• Recurring revenue up 11% to $39m
• EBITDA up 4% to $9m
• Free cash flow of $1.2m, up from ($0.1)m in pcp
• Continued strategic evolution from marketplace to SaaS platform

hipages Group reported a strong H1 FY25 performance, with 11% growth in recurring revenue to $39m, 4% increase in EBITDA to $9m, and positive free cash flow of $1.2m, up from ($0.1)m in the previous corresponding period. The company's balance sheet remains robust with $22.5m in cash and no debt. The strategic evolution from a marketplace to a SaaS platform model is progressing to plan, with the completion of the migration of all tradies to the Single Tradie Platform (STP) app and the ongoing migration of existing tradies to the new price plans. The company is seeing positive signs of higher retention on the first contract renewal from early STP user cohorts. The marketing investment in H1 was elevated to support brand marketing initiatives and tradie-focused campaigns, but this is expected to reduce in H2. Technology spend continues to be disciplined, with 75% of the total spend capitalized. In Australia, the company saw strong marketplace dynamics with near-record connection rates, driving ARPU growth of 8% to $2,374. In New Zealand, the transition to a full subscription model is driving ARPU growth, with further upside expected as the company leverages its experience from the Australian business. The company has provided FY25 targets of $83-84m in operating revenue, 23-24% EBITDA margin, and $5-6m in free cash flow.

FY25 targets: Operating revenue of $83-84m, EBITDA margin of 23-24%, and free cash flow of $5-6m.