This article first appeared on GuruFocus .
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Revenue:Increased 63% to AUD126 million, with 72% of growth generated organically.
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Adjusted EBITDA:Rose 50% to AUD30.8 million; excluding AUD3.8 million in Swiss startup costs, growth was approximately 69% to AUD33.8 million.
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Adjusted EBITDA Margin:Remained strong at 24.4%, down 220 basis points due to higher costs for aged debt resolution and Swiss investment.
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Underlying Profitability (NPAT):Increased 73% to AUD11.4 million.
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Free Cash Flow:Increased 56% to approximately AUD20 million.
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Cash Position:Closed the period with AUD17.4 million in cash, up 37% year-on-year.
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ANPR Sites Under Management:Increased 16% to 2,083 sites.
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PBN Issuance:Increased 12% to a record 1.2 million breaches.
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UK Revenue:Increased 62% to AUD84.9 million.
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UK Adjusted EBITDA:Increased 54% to AUD25.9 million, with margins over 30%.
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New Zealand Revenue:Increased 19% to AUD8.8 million, with EBITDA margins expanding to 46.7%.
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Germany Revenue:Increased 40%, with PBN issuance up 47%.
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US Revenue:Contributed AUD25.3 million in revenue and AUD6.3 million in adjusted EBITDA.
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Operating Expenses:Increased from AUD29.6 million to AUD38.1 million, driven by growth investments in Switzerland and the US.
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Effective Tax Rate:Increased to 40.7% from 15.7% in FY25.
Release Date: August 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record FY26 results with revenue up 63% to AUD126 million and adjusted EBITDA up 50% to AUD30.8 million, surpassing internal milestones.
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72% of revenue growth was organic, demonstrating strong underlying business momentum.
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UK business delivered fastest revenue growth in group (up 62%) with margins over 30%, aided by improved debt resolution processes.
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New Zealand achieved record EBITDA margin of 46.7% and expanded estate by 30%.
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US market showing promise with 30 ANPR sites under contract and recent acquisition of American Parking adding scale and key market presence.
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Strong cash generation with AUD20 million free cash flow and cash balance up 37% to AUD17.4 million, supporting self-funded growth and a new AUD5 million share buyback.
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Germany scaling well with 40% site growth and several months of EBITDA profitability in H2, expected to turn positive in FY27.
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Clear growth strategy with targets of 450-600 new ANPR sites in FY27 and long-term goal of 3,000 sites by December 2028.
Negative Points
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Adjusted EBITDA margin declined 220 basis points to 24.4% due to higher costs from aged debt resolution and investment in Switzerland.
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Switzerland incurred AUD3.8 million in establishment costs, with losses expected to continue into FY27 and breakeven not until FY28.
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Denmark faced regulatory changes leading to manual enforcement, resulting in higher costs and lower revenue, with losses expected to reduce only modestly in FY27.
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Effective tax rate increased significantly to 40.7% from 15.7%, impacted by taxable profits in UK/NZ and unrecognized losses in other territories.
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Foreign exchange movements negatively impacted reported revenue by approximately AUD2.9 million and adjusted EBITDA by AUD1 million.
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Enhanced debt resolution contribution is expected to decrease by AUD2 million to AUD5 million in FY27, reducing a key earnings driver.
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US business still in early stages with only 30 ANPR sites under contract, and integration of acquisitions carries execution risks.
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Germany's path to profitability is dependent on achieving site growth targets (190+ sites), with additional investments in sales and customer success teams adding costs.
Q & A Highlights
Q: Regarding the newly acquired American Parking business, are there any surprises versus initial expectations? A: Paul Gillespie (CEO) reported the acquisition is very positive. The company has already upgraded three locations to its ANPR solution. Notably, 20% of American Parking's sites are owned by the vendor and are secured under a five-plus-five-year lease, making them the first in line for ANPR upgrades. Early observations indicate significant opportunity, particularly in Tulsa and Oklahoma City.
Q: Has additional investment in Germany pushed the EBITDA breakeven point further out than initially expected? A: Paul Gillespie (CEO) confirmed that while the company experienced some breakeven months in the second half, it made a deliberate decision to increase investment in its customer success, operational, and sales teams. This added costs in the short term but is intended to capture the significant long-term growth opportunity in Germany's large addressable market.
Q: Does the AUD5 million share buyback signal a lack of M&A opportunities? A: Paul Gillespie (CEO) clarified that the buyback is a signal of confidence in the business, which they believe is undervalued at current share prices. The company maintains a disciplined M&A strategy and continues to evaluate an active pipeline of opportunities, but will only pursue acquisitions that fit their criteria.
Q: What is the expected contribution from enhanced debt resolution in FY27, and how does it compare to FY26? A: Paul Gillespie (CEO) stated that the improved debt resolution processes delivered an additional AUD7 million of EBITDA in FY26. For FY27, the contribution is expected to be around AUD5 million, which is AUD2 million less than the prior year. However, the process is expected to reach a steady state and then grow in line with PBN issuance, providing benefits for a long period.
Q: What are the key drivers for the expected earnings uplift in FY27? A: Paul Gillespie (CEO) outlined several positive swing factors: a full year's contribution from sites added during FY26, continued scaling in Germany with a target of over 190 sites to turn EBITDA positive, a reduced EBITDA loss in Switzerland (improving to AUD2.5 million), and a reduced loss in Denmark (from ~AUD3 million to ~AUD1.5 million). These factors are expected to drive a significant uplift in FY27 earnings.
Q: Can you provide more detail on the US market strategy and the potential for ANPR site growth? A: Paul Gillespie (CEO) highlighted the US as the largest growth opportunity, with around 2 billion parking spaces. The company has completed the integration of Peak Parking and acquired American Parking, bringing total sites to 210. They have 30 ANPR sites under contract and are proving their technology advantage. The CEO will be relocating to the US to oversee this expansion, with a target of 75-150 ANPR sites in the US by the end of FY27.
Q: What is the outlook for the UK market, the company's largest revenue contributor? A: Paul Gillespie (CEO) noted that PBN issuance returned to growth in the UK in the second half, up 8% versus the prior year. The UK business delivered the fastest revenue growth in the group at 62%, with adjusted EBITDA up 54% and margins over 30%. The company is targeting around 1,750 sites in the UK by the end of FY27.
Q: How is the company's balance sheet positioned to fund future growth? A: Richard Ludbrook (CFO) stated the group ended FY26 with AUD17.4 million in cash, up 37% year-on-year. They also have access to a USD10 million revolving credit facility and a further USD10 million accordion facility. This provides substantial flexibility to fund organic growth initiatives and accretive acquisitions, such as the recent American Parking acquisition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
