• Record Annual Recurring Revenue (ARR) of $9.7m
• Successful execution on product development roadmap
• EBITDA positive at $0.1m despite increased investment

Knosys Limited (ASX:KNO) has reported its first half FY2025 financial results, highlighting a number of key achievements. The company recorded a record Annual Recurring Revenue (ARR) of $9.7m, driven by new customer acquisitions, enterprise contract renewals, and increased revenue per customer. Total revenue for the quarter was $5.4m, up 2% on the prior corresponding period, reflecting strong client retention and low volatility, recurring revenue streams. Knosys successfully executed on its product development roadmap, delivering significant enhancements to its existing product suite and launching a new mobile Library App, which is a major milestone for the company. Despite the increased investment in library-tech, Knosys maintained disciplined cost control, resulting in positive EBITDA of $0.1m, down $0.5m on the prior corresponding period. The net loss after tax of $0.3m includes the impact of non-cash charges of $0.4m for amortisation of intangible assets. The operating cash outflow of $0.7m reflects the fluctuation in timing of annual fee receipts from key customers and the increase in product development. Knosys ended the period with a cash balance of $3.5m, which has since increased to $4.3m as of 25 February 2025. The company is investing to take itself into the next generation of market-leading library-tech solutions, with the product development program on track and new commercial revenue streams and customer acquisition expected from FY26 onwards.

Future revenue stability underpinned by strong enterprise client contract renewals and increased revenue contribution from new product development expected from FY26 onwards.