Freelancer Posts Record $2.2m Profit and Secures $475m NASA Contract

Profitability Breakthrough and Strategic Contract Wins

Freelancer Limited (ASX:FLN) has turned a corner in FY25, posting a record net profit after tax of $2.2 million, up from a loss of $0.8 million the previous year. Operating profit more than doubled to $2.0 million, marking a clear validation of the company’s disciplined strategy over the past two years. This financial turnaround was powered by growth across its core divisions, including the Freelancer marketplace, Escrow.com payments, and Loadshift freight platform.

A standout highlight was Freelancer’s joint award of NASA’s 10-year, US$475 million NOIS3 innovation contract. This places Freelancer at the forefront of global crowdsourced innovation, delivering projects ranging from genome editor delivery research for the NIH to lunar south pole navigation concepts and the Artemis II zero-gravity indicator design. The company has since expanded this innovation program to include the United Nations, launching a challenge focused on underwater explosive ordnance clearance, and plans a corporate program rollout in early FY26.

Marketplace Growth Fueled by AI and Product Innovation

The Freelancer marketplace onboarded 7.32 million new users in FY25, with total jobs posted rising 4% to 25.3 million. Importantly, average project size jumped 19.4% to US$413, reflecting a shift towards higher-value and more complex work. AI-related jobs now represent around 5% of total marketplace volume, validating Freelancer’s conviction that AI enhances rather than replaces human talent.

Strategic product launches supported this momentum, including client-initiated audio and video calling, an AI-automated project review process that boosted key financial conversion metrics by approximately 10%, and the launch of Prototyper, a collaborative AI-powered whiteboard enabling clients and freelancers to prototype interactive concepts without coding. These innovations are designed to deepen marketplace engagement and improve client outcomes.

The company’s Enterprise division expanded its footprint with a new Bengaluru office and Concierge services for premium customers, underpinning a strong pipeline of high-profile contracts and enterprise AI services. This aligns with Freelancer’s broader ambition to become the global hub for AI agent development and large-scale freelancer deployments.

Escrow.com and Loadshift Deliver Record Results

Escrow.com posted all-time record revenue of $12.3 million in FY25, up 18.8%, marking its fifth consecutive year of profitability. Despite a slight dip in gross payment volume to $760.4 million, mainly due to the lapping of a large IPv4 transaction in 2024, the division is positioned for strong growth in 2026. A formalized e-commerce partnership and expansion into new verticals such as B2B electronics, luxury goods, and automotive markets are expected to drive merchant adoption and transaction volumes.

Loadshift, Australia’s largest heavy haulage freight marketplace, achieved maiden full-year profitability with revenue up 12.4% and gross marketplace value increasing 7.7%. Consecutive record quarterly revenues in 3Q25 and 4Q25 underscore operational strength. Platform enhancements such as in-app calling and real-time GPS tracking development have improved marketplace efficiency and customer experience, supporting Loadshift’s growing enterprise base.

Financial Discipline and Strong Balance Sheet

The group delivered total revenue of $55.3 million, a 4.1% increase on FY24, with gross profit rising 8.5% to $45.3 million and gross margin expanding to 85.2%. Operating cash flow surged 33% to $7.7 million, while the company ended the year with $22.9 million in cash and no external debt. The acquisition of additional shares in Loadshift increased ownership to 73.4%, reflecting strategic consolidation.

Management plans to maintain disciplined cost control and capital allocation, targeting consistent monthly operating profits of at least $500,000. Payroll expenses rose modestly due to headcount growth and increased marketing investment, particularly in search engine marketing, which has returned to record levels after rectifying a prior technical issue.

Risks and Outlook for FY26

Freelancer acknowledges a range of risks including regulatory changes, cybersecurity threats, foreign exchange volatility, and the evolving impact of AI on marketplace dynamics. The company is actively managing these through compliance programs, technology investments, and diversification strategies.

Looking ahead, Freelancer intends to accelerate AI-driven innovation, expand financial service offerings, and enhance marketplace engagement. The company is also focused on broadening payment methods and scaling enterprise and government partnerships globally. Its strategic investments in AI and platform capabilities position Freelancer to capitalize on structural tailwinds in the gig economy and digital payments.

This latest annual report builds on previous strong results, including the record half-year profit and AI-driven growth reported earlier in the year, underscoring Freelancer’s trajectory as a global leader in online marketplaces and payments technology. Freelancer Limited Posts Record Profit Amid AI-Driven Growth and Platform Expansion provides a detailed view of this momentum.