Wrkr Ltd Boosts Revenue 43% but Losses Surge 75% in H1 FY2026
Wrkr Ltd reports a 43% revenue increase to nearly $7 million in H1 FY2026 but also a 75% rise in net loss, while completing a $15 million capital raise and acquiring payroll compliance firm PaidRight.
- Revenue up 43% to $6.99 million for half-year
- Net loss widens 75% to $2.67 million
- Completed $15 million share placement in August 2025
- Acquired PaidRight Holdings in February 2026
- Directors affirm going concern status despite losses
Revenue Growth Amid Rising Losses
Wrkr Ltd (ASX: WRK), an Australian regulatory technology company specialising in workforce compliance solutions, has released its half-year financial results for the period ending 31 December 2025. The company reported a 43% increase in revenue to $6.99 million, driven by growth across its core products Wrkr Pay, Wrkr Platform, and Wrkr Ready. However, this revenue growth was accompanied by a significant widening of its net loss after tax, which increased by 75.3% to $2.67 million compared to the prior corresponding period.
Operational Performance and Financial Position
Wrkr’s EBITDA loss also deepened to $1.24 million from $408,000 a year earlier, reflecting increased operating expenses including business acquisition costs, employee benefits, and marketing. Despite the losses, the company’s balance sheet remains robust with cash and cash equivalents rising to $16.18 million, bolstered by a $15 million institutional placement completed in August 2025 at $0.09 per share. Net tangible assets per share improved to 0.75 cents from 0.26 cents, signalling strengthened equity backing.
Strategic Acquisition and Growth Initiatives
In a notable strategic move, Wrkr completed the acquisition of PaidRight Holdings Pty Ltd in early February 2026, issuing over 90 million shares valued at approximately $13.6 million. PaidRight is a payroll compliance platform provider serving Australian enterprises, complementing Wrkr’s existing compliance ecosystem. The acquisition aims to expand Wrkr’s market footprint and enhance its service offerings in payroll compliance.
Business Model and Market Position
Wrkr operates cloud-based platforms that digitise compliance processes for employers, facilitating real-time data and payment flows between regulated authorities such as the Australian Taxation Office and participants including payroll providers, accountants, and superannuation funds. Its patented payment processing technology in the US underpins its competitive edge. The company is also preparing to onboard additional super funds and adapt to evolving regulatory requirements like Payday Super compliance.
Outlook and Governance
The board remains confident in Wrkr’s ability to continue as a going concern, citing strong cash reserves, ongoing contracts with major clients including MUFG Retirement Solutions and AustralianSuper, and planned investments in growth opportunities. No dividends were declared, consistent with the company’s focus on reinvestment and expansion. The company also granted 38 million performance rights to staff, tied to ambitious user growth and financial milestones through 2028, aligning employee incentives with long-term value creation.
Bottom Line?
Wrkr’s revenue momentum and strategic acquisition set the stage for growth, but investors will watch closely as losses deepen and integration unfolds.
Questions in the middle?
- How will the PaidRight acquisition impact Wrkr’s financials and market share in FY2027?
- Can Wrkr achieve the user growth and EBITDA targets tied to its new performance rights?
- What cost management strategies will Wrkr deploy to narrow its widening losses?
