• Continued growth in recurring revenue driven by higher ARPU
• Robust EBITDA margin of 21% while investing in brand marketing
• Successful migration of all customers onto single tradie platform

hipages Group Holdings Ltd (ASX: HPG), Australia and New Zealand's leading platform to connect homeowners and tradies, has announced its financial results for the six months ended 31 December 2024 (H1 FY25). The Group delivered a positive financial result, with marketplace activity remaining near record levels and the Group's efficient operating model generating positive free cash flow. Recurring revenue grew 11% to $39.2 million, driven by a 9% increase in ARPU to $2,267. The Group's EBITDA margin remained robust at 21%, despite increased investment in brand marketing. A key strategic milestone was reached with the successful migration of all Australian tradie customers onto the Group's single tradie platform (STP). This transition is expected to drive improved retention and engagement. In New Zealand, the transition to a full subscription model also sets the business up for continued ARPU growth and margin expansion. For the full year FY25, the Group has updated its revenue target to $83-$84 million, with expectations for EBITDA margin expansion to 23-24% and free cash flow of $5-$6 million.

For the full year FY25, the Group has updated its revenue target to $83-$84 million, with expectations for EBITDA margin expansion to 23-24% and free cash flow of $5-$6 million.

In the second half, the Group is focused on delivering additional tradiecore functionality and accelerating adoption. The benefits of the platform migration are expected to continue driving revenue growth, margin expansion, and free cash flow generation.