hipages Group lifted FY26 revenue 9% to $90.6 million and expanded EBITDA margin to a record 25.3%, driven by strong subscription ARPU growth and AI-powered platform enhancements. The Group also acquired a majority stake in Viz Insurance and launched a 10% on-market share buy-back.
- Revenue rises 9% to $90.6 million
- Pro-forma NPAT up 156% to $6.1 million
- EBITDA margin expands to 25.3%
- Acquires 51% stake in Viz Insurance
- Launches 10% on-market share buy-back
Strong profit surge masks tax asset boost
hipages Group Holdings Ltd (ASX:HPG) reported a striking turnaround in profitability for FY26, with statutory net profit after tax soaring to $15 million from $2.4 million a year earlier. However, this headline jump is heavily influenced by the recognition of previously unrecognised deferred tax assets, primarily related to historical tax losses and R&D credits. On a pro-forma basis, excluding this tax benefit, NPAT still rose a robust 156% to $6.1 million, underscoring genuine operational progress.
Revenue and margin gains driven by subscription growth and AI
The Group’s revenue climbed 9% to $90.6 million, underpinned by an 8% increase in annual recurring revenue to $95.6 million and a 9% lift in subscription ARPU to $2,475. hipages Australia, the core market, saw ARPU rise 8% to $2,575, while hipages New Zealand (Builderscrack) delivered a 26% ARPU jump to $1,501. EBITDA grew 17% to $22.9 million, with the margin expanding 1.7 percentage points to a record 25.3%, reflecting operating leverage and disciplined cost control.
Multi-product platform strategy advances with Viz Insurance acquisition
hipages is executing a strategic pivot from a pure marketplace to a multi-product platform. The acquisition of a 51% stake in Viz Insurance for $1.484 million in April 2026 marks a significant step into the insurance sector, offering specialist insurance products for over 85 trade occupations. This deal added approximately 4,500 serviced businesses, mostly new to hipages, expanding the Group’s total addressable market and diversifying revenue streams beyond lead generation and job management.
The Group is actively embedding AI across its product suite, enhancing customer experience and operational productivity. Notably, adoption of job management features among Australian users rose from 12% to 22% in FY26, with power users increasing 82% year-on-year, driving improved customer retention and lifetime value.
Cash flow strength fuels share buy-back and growth flexibility
Free cash flow surged 66% to $9.35 million, bolstering cash and funds on deposit to $34.2 million. This strong balance sheet enabled hipages to commence an on-market share buy-back of up to 10% of issued capital starting in May 2026, reflecting management’s confidence in the company’s intrinsic value and disciplined capital allocation. The Group retains flexibility for further organic and inorganic growth initiatives.
Leadership and governance updates
hipages confirmed no changes to its executive remuneration frameworks, which remain aligned with shareholder interests. Nicholas Gray, a Non-Independent Non-Executive Director and News Corp nominee, will resign on 31 August 2026 and be replaced by Sally Fielke, also a News Corp nominee. The independent auditor, PwC, issued an unqualified opinion on both the financial and remuneration reports.
FY27 outlook targets continued growth amid macro uncertainty
Looking ahead, hipages expects FY27 revenue growth of 9–11%, EBITDA margin expansion to 25–27%, and free cash flow of $11–13 million, assuming no material macroeconomic deterioration. The Group plans to deepen AI integration, expand value-added services, and remain open to disciplined M&A to complement its platform strategy.
Bottom Line?
hipages’ FY26 results highlight operational momentum and strategic expansion into insurance, but investors should watch how the Group sustains profit growth beyond the one-off tax asset recognition and integrates Viz Insurance.
Questions in the middle?
- How will hipages sustain NPAT growth without further tax asset boosts?
- What impact will the Viz Insurance acquisition have on long-term revenue diversification?
- Can AI-driven job management adoption continue to accelerate customer retention and ARPU?