Xref Cuts Net Loss by Two-Thirds, Posts $2.3M Positive EBITDA
Xref Limited reported a significantly reduced net loss for FY2025 and a return to positive EBITDA, driven by strategic cost restructuring and a transition to a SaaS business model.
- Net loss narrowed to $1.95 million from $5.68 million in prior year
- Underlying EBITDA turned positive at $2.3 million versus negative $1.79 million
- Customer migration to SaaS subscription model sustained stable revenue
- New AI-driven products and platform enhancements launched
- Raised $3.6 million via private placement to fund growth initiatives
Financial Turnaround Amid Market Challenges
Xref Limited has delivered a markedly improved financial performance for the year ended 30 June 2025, reporting a net loss of $1.95 million, a substantial improvement from the $5.68 million loss recorded the previous year. This progress was underpinned by a return to positive underlying EBITDA of $2.3 million, reversing a negative EBITDA of $1.79 million in FY24. The company’s ability to stabilize revenue despite a downturn in recruitment activity reflects the successful transition of its customer base to a subscription-based SaaS model.
Strategic Shifts and Product Innovation
FY25 was a transformative year for Xref, marked by significant cost structure changes and a strategic review that included an unsuccessful public offer by Seek Limited. The company launched several new products, including AI-powered tools and a permissioning product, enhancing its platform capabilities. These innovations, alongside an expanded vendor network on its Trust Marketplace, helped Xref secure the No. 1 ranking on G2, reinforcing its position as a market leader in the HR technology space.
Capital Raising and Operational Efficiency
To support ongoing product development and marketing efforts, Xref raised an additional $3.6 million through a private placement. Cost management initiatives, including headcount reductions and office consolidations, contributed to improved operational cash flow, which turned positive at $1.3 million compared to a cash outflow in the prior year. These measures have positioned the company with a leaner operating model and enhanced financial flexibility.
Outlook for FY26
Looking ahead, Xref is focusing on targeted sales growth, leveraging technology to improve margins, and continuing its momentum in AI-driven product development. Despite ongoing market uncertainty, the company’s scalable technology platform and expanded addressable market provide a solid foundation for growth. The management team remains cautiously optimistic about navigating the turbulent market environment while capitalizing on emerging opportunities.
Bottom Line?
Xref’s strategic pivot and financial discipline have set the stage for a potentially stronger FY26 amid market volatility.
Questions in the middle?
- How will Xref’s AI product launches impact customer acquisition and retention?
- What are the implications of the unsuccessful Seek Limited offer on future strategic partnerships?
- Can Xref sustain positive EBITDA growth as it scales its SaaS platform?
