Xref Limited (ASX: XF1) today announced its audited financial results for the full year ended 30 June 2026 (FY26), highlighting significant growth and operational efficiencies. Xref is a technology company that provides a human resources platform, specialising in automated reference checking and identity verification services. Its platform supports organisations through the employee lifecycle, enhancing recruitment processes. The company reported an Underlying EBITDA of A$4.7 million, a 76% increase year-on-year from FY25. Group Annual Recurring Revenue (ARR) reached A$15.7 million, with A$11.2 million (over 71%) generated from its New Platform. The cash balance stood at A$2.3 million as of 30 June 2026. These results reflect accelerated market adoption of the New Platform and sustained margin expansion from the Group’s restructuring efforts.
Subsequent to the reporting period, Xref completed a key debt refinancing with the Commonwealth Bank of Australia (CBA). This move aims to extend the Group’s debt maturity, reduce near-term debt servicing obligations, and provide additional liquidity. The refinancing involved repaying the previous facility and securing a new A$6.3 million senior term facility with CBA, maturing in August 2029, notably with no principal repayments required until August 2028. An additional A$2.0 million overdraft facility has also been established. These new facilities are projected to reduce the annual finance outflow on the term facility from A$2.7 million in FY26 to an estimated A$0.5 million (interest only) through FY27, after an estimated A$0.3 million in setup costs. The Group is subject to customary financial covenants.
Xref’s founder and CEO, Lee Seymour, highlighted that delivering A$15.7 million in ARR and A$4.7 million in positive EBITDA showcases the operational leverage of their new software platform. He added that the CBA refinancing not only lowers debt payments and interest expense but also provides significant cash liquidity for continued profitable growth.
