• Sales growth of 4% year-over-year to $4.5m
• Positive EBITDA performance of $0.3m
• Annual Recurring Revenue (ARR) growth of 54% year-over-year to $10.6m
• Reduced operational expenses by 28% year-over-year to $4.6m

Xref Ltd (ASX:XF1) reported its unaudited financial results for the March Quarter FY26, highlighting strong sales growth, positive EBITDA performance, ARR growth, and reduced operational expenses. The company delivered $4.5 million in total sales, with the core Xref platform contributing $4.0 million, a 15% increase over the prior corresponding period (pcp). This included $1.2 million in multi-year agreements and $0.3 million in capacity extensions, a 1,600% increase on pcp. The company's transition to a comprehensive 'hire-to-retire' platform is resonating, with ARR for the new platform climbing to $10.6 million, reflecting a 54% increase year-over-year. Platform adoption grew well in Q3, with total active users rising to 5,734, representing a 72% increase on pcp. Xref's strategic focus on operational discipline resulted in a significant reduction in overheads, with operational expenses for the quarter decreasing by 28% to $4.6 million. The company's leaner cost base is expected to drive further margin expansion, with Q4 operational expenses projected at $3.8 million. Xref also launched a revitalised Self Sign-Up process to maximize conversion rates and compete more aggressively for the 'prosumer' and SME segments.

Xref is projecting Q4 operational expenses to fall to $3.8 million, which, combined with the company's increased sales and ARR growth, is expected to drive a strong finish to the fiscal year and deliver long-term shareholder value.

As Xref enters its busiest quarter, the company is well-positioned to capitalize on record lead flow and a significantly optimized cost base. The focus remains on accelerating new business, completing client migrations, securing renewals, and driving platform adoption. The company's new frictionless self-sign-up process and strategic integrations with global partners are expected to support efficient, high-margin client acquisition.