Hiremii’s two-quarter funding measure raises pressure on AQYR execution

Revenue falls as Hiremii absorbs a difficult quarter

Hiremii Limited (ASX:HMI) is trying to turn a recruitment business into an AI-powered workforce intelligence company, but its first quarter of FY2027 moved in the opposite financial direction. Revenue fell 11.1% from a year earlier to A$7.056 million, while adjusted EBITDA deteriorated to a loss of A$0.356 million from a A$0.163 million loss in Q1 FY2026.

The result also marked a sharp reversal from the preceding quarter, when Hiremii reported positive adjusted EBITDA of A$0.197 million and gross profit of A$1.149 million. Q1 gross profit was A$0.758 million, down 3.2% year on year and 34.1% quarter on quarter, although gross margin improved to 10.7% from 9.9% a year earlier. The company attributed the quarter’s weaker earnings to poorer gross-profit performance across its divisions, a changed revenue mix and higher costs linked to technology sales and recruiter expansion.

AQYR launches two workforce intelligence products

The strategic pivot is nevertheless producing tangible product releases. During the quarter, Hiremii launched Insights, which assesses talent supply, demand, salary expectations, competing employers and offer competitiveness, and Talent Search, which allows recruiters to search internal, company and wider market databases using plain-language instructions.

The Western Australian candidate database expanded more than fourfold, from about 50,000 records to approximately 220,000, concentrated in the energy, resources and infrastructure sectors. Technology revenue remains small at A$0.019 million, but it more than tripled from A$0.006 million in Q4 FY2026 as the customer count reached six. That early commercialisation follows the company’s initial SaaS customer wins, which established the first recurring contracts for its AI platform.

Cost cuts are intended to change the December quarter

Management says cost-saving measures were actioned in October as the business mix and technology commercialisation status changed. Hiremii expects those measures, together with improved activity across renewable energy, permanent recruitment and workforce mobility, to move the company towards positive net operating cash flow in the December quarter.

That remains a forward-looking expectation rather than a demonstrated outcome. Reported net cash used in operating activities was A$0.893 million, including a one-off A$0.399 million payment associated with the transition to Payday Super. Excluding that payment and other one-off items, underlying operating cash use was A$0.228 million, an improvement from A$0.347 million in the prior corresponding quarter.

Funding depends on invoice finance and execution

Cash on hand fell to A$0.875 million from A$1.298 million at 30 June 2026. Hiremii drew A$0.700 million under its Octet invoice finance facility and repaid A$0.098 million of borrowings during the quarter, leaving A$0.913 million of unused working-capital facilities and total available funding of A$1.789 million.

On the standard Appendix 4C calculation, that represented 2.002 quarters of funding based on the quarter’s reported operating cash use. Hiremii presents a materially longer near-eight-quarter estimate using the underlying A$0.228 million cash-use figure before further cost reductions. The difference makes the December quarter an important test of whether the company’s adjusted cash measure becomes the more representative one.

Rebrand approved as Hiremii targets recurring revenue

Shareholders approved the company’s name change to AQYR Ltd at the 27 October annual general meeting, completing a key step in the AQYR rebrand plan. The company expects to trade under ASX code AQ1 once ASIC and ASX processes are complete.

The new identity is designed to match the stated strategy: grow recurring SaaS revenue, expand workforce intelligence products, improve margins in Workforce Solutions and maintain tight cost control. The next quarter will show whether the rebrand is accompanied by measurable progress in revenue quality, platform adoption and cash generation, rather than simply a change of sign above the door.