Monvia’s ARR engine accelerates as enterprise pipeline expands

FY26 revenue and EBITDA edge past IPO forecasts

Monvia Limited (ASX:MNV) has used its first investor update as a listed company to put a solid set of numbers on the board: FY26 adjusted revenue reached A$27.7 million, 1% above the prospectus forecast, while adjusted EBITDA came in at A$6.9 million. That produced a 24.9% margin, ahead of the 24.0% forecast.

The company also reported A$5.1 million of pro forma net cash at 30 June 2026, based on A$11.1 million of pro forma cash and A$6.0 million of pro forma debt. The figures are presented on a like-for-like adjusted basis against the prospectus, making the comparison useful but distinct from statutory reporting.

Recurring revenue becomes a larger part of the business

The more important operating measure may be ARR. Contracted revenue rose to A$14 million at 1 July 2026 from A$12 million a year earlier, a 21% increase. Monvia said A$2.5 million came from price increases and expanded scope with existing clients, partly offset by a A$0.5 million reduction after one client was acquired.

Recurring revenue represented 43% of total revenue in FY26, up from 39% in FY25. Its five-year ARR compound annual growth rate stands at 28%, while net revenue retention has averaged 121% over five years. Gross revenue retention averaged 95% over the same period, although the company recorded a 4.1% ARR churn rate in FY26.

Customer concentration remains a clear counterweight to that retention story. The largest customer accounted for 62% of ARR at 1 July, up from 48% a year earlier. Monvia said MetLife renewed for five years from April 2026 with ARR growth, following the five-year MetLife renewal reported in its FY26 results coverage.

Pipeline expansion raises the stakes for FY27

Monvia said its enterprise sales pipeline was 3.5 times larger than in FY25, with multiple new enterprise opportunities in formal request-for-proposal processes. It is targeting conversion in Australia and New Zealand, while building opportunities in Southeast Asia and the Australian superannuation market.

The company has also signed a teaming agreement with Capgemini for ANZ insurance and superannuation opportunities. That relationship was flagged in the company’s recent quarterly update, where Monvia said the Capgemini teaming arrangement was intended to accelerate client opportunities. Monvia plans to progress joint opportunities and add another partner for market coverage.

FY27 growth comes with second-half execution risk

Management expects strong ARR growth at the FY27 year-end, but is forecasting flat total revenue against the prior comparative period. The tension is explained by the mix: recurring revenue is expected to increase, while professional services revenue is expected to be modestly lower. Revenue is also expected to be weighted towards the second half.

Full-year EBITDA is expected to be modestly above the prior year, with first-half EBITDA flat and second-half EBITDA higher as recurring revenue strengthens. The presentation does not provide formal numerical FY27 revenue or EBITDA guidance, so the forecast remains dependent on pipeline conversion, customer expansion and delivery across the latter part of the year.

Monvia is adding new platform modules and developing AI capabilities, including claims summarisation, which it says is already in production. The next tests are commercial rather than conceptual: whether those offerings generate incremental ARR, whether the Capgemini channel produces signed work, and whether the company can reduce its reliance on a handful of large customers while scaling.