How Did Dicker Data Achieve a 12.5% Revenue Boost in FY2025?
Dicker Data Limited has reported a robust 12.5% increase in revenue for the year ended December 2025, alongside an 8.8% rise in net profit after tax, driven by strong growth in software and hardware sales.
- Revenue climbs 12.5% to $2.57 billion
- Net profit after tax rises 8.8% to $85.6 million
- Gross sales up 15%, led by software and hardware segments
- Recurring software revenue grows 22.4%, reflecting market shift
- Operating expenses increase 8.4%, mainly due to higher employee costs
Strong Revenue and Profit Growth
Dicker Data Limited has delivered a solid financial performance for the 2025 fiscal year, with statutory revenue increasing by 12.5% to $2.57 billion. This growth was underpinned by a 15% rise in gross sales, which reached $3.87 billion, reflecting the company’s expanding footprint in IT hardware, software, and cloud services across Australia and New Zealand.
The company’s net profit after tax rose by 8.8% to $85.6 million, demonstrating effective cost management despite rising operating expenses. Earnings per share increased to 47.4 cents, up nearly 9% from the prior year, signalling enhanced shareholder value.
Software and Recurring Revenue Drive Growth
A standout contributor to the growth was the software segment, which surged 21% to $1.17 billion and now accounts for over 30% of gross sales. Recurring and subscription-based software revenues grew by 22.4%, reaching $1.09 billion, highlighting Dicker Data’s successful pivot towards recurring revenue models favored by vendors and customers alike.
Hardware and virtual services also posted a healthy 12.6% increase, supported by strong demand for endpoint and advanced technology solutions. This balanced growth across product lines underscores the company’s diversified portfolio and ability to capture evolving market trends.
Operational Efficiency Amid Rising Costs
Operating expenses rose 8.4% to $197.7 million, primarily driven by a 4.7% increase in headcount to 942 employees and higher salary-related costs, including commissions linked to strong sales performance. Despite this, expenses as a proportion of revenue declined slightly, reflecting operational efficiencies.
Gross profit margins narrowed modestly to 13.5%, influenced by a shift in customer mix towards enterprise clients, but remained within management’s expectations. The company also benefited from lower finance costs due to reduced interest rates, helping to support net profit growth.
Balance Sheet and Dividend Highlights
Dicker Data maintained disciplined working capital management, with net working capital investment decreasing by $12.2 million despite top-line growth. Cash reserves improved to $66.4 million, and net debt reduced slightly to $293 million, keeping the debt-to-equity ratio stable at 1.40.
The company declared total dividends of 44 cents per share for the year, slightly down from 48 cents in 2024, with a dividend reinvestment plan continuing to offer shareholders flexibility. Equity increased to $257 million, reflecting retained earnings and share issues under the DRP.
Looking Ahead
With a strong foundation in place and continued momentum in software and recurring revenue streams, Dicker Data appears well-positioned to navigate the evolving IT distribution landscape. However, investors will be watching closely for how the company manages margin pressures and rising employee costs in the year ahead.
Bottom Line?
Dicker Data’s FY2025 results confirm its growth trajectory, but sustaining margins amid rising costs will be key to future gains.
Questions in the middle?
- How will Dicker Data sustain margin levels amid changing customer mix and cost pressures?
- What strategies will the company deploy to further accelerate recurring software revenue?
- How might macroeconomic factors like interest rates and supply chain dynamics impact 2026 performance?
