Urbanise Reports $3.7M Q1 Revenue, $3.1M Cash Outflow Amid DPIS Build

Revenue Growth Fueled by NAB Partnership

Urbanise.com Limited (ASX, UBN) has kicked off FY2026 with a solid 12.4% increase in total revenue for the first quarter, reaching $3.7 million. This growth was largely driven by licence fees, which accounted for 88.2% of total revenue, and professional fees, both benefiting from the recently established partnership with National Australia Bank (NAB). The company secured $247,000 in new annual licence fees and $98,000 in professional fees during the quarter, highlighting ongoing momentum in both its Strata and Facilities Management (FM) segments.

Strategic Investment in DPIS Development

Urbanise is heavily investing in its Data and Payments Integration Services (DPIS), a new offering developed in collaboration with NAB. The company is currently focused on completing the discovery phase, which involves validating technical requirements, engaging early users, and aligning product design with regulatory standards. This phase is critical to setting clear timelines for product readiness and market launch. CEO Simon Lee emphasized that while operating cash outflows will continue through FY2026 due to DPIS development, these investments are aligned with Urbanise’s long-term growth strategy.

Cash Flow and Financial Position

Urbanise reported a net operating cash outflow of $3.1 million for the quarter, reflecting both the costs associated with the NAB partnership and increased investment in DPIS. Despite this, the company maintains a healthy cash balance of $12.8 million and carries no material debt. The outflows include one-off expenses such as recruitment and contract finalization costs, which are not expected to recur at the same scale. Urbanise is targeting a return to positive operating cash flow by FY2027 as the DPIS rollout gains traction and the partnership matures.

Market Expansion and Pipeline Opportunities

Sales performance was particularly strong in the Middle East North Africa (MENA) region and within the FM segment, with new contracts secured across public and private sectors. The FM pipeline in Australia and New Zealand is diverse, spanning aged care, education, utilities, and commercial property sectors, driven by demand for enhanced asset management and compliance solutions. Urbanise has also appointed a Chief Revenue Officer to accelerate enterprise-scale deals and improve sales conversion rates, signaling a strategic push to capitalize on a growing pipeline of high-value opportunities.

Looking Ahead

While the company expects continued cash outflows in FY2026 due to ongoing product development and partnership investments, the foundation laid in Q1 positions Urbanise for sustainable growth. The completion of the DPIS discovery phase will provide clearer visibility on development milestones and market readiness. Urbanise’s focus on high-quality recurring revenue streams and strategic partnerships suggests a pathway to improved financial performance and market expansion in the coming years.