Enero’s EBITDA Climbs 15% as Revenue Falls 6.3% in H1 2026

Revenue and Profit Dynamics

Enero Group Limited reported a mixed half-year performance for the period ending 31 December 2025. Gross revenues from continuing operations fell by 6.3% to AUD 92.2 million, reflecting ongoing challenges in the technology sector, particularly impacting Hotwire Global. However, the company’s adjusted profit after tax before significant items more than doubled to AUD 2.3 million, a 118.8% increase compared to the prior corresponding period. This profit surge was driven by improved operational efficiencies and cost optimisation measures.

EBITDA before significant items rose 15% to AUD 7.4 million, with the EBITDA margin expanding from 9.3% to 10.8%. This margin improvement underscores the Group’s successful efforts to streamline costs and enhance profitability despite top-line pressures.

Segment and Geographic Performance

The Technology, Healthcare and Consumer (THC) Practice segment, which includes Hotwire, BMF, Orchard, ROI DNA, and GetIT, saw a slight revenue decline of 1%. Australian agencies BMF and Orchard delivered strong growth, offsetting declines in Hotwire Global. The Group’s geographic revenue mix remained diversified, with approximately 48% of net revenue generated internationally, down from 66% previously, reflecting a strategic focus on domestic markets.

Leadership and Strategic Moves

Midway through the reporting period, Enero appointed Ian Ball as Chief Executive Officer, effective 2 July 2025, following his earlier role as Chief Operating Officer. This leadership change signals a strategic renewal aimed at navigating the evolving market landscape. Additionally, the Group incurred $1.0 million in restructuring costs related to ROI DNA’s global rebranding and Hotwire Europe’s centralisation, reflecting ongoing efforts to align operations and reduce overheads.

Balance Sheet and Dividends

Financially, Enero maintains a robust net cash position of AUD 23.6 million as at 31 December 2025, down slightly from AUD 27.5 million mid-year, with contingent consideration liabilities fully settled. The Group declared a fully franked interim dividend of 1.0 cent per share, payable on 10 April 2026, continuing its commitment to shareholder returns despite the revenue headwinds.

Outlook Considerations

No goodwill impairment was recognised despite macroeconomic uncertainties and cost-of-living pressures affecting client spending. Management’s sensitivity analysis highlights potential risks if revenue growth or EBITDA margins decline further or discount rates rise. The Group’s focus on cost control, client diversification, and strategic leadership will be critical in sustaining momentum through the remainder of the financial year.