged subscriber base and advancing towards sustainable profitability.
Bottom Line?
Tinybeans’ Qeepsake acquisition is proving its worth early, but sustaining growth and integration success will be key in coming quarters.
Questions in the middle?
- Can Tinybeans maintain its subscriber growth momentum post-acquisition?
- How will the integration of Qeepsake’s platform evolve operationally and culturally?
- What strategies will Tinybeans deploy to further monetise its expanded user base?
