• Revenue of $44.9m at top end of guidance range
• Gross Margin of 67%, up over 300bp vs prior year
• Adj. EBITDA of $4.8m, a record for Straker

Straker Ltd (ASX: STG) has reported its FY25 financial results, with revenue of $44.9 million at the top end of the guidance range of $43-45 million. The company's gross margin improved to 67%, up over 300 basis points compared to the prior corresponding period. Straker's adjusted EBITDA was $4.8 million, the highest in the company's history, marking the fourth consecutive year of positive adjusted EBITDA. The company's operating cash flow was $3.4 million, and it generated $1.2 million in free cash flow. Straker's cash balance grew to $12.9 million, or $0.20 per share, and the company remains debt-free. The company saw a decline in 'legacy' Language Services revenue, particularly in the EMEA region, which was partially offset by growth in the APAC region and in the Managed Services segment. Straker continues to focus on transitioning its revenue mix towards higher-margin, recurring, and AI-driven revenue sources such as AI Verify and the recently launched Swiftbridge solution. The company has also made significant progress in reducing operating expenses, with headcount down 15% year-over-year, primarily in the Production segment.

Straker expects the positive trends in gross margin and profitability to continue in FY26, driven by the full-year impact of AI Verify and other initiatives, including the launch of Swiftbridge and strategic partnerships.

Straker is well-positioned to respond to opportunities as they arise, with a robust balance sheet, a focus on cost management, and a transition towards higher-margin, recurring revenue streams.