How Hubify Reversed Losses to Post Positive EBITDA and Build Cash in FY25
Hubify Limited reports a significant turnaround in FY25 with positive EBITDA and a robust cash position, despite a strategic revenue decline. The company’s focus on recurring managed services and cybersecurity positions it well for future growth.
- Statutory loss narrowed to $813,909 from $4.72 million in FY24
- EBITDA doubled to $0.35 million, reflecting operational improvements
- Revenue declined 9% to $17.9 million due to strategic focus on profitability
- Recurring revenue now 87% of total, driven by managed and cybersecurity services
- Strong cash balance of $2.8 million with zero debt supports growth ambitions
Financial Turnaround Amid Strategic Shift
Hubify Limited (ASX – HFY) has reported a marked improvement in its financial performance for the year ended 30 June 2025, signaling a successful pivot towards a more sustainable business model. The company posted a statutory loss after tax of $813,909, a substantial improvement from the $4.72 million loss recorded in the prior year. More notably, Hubify achieved a positive EBITDA of $0.35 million, more than doubling its previous result, underscoring the effectiveness of its cost optimisation and strategic realignment.
Revenue Decline Reflects Strategic Prioritisation
Total revenue declined by 9% to $17.9 million, a deliberate outcome as Hubify exited non-core and less profitable activities. This revenue contraction is offset by a shift towards higher-quality, recurring revenue streams, which now constitute 87% of total revenue. The company’s managed services and cybersecurity offerings have been key drivers, with managed services revenue growing by 4% and professional services surging 42%. This transition reflects Hubify’s evolution from a mobility reseller to a full-service technology solutions provider.
Robust Balance Sheet and Cash Flow
Hubify closed FY25 with a strong cash position of $2.8 million, including $0.8 million in term deposits, and maintained a debt-free balance sheet. The company generated positive operating cash flow of $0.35 million, aligning with its EBITDA performance. This financial strength provides a solid foundation for Hubify’s dual strategy of organic growth and selective acquisitions, particularly in areas such as AI and cybersecurity, which are poised for expansion amid shifting market priorities.
Management Confidence and Market Positioning
CEO Victor Tsaccounis highlighted the successful return to profitability following the company’s transformation, emphasizing a disciplined focus on profitable revenue and exiting unsustainable customer engagements. The Board expressed confidence in management’s ability to drive further growth and operational leverage, supported by mature processes and a robust governance framework. Hubify’s positioning as a trusted IT, cybersecurity, and communications partner for Australian medium-sized businesses aligns with accelerating digital transformation trends and increased investment in technology solutions.
Risks and Outlook
Hubify acknowledges ongoing risks including competitive pressures, supplier dependencies, cyber threats, and reliance on key personnel. However, the company’s comprehensive cybersecurity capabilities and proactive risk management strategies aim to mitigate these challenges. With a clear strategic focus and improved financial footing, Hubify is well placed to capitalise on emerging opportunities in the technology services sector.
Bottom Line?
Hubify’s FY25 results mark a pivotal step towards sustainable growth, but investors will watch closely for continued revenue momentum and execution on its growth strategy.
Questions in the middle?
- Can Hubify sustain and accelerate growth in its managed and cybersecurity services?
- What impact will AI integration have on Hubify’s service offerings and margins?
- How will the company manage competitive and supplier risks amid market shifts?
