Can hipages Sustain Growth Amid AI Disruption and Market Risks?
hipages Group Holdings Ltd has delivered a robust half-year performance, reporting 11% revenue growth and a significant jump in net profit to A$2.75 million for the period ending December 2025. The company’s strategic pricing changes and expansion in New Zealand underpin this strong momentum.
- 11% increase in revenue to A$44.9 million
- 29% growth in EBITDA to A$11.18 million with margin expansion to 25%
- Net profit surged 3,663% to A$2.75 million
- 9% growth in monthly recurring revenue and 10% rise in ARPU
- Strong cash position with A$31.1 million in cash and no debt
Strong Financial Momentum Amid Market Challenges
hipages Group Holdings Ltd (ASX: HPG), Australia and New Zealand’s leading platform connecting tradie businesses with households, has reported a compelling half-year result for the six months ended 31 December 2025. The company posted an 11% increase in revenue to A$44.9 million, driven primarily by the successful migration of tradie subscribers to new pricing plans and solid growth in its New Zealand operations.
Underlying this revenue growth is a 29% jump in EBITDA to A$11.18 million, with the EBITDA margin expanding by four percentage points to 25%. This margin improvement reflects operational leverage and disciplined cost management, as operating expenses fell to 75% of revenue. The net profit attributable to members surged dramatically to A$2.75 million, a 3,663% increase compared to the prior corresponding period.
Subscription Growth and ARPU Drive Recurring Revenue
Monthly recurring revenue (MRR) rose 9% to A$7.48 million, underpinned by a 10% increase in average revenue per user (ARPU) to A$2,497. This growth was fuelled by the full migration of Australian tradie businesses to new pricing plans and a 41% ARPU increase in New Zealand, where the Builderscrack platform transitioned to a full subscription model. While the number of tradie subscribers in Australia remained stable at just over 32,000, New Zealand saw a 17% rise to 3,082 subscribers.
hipages also rebranded its Tradiecore app to 'hipages for business' and launched 'hipages Perks', a loyalty program offering exclusive deals to tradies and households. These initiatives aim to deepen platform engagement and retention, alongside new features such as enhanced quoting, scheduling, SMS integration, and AI-powered workflows.
Robust Cash Flow and Debt-Free Balance Sheet
The Group’s cash flow performance was equally impressive, with operating cash inflows increasing 37% to A$12.88 million and free cash flow more than tripling to A$4.33 million. hipages ended the period with a strong cash and cash equivalents position of A$31.1 million and no debt, providing ample flexibility for strategic investments and growth initiatives.
Looking ahead, hipages targets full-year revenue between A$90 million and A$91 million, an EBITDA margin of 24% to 26%, and free cash flow of A$8 million to A$10 million. The company remains focused on expanding its core marketplace, enhancing job management tools with AI capabilities, and exploring new adjacent services to diversify revenue streams.
Navigating Risks in a Dynamic Environment
hipages acknowledges several risks, including marketplace dynamics, AI-driven disruption to customer acquisition channels, technology resilience, economic volatility, and regulatory compliance. The Group has outlined mitigation strategies such as ongoing investment in marketing, product innovation, cybersecurity, and regulatory monitoring. Notably, hipages is among the first cohort to launch an app in the ChatGPT App Store, signalling its commitment to integrating AI into its platform.
Despite these challenges, hipages’ half-year results demonstrate a strong foundation and strategic agility in a competitive and evolving market.
Bottom Line?
With solid growth and a clean balance sheet, hipages is well-positioned; but the evolving AI landscape and marketplace dynamics will test its next moves.
Questions in the middle?
- How quickly will tradie adoption of advanced job management features accelerate?
- What impact will AI-driven changes in customer discovery have on hipages’ acquisition costs?
- Will hipages maintain its margin expansion amid increasing competition and economic uncertainty?
