Dubber Corporation reported a 9% revenue decline to $18.7 million for the half-year ending December 2025, alongside a 65% reduction in net loss. The company pursues growth through AI innovation and cost efficiencies while navigating ongoing legal proceedings.
- 9% revenue decline to $18.7 million
- 65% reduction in net loss to $4.24 million
- Revenue down 18% in Europe, growth in Americas and Rest of World
- Ongoing legal action over alleged fund misuse with uncertain recovery
- Targets cash flow breakeven in FY26 with new North American contract
Financial Performance Overview
Dubber Corporation Limited has released its interim financial results for the half-year ended 31 December 2025, revealing a mixed performance amid ongoing challenges. Revenue declined by 9% to $18.7 million compared to the previous corresponding period, primarily driven by an 18% drop in European revenues. Despite this, the company achieved a significant 65% reduction in its net loss, which narrowed to $4.24 million.
The revenue contraction in Europe was largely due to a major customer transitioning to an alternative provider, compounded by lower renewal rates on legacy contracts. However, the Americas segment posted an 8% revenue increase, supported by growing demand from cloud service providers and Microsoft Teams integration, while the Rest of World segment grew modestly by 7%.
Cost Management and Operational Efficiencies
Dubber’s improved financial outcome was underpinned by aggressive cost reduction measures. Salaries and related expenses fell by 21%, reflecting headcount reductions and operational streamlining. General and administrative costs also decreased by 20%, aided by lower legal expenses following the peak of investigations into alleged fund misuse. These efficiencies contributed to a gross margin improvement to 70%, up from 68% the prior year.
Other income surged due to one-off gains from exiting UK office leases, while finance costs dropped significantly as the company repaid statutory tax liabilities and reduced lease obligations. Depreciation and amortisation expenses halved, reflecting the disposal of right-of-use assets associated with office closures.
Legal Proceedings and Fund Recovery Efforts
Dubber continues to pursue legal action related to the alleged misuse of approximately $26.6 million in company funds, with proceedings ongoing against former executives and associated parties. The company has lodged claims with regulatory bodies and courts but acknowledges that recovery timing and amounts remain uncertain. Importantly, Dubber has raised capital and implemented cost controls to ensure operational continuity independent of any recovery proceeds.
Strategic Outlook and Market Position
Looking ahead, Dubber is focused on driving revenue growth through AI-powered conversation analytics and expanding its footprint in key telecommunications markets. The company recently secured a Tier 1 North American cloud service provider contract, expected to deliver approximately $4.3 million in cash proceeds over five years. This deal, alongside ongoing product development and cost optimisation, supports management’s target of achieving underlying cash flow breakeven during FY26.
Despite the revenue headwinds in Europe, Dubber’s diversified geographic presence and technology investments position it to capitalise on growing demand for unified call recording and AI analytics services globally. The company maintains a solid cash position of $7.3 million and access to a $5 million committed loan facility, underpinning its financial resilience.
Bottom Line?
Dubber’s path to profitability hinges on sustaining revenue growth amid legal uncertainties and evolving market dynamics.
Questions in the middle?
- How will the ongoing legal proceedings impact Dubber’s financial recovery and investor confidence?
- Can the company offset European revenue declines with growth in the Americas and Rest of World segments?
- Will Dubber achieve its targeted cash flow breakeven in FY26 amid continued investments in AI and product development?