8common Reports 16% SaaS Revenue Growth, Narrows Loss to $0.79M in FY25
8common Limited reported a significant narrowing of its net loss for FY25 alongside a 16% growth in SaaS revenue and improved gross margins, positioning the company for profitability in FY26.
- FY25 revenue declined 11% to $7.3 million
- Net loss after tax improved from $2.55 million to $0.79 million
- EBITDA nearly breakeven with $19k loss for full year, $326k profit in 2H FY25
- SaaS revenue grew 16% year-on-year to $5.1 million
- Gross margin expanded from 58% to 76.5% through infrastructure and AI enhancements
Financial Performance and Margin Expansion
8common Limited (ASX, 8CO) has delivered a marked improvement in its financial results for the year ended 30 June 2025. Despite an 11% decline in total revenue to $7.3 million, the company significantly narrowed its net loss after tax to $793,946 from $2.55 million in the prior year. This progress was underpinned by a near breakeven EBITDA result of a $19,000 loss for the full year, including a $326,000 profit in the second half, signaling operational momentum.
The company’s gross margin expanded impressively from 58.4% in Q1 FY25 to 76.5% in Q4 FY25, driven by major infrastructure and billing technology upgrades. These enhancements, coupled with AI integration across product development and business processes, have improved efficiency and cost management, setting the stage for sustainable profitability.
SaaS Growth and Client Wins
SaaS and transaction revenue grew 16% year-on-year to $5.1 million, reflecting strong adoption of 8common’s flagship Expense8 travel and expense management platform. The company expanded its footprint in government and enterprise sectors, onboarding new clients such as the National Anti-Corruption Commission, Australian Institute of Marine Science, and Net Zero Economy Authority. Recurring revenue streams now total an annualised recurring revenue (ARR) of $5.4 million, up from $5.0 million in FY24.
CardHero, the company’s prepaid card and fund distribution solution, achieved operational cashflow positivity and contributed $466,000 in revenue, with recurring SaaS and transaction revenue up 31% year-on-year. This diversification into not-for-profit and community sectors complements 8common’s government and corporate client base.
Liquidity and Going Concern Considerations
Despite the positive operational trends, 8common reported net current liabilities of $1.79 million and a modest cash balance of $102,000 at year-end. Management remains confident in the company’s going concern status, supported by a $1.5 million financing facility from Executive Chairman Kah Wui Nic Lim. Cost efficiency initiatives have stabilized the operating cost base, and multi-year contracts with major clients provide recurring revenue visibility.
Strategic Outlook and Risks
Looking ahead, 8common aims to leverage AI-driven efficiencies and SaaS growth to achieve full-year positive cashflow and profitability in FY26. The company plans to deepen government and enterprise relationships and accelerate client onboarding through its partner program. However, risks remain, including client concentration in government contracts, rapid technological change, regulatory shifts, and cybersecurity challenges. The company continues to invest in product development and governance to mitigate these risks.
With a stable board and executive team, ongoing remuneration reviews, and a clear strategic focus, 8common is positioning itself for a milestone year ahead.
Bottom Line?
8common’s FY25 results mark a turning point, but investors should watch closely for sustained SaaS growth and liquidity management in FY26.
Questions in the middle?
- Can 8common sustain SaaS revenue growth amid competitive pressures and evolving client needs?
- How will the company manage its net current liabilities and cash position without dilutive capital raises?
- What impact will AI integration have on long-term product differentiation and client retention?
