• Double-digit revenue growth of 11% to $44.9 million
• EBITDA margin expansion of 4ppts to 25%
• Strong free cash flow generation of $4.3 million

The hipages Group (ASX:HPG) reported a strong performance for the six months ended 31 December 2025 (H1 FY26), delivering double-digit revenue growth, EBITDA margin expansion and a significant increase in free cash flow generation. Revenue from ordinary activities grew 11% to $44.899 million, driven by a 12% increase in recurring revenue and 9% growth in Monthly Recurring Revenue (MRR) to $7.5 million. The Group's ARPU (Annual Revenue Per User) increased by 10% to $2,497, reflecting the successful migration of tradie businesses to new pricing plans. EBITDA before significant items rose 29% to $11.182 million, with the EBITDA margin expanding by 4 percentage points to 25%, driven by higher ARPU and operating leverage. The Group generated strong positive operating cash flows of $12.877 million and free cash flow of $4.332 million, a significant improvement over the prior corresponding period. At 31 December 2025, the Group held $31.1 million in cash, cash equivalents and funds on deposit, with no debt. Looking ahead, the Group has provided FY26 guidance, targeting revenue of $90 million to $91 million, EBITDA margin of 24% to 26%, and free cash flow of $8 million to $10 million.

For FY26, the Group targets revenue of $90 million to $91 million, EBITDA margin of 24% to 26%, and free cash flow of $8 million to $10 million.

Beyond FY26, the Group will focus on three key areas: 1) driving growth in the core marketplace, 2) expanding job management functionality, and 3) developing new adjacent services across the ecosystem to monetize households and drive new revenue streams.