Dubber reported $1.3 million of positive operating cash flow in Q1 FY27, alongside $7.7 million in revenue and $16.2 million of total liquidity. The company is now shifting from cost reduction towards growth, with new AI products and the proposed Daisee acquisition next in line.
- $1.3 million positive operating cash flow
- $7.7 million quarterly revenue and $7.3 million recurring revenue
- Normalised EBITDA reaches $0.5 million for a third consecutive quarter
- $16.2 million in cash and undrawn funding
- Daisee acquisition remains subject to completion conditions
Positive Cash Flow Gives Dubber Room to Invest
Dubber Corporation Limited (ASX:DUB) has reached a more consequential point in its turnaround: the communications software company generated $1.3 million of positive operating cash flow in Q1 FY27, while keeping its cash balance free of drawn debt.
Revenue rose marginally to $7.7 million from $7.6 million in Q4 FY26, while recurring revenue increased 3% quarter-on-quarter to $7.3 million. September exit annualised recurring revenue remained steady at $29 million. The figures for FY27 are unaudited.
Cost Discipline Lifts EBITDA and Liquidity
Dubber said quarterly cash-based costs fell 6% to $7.2 million, helped by organisational restructuring, renegotiated software contracts and automation. Operating cash-based costs dropped 10% from $5.2 million to $4.7 million, with further savings identified for Q2.
That cost work translated into normalised EBITDA of $0.5 million, up from $0.1 million in the previous quarter and positive for a third consecutive quarter. Direct costs were broadly unchanged at $2.47 million, as additional computing costs for new AI product trials offset some of the savings elsewhere.
Cash increased to $11.2 million at 30 September, from $10.2 million at the end of June. Including a fully undrawn $5 million loan facility, total available funding reached $16.2 million. The facility, provided by significant shareholder Thorney Investment Group, matures on 31 January 2027 and carries an 8% interest rate on drawn funds, plus establishment and line fees.
Daisee Deal Moves Towards Completion
Dubber is still finalising due diligence and contract novations for its proposed acquisition of selected Daisee assets, a transaction previously announced at up to $1.25 million. The deal covers customer contracts, intellectual property, technology and selected supplier contracts associated with annual recurring revenue of just under $1.7 million.
The consideration includes $1 million in cash across three tranches and up to $250,000 in shares, subject to retaining the stated revenue at the 12-month anniversary and shareholder approval. The transaction is expected to close in the coming weeks, but it has not yet completed. Dubber says the acquisition would add specialist AI capability in finance, insurance and other verticals.
Product Launches Become the Next Test
Dubber has soft-launched Notes and is piloting Voice AI, while preparing new sales and service tools, business intelligence modules and mobile applications. It expects to launch new revenue products as part of the Vodafone migration in November and anticipates its broader Dubber Notes launch in Q2 FY27.
The roadmap also includes specialist insurance and finance AI in early 2027 and live transcription during 2027, although the company cautions that timing and scope may change. Alongside those initiatives, it is migrating customers from the legacy Aeriandi platform, shifting a North American customer base to AWS and reviewing AWS and Azure spending.
The quarter therefore leaves Dubber with a useful but unfinished proposition: cash generation has improved, yet recurring revenue has not accelerated and the next phase depends on converting product investment into sales. The Daisee closing, customer retention and the performance of the new AI offerings will provide the clearest evidence of whether the leaner business can grow without surrendering its newly positive cash profile.
Bottom Line?
Dubber has bought itself financial breathing room; the harder task is now proving that AI launches can restart recurring revenue growth.
Questions in the middle?
- Can Dubber keep operating cash flow and normalised EBITDA positive as product investment increases?
- Will the Daisee transaction complete on its proposed terms and retain the targeted $1.7 million of annual recurring revenue?
- Can Notes, Voice AI and the planned vertical products lift exit ARR above its $29 million September level?