• Strategic partnership with NAB for data and payments integration services
• NAB to acquire 15% stake in Urbanise with option for further 4.99% stake
• Expected annual revenue of $4.6 million in year 1, with $3.3 million upfront and $1.3 million in milestones

Urbanise.com Limited (ASX: UBN) has announced a strategic partnership with National Australia Bank Limited (ASX:NAB) for the development, implementation and ongoing delivery of Data and Payments Integration Services for Australian Strata customers. Under the Commercial Partnership Agreement, Urbanise will be paid by NAB upfront and on a recurring basis for building, implementing and maintaining the Data and Payments Integration Services. Urbanise will also receive from NAB an ongoing variable platform fee for supporting NAB and Urbanise customers using the new solution expected to be launched in early 2026. Under the Equity Investment Agreement, NAB has subscribed for 15% of Urbanise's share capital via a placement and may also subscribe for a further 4.99% of Urbanise's share capital within 12 months of launch of the Data and Payments Integration Services. The strategic partnership is expected to have a positive impact on Urbanise's financial profile in future years and deliver superior outcomes for customers through the creation of new payments and banking capabilities for the strata industry. Urbanise CEO Simon Lee stated that the partnership highlights the significant opportunities in the strata banking market and the unique position of Urbanise's Strata platform.

The expected annual revenue to be received by Urbanise for performance in accordance with the strategic partnership is $4.6 million in year 1, of which $3.3 million is payable on signing and $1.3 million payable on achievement of three milestones within 12 months of signing, a Fixed Annual Fee of $1.3 million in subsequent years and additional variable platform fees with upside driven by adoption.

Urbanise has been cash flow positive for the past 3 quarters and expects to be cash flow positive in Q4 and overall for FY25. However, the company expects cash flow from operating activities to be negative in FY26 due to the investment to implement and deliver the partnership, but is targeting to be overall cash flow positive for the FY26 year. Once the timing differences have played out and the partnership gets traction, the company targets becoming cash flow positive in FY27 and beyond.