Urbanise’s Heavy Investment in Payments Integration Keeps Cash Flow Negative

Strong Revenue Growth Amid Strategic Investments

Urbanise.com Limited (ASX: UBN) has delivered a solid performance in the first half of fiscal 2026, reporting a 15% increase in total revenue to $7.3 million. This growth was primarily driven by a 10% rise in licence revenue and a near doubling of professional fees, largely attributed to its ongoing partnership with National Australia Bank (NAB). The company’s Annualised Recurring Revenue (ARR) climbed 17% to $13.2 million, reflecting both new customer wins and organic expansion despite some customer attrition.

While Urbanise remains in an EBITDA loss position of $0.7 million, this marks a 21% improvement compared to the previous corresponding period, underscoring effective cost management alongside revenue growth. The company’s cash position remains healthy with $12.5 million on hand and no material debt, although operating cash flow was negative due to upfront investments in its strategic NAB partnership.

Progress on NAB Partnership and Payments Integration

A key highlight of the period was the advancement of Urbanise’s Data and Payments Integration Services (DPIS) platform, developed in collaboration with NAB. This initiative aims to integrate Urbanise’s cloud-based SaaS platforms with NAB’s banking systems, enhancing trust accounting, payments, and compliance workflows for thousands of properties. The company expects to complete DPIS delivery within 2026, which is anticipated to be a significant growth driver and a differentiator in the competitive strata and facilities management markets.

CEO Simon Lee emphasised the strategic importance of this partnership, noting that while DPIS remains the primary focus, Urbanise is also accelerating product development, particularly embedding artificial intelligence capabilities across its platforms. This AI integration is designed to optimise workflows, automate processes, and deepen customer engagement by leveraging proprietary financial and operational data.

Market Opportunities and Future Outlook

Urbanise’s two core segments; Strata Management and Facilities Management; both showed growth, with Strata revenue up 22% and Facilities Management revenue increasing by 5%. The company is targeting higher ARR contract values and expanding into new industry verticals, including retirement villages and property management sectors, supported by a growing sales pipeline.

Looking ahead to the second half of FY2026, Urbanise plans to maintain disciplined cost and cash management while focusing on converting its sales pipeline into contracted recurring revenue. The company also aims to complete the DPIS platform rollout and continue embedding AI functionalities, positioning itself for a return to positive operating cash flow in FY2027.