Wrkr’s Strategic Spending Ahead of PayDay Super Sparks EBITDA Loss Concerns
Wrkr Ltd reports sustained positive operating cash flow and strategic investments positioning it for growth despite an anticipated FY25 EBITDA loss. The company’s landmark deals and platform enhancements signal readiness for upcoming regulatory reforms.
- Positive operating cash flow for second consecutive year
- Strategic $3.5m capital investment to scale platform and enhance security
- Landmark partnership secured with Australian Super
- International expansion with live Hong Kong pensions platform
- Anticipated FY25 EBITDA loss due to forward investment in growth
Strong Financial Foundation Amid Growth Investments
Wrkr Ltd (ASX – WKR) has reported positive operating cash flows for the fiscal year 2025, marking the second consecutive year of cash flow positivity since its 2016 listing. This achievement reflects the company’s successful delivery of development milestones, robust customer retention, and steady revenue growth across its core offerings.
Despite this encouraging cash flow performance, Wrkr anticipates an EBITDA net loss for FY25. The company attributes this to deliberate, strategic investments made ahead of revenue recognition, aimed at preparing its platform for the imminent PayDay Super reforms and scaling operations to meet expected client onboarding volumes.
Strategic Partnerships and Market Expansion
Wrkr’s commercial momentum is underscored by a landmark partnership with Australian Super, one of the largest superannuation funds in Australia. This deal not only validates the scalability of Wrkr’s platform but also positions the company as a key player in the superannuation compliance and payment technology space.
Further international expansion was achieved with the successful launch of Wrkr’s pensions platform in Hong Kong, developed in collaboration with MUFG and HSBC. This move demonstrates Wrkr’s capability to navigate complex regulatory environments and deliver tailored solutions beyond the Australian market.
Technology and Operational Enhancements
Capital expenditure of $3.5 million during FY25 focused on readying the Wrkr Platform for regulatory changes and operational scaling. Investments targeted platform security enhancements, the adoption of an API-first strategy, and automation improvements to accelerate onboarding processes for superannuation funds.
Wrkr also expanded its team by 20 employees and contractors over the year, including key hires in engineering, quality assurance, and business solutions architecture, reflecting the company’s commitment to delivering on its growing contract pipeline.
Outlook and Governance Strengthening
Looking ahead, Wrkr expects continued investment in FY26 to support the onboarding of Australian Super, additional Rest Super employers, and further MUFG fund transitions. These efforts are anticipated to drive substantial revenue growth beyond FY25 as the PayDay Super reforms take effect.
Governance has been bolstered with the appointment of Duncan McLennan to the board, bringing financial assurance and governance expertise to support Wrkr’s strategic objectives.
With a cash balance of $5.7 million and improved cash receipts, Wrkr remains focused on balancing tight cost management with investments critical to securing long-term market leadership in the digital transformation of superannuation compliance and payments.
Bottom Line?
Wrkr’s strategic investments and partnerships set the stage for growth, but investors should watch closely as revenue recognition catches up with upfront costs.
Questions in the middle?
- When will Wrkr begin to see revenue materialize from its Australian Super and Rest Super contracts?
- How will the upcoming PayDay Super reforms impact Wrkr’s platform adoption and revenue streams?
- What are the risks associated with Wrkr’s international expansion, particularly in regulatory compliance?
