Hubify (ASX: HFY) has reported a return to profitability in the first half of the 2025 financial year, with earnings before interest, tax, depreciation, and amortisation (EBITDA) of $0.2 million, up from a $2 million loss in the prior corresponding period. The company also posted a positive underlying operating cash flow of $0.12 million and ended the period with $2.7 million in cash reserves, with no bank debt or outstanding contingent considerations.
Total revenue for the six months to December 2024 was $8.9 million, down 12% year-on-year, primarily due to a reduction in one-off hardware sales and the exit from the call centre lead generation business. However, recurring revenue rose to 88% of total revenue, reflecting the company’s shift towards managed services. Overheads were reduced by 37%, contributing to the improved financial performance.
During the half-year, Hubify secured a three-year contract renewal with a cornerstone client worth $3.45 million, reinforcing its position in IT service management, security, and cloud services. The company also expanded its customer service and help desk support by partnering with Ezee Mobile for a rollout in Chemist Warehouse stores.
CEO Victor Tsaccounis said the company is now positioned for growth after a challenging period in FY24. “The contract renewal by our cornerstone client is not just an extension; it’s a vote of confidence in Hubify’s expertise and a testament to our ability to deliver cutting-edge IT and cybersecurity solutions,” he said.
With its strengthened cash position and strategic investments, Hubify is exploring acquisition opportunities to further expand its presence in the managed services and communications sectors.
