Hubify Limited posted an 89% jump in FY26 EBITDA to $0.66 million despite a 5% revenue dip, driven by a strategic shift to higher-margin managed technology and advisory services and a robust cash position of $3.79 million.
- EBITDA rises 89% to $0.66 million
- Total revenue declines 5% to $16.88 million
- Recurring revenue grows to 90% of total
- Operating cash flow surges to $1.41 million
- $250,000 placement funds AI-focused HubLab investment
Profitability Boost Amid Strategic Revenue Realignment
Hubify Limited (ASX:HFY) delivered a marked improvement in profitability for the year ended 30 June 2026, with EBITDA soaring 89% to $664,000 despite a 5% decline in total revenue to $16.88 million. This earnings growth came as the company strategically exited lower-margin, non-core customer accounts to sharpen its focus on higher-value Managed Technology and Advisory recurring revenue streams.
The deliberate pruning of legacy contracts trimmed revenue but improved earnings quality, lifting gross margin to 33% from 16% the previous year. Recurring revenue now accounts for 90% of total revenue, up from 87%, underscoring Hubify's shift towards more stable, predictable income. The company’s statutory loss after tax narrowed to $449,000 from $814,000 in FY25, reflecting both operational improvements and reduced non-cash amortisation charges.
Robust Cash Flow and Debt-Free Balance Sheet
Hubify’s cash position strengthened significantly, ending FY26 with $3.79 million in cash and cash equivalents, up 86% from the prior year. Net cash generated from operating activities jumped to $1.41 million, a 315% increase on FY25. The company remains debt-free, with no contingent liabilities related to past acquisitions, providing a solid financial foundation for growth initiatives.
This improved liquidity supports management’s confidence in executing both organic and acquisitive growth strategies, as the company looks to capitalise on its scalable business model and operational leverage.
Managed Technology and Advisory: Engines of Growth
Hubify’s Managed Technology and Advisory division generated $11.6 million in revenue from 116 clients, with 91% recurring revenue and a 24% gross margin. The business is pivoting from traditional task-based managed services, which have been commoditised by cloud, automation, and AI, towards advisory, security, and AI enablement services priced on outcomes rather than effort.
This advisory-led model fosters deeper client engagement, longer contract durations, and higher margins. Hubify’s CEO Victor Tsaccounis emphasised the shift from reactive service delivery to proactive agenda-setting, which enhances both client outcomes and company profitability.
Partnerships and AI Investment Drive Future Potential
In February 2026, Hubify raised $250,000 via a placement at 4.2 cents per share, investing the proceeds into HubLab Pty Ltd, an Australian AI-focused technology company. This aligns with Hubify’s AI-first growth strategy, aimed at bridging the gap between AI innovation and practical adoption in Australian enterprises.
The company also maintains a co-branded partnership with Optus, enabling joint go-to-market activities and access to AI-native platforms. This partnership underpins a growing pipeline of enterprise prospects, positioning Hubify to capitalise on the expanding AI and managed services market.
Governance and Leadership Stability
Hubify’s leadership team remains stable, with Victor Tsaccounis continuing as CEO and Deepak Nand appointed CFO and Company Secretary in December 2025. The board, chaired by Anthony Ghattas, highlights a focus on cost optimisation, scalable internal systems, and disciplined capital management to support sustainable growth.
Performance rights granted to executives expired unexercised in FY26, reflecting the company’s recalibrated incentive structures aligned with its strategic refocus.
Bottom Line?
Hubify’s FY26 results reflect a successful strategic pivot to higher-margin advisory and managed technology services, supported by strong cash flow and a debt-free balance sheet. The company’s AI investments and Optus partnership could be key catalysts to watch as it seeks to convert its growing sales pipeline into sustained earnings growth.
Questions in the middle?
- How will Hubify’s shift to advisory services impact long-term revenue growth amid evolving technology trends?
- What role will the HubLab investment and AI initiatives play in expanding Hubify’s market share?
- Can Hubify sustain its cost optimisation momentum while scaling organically and through acquisitions?