Airtasker’s Heavy Media Spend Drives Negative EBITDA Despite Growth
Airtasker Limited reports its second consecutive year of positive free cash flow alongside a 29% jump in marketplaces revenue, driven by explosive growth in the UK and US markets.
- Second consecutive full year of positive free cash flow at $1.2 million
- Marketplaces revenue growth accelerates to 28.9% in Q4 2025
- UK marketplace GMV ARR hits $21 million with revenue up 105%
- US marketplace GMV ARR reaches $7.5 million with revenue up 755%
- Strong cash position of $19.1 million supports international expansion
Robust Financial Performance
Airtasker Limited has delivered a compelling financial update for the quarter and full year ending June 2025, marking its second consecutive year of positive free cash flow. The company reported $1.2 million in free cash flow for FY25 and maintained positive cash flow for the fourth consecutive quarter, underscoring operational resilience amid aggressive growth initiatives.
Group revenue grew 13% year-on-year to $52.7 million, with a notable acceleration in marketplaces revenue growth to 28.9% in the final quarter. This momentum was fueled by strong consumer demand and strategic improvements in marketplace reliability and yield management.
International Marketplaces Drive Growth
The UK and US marketplaces emerged as standout performers. Airtasker’s UK marketplace achieved a gross merchandise volume annualised run rate (GMV ARR) of $21 million, with revenue more than doubling to £512,000 in Q4, reflecting a 105% increase year-on-year. This surge was supported by expanded market penetration in key cities like Birmingham and Manchester, alongside significant brand investment through Channel 4 advertising.
Meanwhile, the US marketplace experienced exponential growth, with revenue soaring 755% to US$188,000 in Q4 and GMV ARR reaching $7.5 million. This growth was driven by new city launches in Austin and Las Vegas and leveraged media partnerships with TelevisaUnivision, iHeartMedia, Sinclair, and Mercurius, which provided substantial advertising support.
Strategic Investments and Cash Position
Airtasker’s strong cash position of $19.1 million at quarter-end underpins its ongoing investment in international expansion. The company deployed $9.7 million into new marketplaces, primarily through non-cash media advertising convertible notes with key media partners, which contributed to a negative group EBITDA of $7.2 million for the quarter. Despite this, the established Australian marketplaces delivered positive net EBITDA of $2.5 million after covering global head office costs.
These convertible notes, issued to media companies such as Channel Four Television Corporation and iHeartMedia, represent a strategic approach to funding marketing efforts without immediate cash outlays, although they contribute to ongoing negative EBITDA expected to continue into FY26 as Airtasker scales its global footprint.
Outlook and Market Positioning
CEO Tim Fung expressed optimism about the company’s trajectory, highlighting the accelerated revenue growth and sustained positive cash flow as validation of Airtasker’s global mission. The company anticipates seasonal moderation in UK and US marketplaces in the near term but remains confident in its long-term growth strategy bolstered by strong media partnerships and expanding user bases.
As Airtasker balances rapid international expansion with disciplined cash management, the market will be watching closely to see how these investments translate into profitability and market share gains in FY26 and beyond.
Bottom Line?
Airtasker’s bold international push and solid cash flow set the stage for a pivotal year ahead, but sustained profitability remains the key challenge.
Questions in the middle?
- How will Airtasker manage the expected negative EBITDA in FY26 while scaling its international marketplaces?
- What impact will the convertible note obligations have on future cash flows and shareholder dilution?
- Can Airtasker sustain the rapid growth in the US and UK markets beyond seasonal demand spikes?
