Veris Limited reported a 9% increase in revenue for the half-year ended December 2025, yet profits declined amid operational challenges and a key acquisition. The company’s expansion into urban planning signals a strategic shift.
- Revenue increased 9% to $50.8 million
- EBIT fell 13%, profit after tax down 24%
- Acquisition of Mesh Livable Urban Communities Pty Ltd
- Declared fully franked dividend of 0.2 cents per share
- Net tangible asset backing per share slightly decreased
Revenue Growth Amid Profit Pressure
Veris Limited, a leading digital spatial data advisory firm listed on the ASX, has reported a 9% rise in revenue to $50.8 million for the half-year ended 31 December 2025, compared to the same period last year. Despite this top-line growth, the company’s earnings before interest and tax (EBIT) declined by 13%, and net profit after tax fell by 24%, highlighting ongoing operational pressures.
Strategic Acquisition Expands Capabilities
During the period, Veris completed the acquisition of Mesh Livable Urban Communities Pty Ltd, a Melbourne-based consultancy specialising in urban planning, design, and landscape architecture. This move broadens Veris’s service offering beyond its core digital and spatial data services, positioning the company to better serve infrastructure and property sectors with integrated planning solutions.
Dividend and Shareholder Returns
The company declared a fully franked dividend of 0.2 cents per share, maintaining a shareholder-friendly approach despite the profit decline. The dividend reinvestment plan was applied, allowing shareholders to reinvest dividends at a slight discount. However, net tangible asset backing per share decreased marginally from 4.74 cents to 4.34 cents, reflecting the financial impact of the acquisition and operational results.
Balancing Growth and Profitability
Veris’s results underscore a common challenge for companies expanding through acquisitions: balancing growth ambitions with short-term profitability. While revenue growth is encouraging, the decline in EBIT and net profit suggests integration costs or margin pressures. The company’s diversified footprint across Australia and its end-to-end digital data services remain strengths, but investors will be watching closely for signs of margin recovery and synergy realisation from the Mesh acquisition.
Looking Ahead
With the acquisition completed late in the period, Veris has yet to provide detailed guidance on how Mesh will contribute to future earnings. The company’s ability to leverage this expanded expertise in urban planning could unlock new market opportunities, particularly in infrastructure and government projects. However, the near-term financials highlight the need for careful management of integration and cost control.
Bottom Line?
Veris’s growth story is unfolding, but profit pressures and integration risks will test investor patience in the months ahead.
Questions in the middle?
- What are the main drivers behind the decline in EBIT and net profit despite revenue growth?
- How will the Mesh acquisition integrate with Veris’s existing operations and contribute to future earnings?
- What is the company’s outlook on margin improvement and cost management post-acquisition?