Urbanise Narrows Losses as NAB Banking Integration Pilot Begins

Financial Turnaround with Revenue Growth and Reduced Losses

Urbanise.com Limited (ASX:UBN) delivered a solid FY2026 performance marked by a 14.3% increase in revenue to $15 million and a substantial narrowing of its net loss to $0.9 million, down from $3.6 million the prior year. The company’s EBITDA loss also improved by 61% to $1.3 million, reflecting emerging operating leverage as revenue growth accelerated and cost discipline tightened in the second half of the year.

Annual Recurring Revenue (ARR) grew modestly by 2.2% to $13.3 million, supported by the National Australia Bank (NAB) partnership, new contract wins, and customer expansions. Urbanise ended the year with a strong balance sheet, holding $11.9 million in cash and term deposits and no debt, despite planned investments in its NAB Integration Service and Owners Portal.

NAB Partnership Pilot Marks Strategic Milestone

The strategic partnership with NAB, a centerpiece of Urbanise’s growth strategy, progressed from design to development and delivery during FY2026. The company substantially completed the Urbanise NAB Integration Service, which embeds banking and payment infrastructure into its strata management platform, addressing a market where over 40% still rely on legacy systems.

In July 2026, Urbanise commenced a staged pilot rollout of the NAB Integration Service and the new Body Corporate Manager (BCM)-branded Owners Portal, featuring payments and levies capabilities such as PayID and PayTo. Contracted customers have committed to early adoption, positioning Urbanise to capture a significant share of the strata market’s $10 to $15 billion in funds under management, with potential to double current Strata ARR through enhanced platform monetisation and legacy system conversions.

This pilot program is critical, as it requires compliance with stringent banking regulations and operational standards. Urbanise plans to update the market on pilot progress and commercial outcomes as customer deployments advance.

Product Innovation with AI Assistant and Platform Enhancements

Urbanise also unveiled its first artificial intelligence initiative in April 2026, launching an embedded AI Assistant within the Strata platform. This assistant provides strata managers with natural-language access to portfolio, compliance, maintenance, and financial data, aiming to boost productivity by up to 30% in early pilot tests. The company targets a customer release shortly after year end, with a broader AI roadmap planned to automate workflows across both Strata and Facilities Management segments.

Alongside AI, the company delivered significant platform upgrades, including automated reconciliation and supplier payment workflows, enhancing operational efficiencies and customer retention potential.

Segment Performance and Market Opportunity

The Strata segment posted robust growth, with revenue rising 28.6% to $9.7 million, driven by $1.3 million in licence fees from the NAB partnership and new customer wins, including conversions from legacy providers accounting for about 17,000 lots signed during FY2026. However, net Strata ARR retention slightly declined to 96.2% due to churn among smaller APAC schemes.

Conversely, Facilities Management revenue declined 5% to $5.3 million, impacted by customer churn and the discontinuation of low-margin third-party software pass-through revenue. Despite this, Facilities Management maintained a strong ARR retention rate of 99.3%, with growth in MENA offset by reductions in APAC.

Customer Success Stories Illustrate Platform Value

Urbanise highlighted Guardian Early Learning’s adoption of Urbanise FM across 187 centres nationally, achieving 99.95% fire compliance and a 20% reduction in maintenance costs, while meeting a 15-minute response KPI. Similarly, Direct Strata Management demonstrated 20-30% organic growth and 99% client retention by leveraging Urbanise’s automation capabilities to scale efficiently without increasing administrative overhead.

Governance and Leadership Strengthening

The company bolstered its leadership team with the appointment of Darc Rasmussen as Executive Chairman and Adam Vidal as Chief Commercial Officer, enhancing executive capacity to manage product delivery and commercial execution. Urbanise is also recruiting a Chief Product Officer to support its growth trajectory.

Remuneration policies continue to align management incentives with shareholder value through a mix of fixed pay, short-term incentives linked to financial and operational KPIs, and long-term incentives via Share Appreciation Rights (SARs) tied to share price performance.

Risks and Outlook

Key risks identified include customer concentration, execution challenges of strategic initiatives such as the NAB partnership, technology and cybersecurity threats, and competitive pressures. The company maintains ISO 27001 certification and continues to invest in its information security framework.

Looking ahead, Urbanise aims to capitalise on its two-pronged growth strategy: monetising the existing customer base more deeply and converting legacy market users to its cloud platform. The staged NAB Integration Service pilot and Owners Portal rollout are pivotal catalysts, with positive operating cash flow targeted in the second half of FY2027 as development completes and recurring revenues scale.

Investors should monitor the pace of customer adoption in the NAB pilot and the commercialisation of AI capabilities, which together will determine Urbanise’s ability to translate product innovation into sustainable financial performance.