Freelancer Limited has reported a landmark FY25 with record net profit and revenue growth, powered by strong AI integration and strategic expansion across its core marketplaces.
- Group revenue up 4.1% to $55.3 million despite 7.1% GMV decline
- Escrow.com achieves all-time record revenue and fifth consecutive profitable year
- Loadshift turns maiden profit with record operational performance
- AI adoption drives higher average project size and marketplace efficiency
- New Bengaluru office supports enterprise growth and regional expansion
Financial Turnaround and Growth
Freelancer Limited (ASX: FLN) has delivered a standout FY25 performance, posting an all-time record net profit after tax of $2.2 million, reversing a prior year loss of $0.8 million. This profitability milestone was underpinned by a 4.1% increase in group revenue to $55.3 million, despite a 7.1% decline in Gross Marketplace Value (GMV) to $881.5 million. The company’s operating profit more than doubled, reaching $2.0 million, while operating cash flow surged 32% to $7.7 million, reflecting improved operational efficiency and cash generation.
Escrow.com, the group’s secure online payments platform, was a key driver of revenue growth, achieving an all-time record $12.3 million in revenue and completing its fifth consecutive year of profitability. Meanwhile, Loadshift, Australia’s largest heavy haulage freight marketplace, recorded its maiden full-year profit, supported by a 12.4% revenue increase and 7.7% GMV growth, marking its strongest operational results to date.
AI Integration and Marketplace Innovation
Freelancer’s core marketplace continues to evolve with AI playing an increasingly pivotal role. The average project size rose 19.4% to US$413, reflecting a shift towards higher-value, complex projects. AI-related jobs now represent approximately 5% of total marketplace volume, enhancing productivity and quality on both sides of the platform. The launch of AI-powered tools such as Freelancer Prototyper, a collaborative whiteboard transforming wireframes into interactive prototypes, exemplifies the company’s commitment to innovation.
Additional AI-driven improvements include automation of project reviews, which boosted award and milestone rates by around 10%, and ongoing enhancements to matching algorithms to counter AI-generated bid spam. These technological advances are expected to deepen user engagement and improve conversion rates moving forward.
Geographic and Enterprise Expansion
Freelancer expanded its global footprint with the opening of a new office in Bengaluru, India, to support growing enterprise demand and operational delivery. Led by Gerard Christopher, the office has already secured multiple Indian enterprise clients and is focused on scaling field services and AI-related programs. The enterprise division also launched premium Concierge services and broadened its reach across multiple verticals including technology, financial services, and education.
On the payments front, Escrow.com is targeting new verticals such as luxury goods and B2B electronics marketplaces, with partnerships including WatchFacts and BrokerBin enhancing its market presence. The platform is also migrating its front-end to Freelancer’s technology stack to accelerate feature development and operational synergies.
Strengthened Leadership and Forward Outlook
Freelancer bolstered its management team with key appointments across product, legal, communications, and innovation functions, positioning the group for sustained growth. The company remains debt-free with $22.9 million in cash and equivalents, having increased its stake in Loadshift to 73.4% through share buybacks, signalling confidence in the freight marketplace’s long-term potential.
Looking ahead to FY26, Freelancer plans to enhance marketplace engagement, accelerate AI-driven innovation, expand financial services, and drive operational excellence with a target of consistent $500k monthly operating profit. With a strong balance sheet and diversified portfolio, the group is well placed to capitalise on emerging opportunities in the evolving digital labour, payments, and freight ecosystems.
Bottom Line?
Freelancer’s FY25 results mark a turning point, but the real test will be sustaining AI-driven growth amid intensifying competition and evolving market dynamics.
Questions in the middle?
- How will Freelancer maintain GMV growth while continuing to expand revenue and profitability?
- What impact will AI-driven automation have on freelancer engagement and marketplace dynamics long term?
- Can Escrow.com’s new vertical expansions and technology migration accelerate its market leadership?