COSOL Posts $116.8M Revenue, Below Guidance, Eyes Strong FY26 Growth
COSOL Limited reports FY25 revenue and EBITDA below guidance due to timing delays but highlights a 17% rise in operating cash flow and maintains optimistic FY26 growth forecasts.
- FY25 revenue of $116.8 million misses prior guidance
- Statutory EBITDA at $15.8 million below expected range
- Underlying EBITDA also falls short of previous estimates
- Net operating cash flow up 17% compared to FY24
- FY26 guidance unchanged with anticipated revenue and margin growth
FY25 Performance Update
COSOL Limited, a technology-enabled asset management solutions provider, has released an update on its financial performance for the fiscal year 2025. The company reported unaudited revenue of $116.8 million, which falls short of its earlier guidance range of $118 million to $121 million. Similarly, statutory EBITDA came in at $15.8 million, below the previously forecasted $16.3 million to $16.7 million range. On an underlying basis, EBITDA was $16.8 million, also missing the prior guidance of $17.3 million to $17.7 million.
Timing Issues Impact Results
The shortfall in revenue and earnings primarily reflects timing delays in closing several product sales that were expected to be finalised before the June 30 balance date but have now slipped into the next fiscal year. This timing shift has temporarily suppressed reported revenue and EBITDA for FY25, though it does not necessarily indicate a loss of business or demand.
Cash Flow Strength and Future Outlook
Despite the revenue and EBITDA misses, COSOL reported a 17% increase in unaudited net operating cash flow (excluding tax, interest, and other cash flows) to $13.4 million compared to FY24. This improvement in cash generation suggests operational efficiency and strong underlying business momentum.
Looking ahead, COSOL has maintained its FY26 guidance, expecting high single-digit revenue growth and margin expansion driven by higher-value contracts in data analytics and digital transformation. The company also anticipates strong double-digit growth in statutory EBITDA and earnings per share, signalling confidence in its strategic direction and market opportunities.
Next Steps and Market Implications
COSOL will release its audited FY25 results on August 20, 2025, alongside details of operational changes aimed at delivering higher margin organic growth in FY26 and beyond. Investors will be watching closely for clarity on these initiatives and how the company plans to accelerate growth after the timing-related hiccup in FY25.
Bottom Line?
COSOL’s FY25 timing delays temper near-term results but set the stage for a potentially stronger FY26 performance.
Questions in the middle?
- What specific operational changes will COSOL implement to drive margin expansion in FY26?
- How sustainable is the 17% increase in operating cash flow amid revenue timing shifts?
- Will the timing delays in product sales affect long-term client relationships or contract renewals?
