Key Highlights

  • Operating expenses fell 11.0% to A$8.9 million, with employee costs down 17.5% to A$4.4 million
  • Group GMV rose 13.0% to A$244.9 million while revenue declined 17.2% to A$11.1 million
  • Escrow.com GMV reached A$216.9 million, up 18.6%, and Loadshift revenue climbed 18.0% to A$1.1 million
  • An operating profit of A$0.1 million followed an A$0.3 million operating loss in 1H26, with cash of A$16.5 million and no debt

Freelancer Limited (ASX:FLN) returned to operating profit in the quarter to 30 September 2026 (3Q26), at A$0.1 million against A$0.5 million in 3Q25, after an A$0.3 million operating loss in 1H26. Operating expenses decreased 11.0% to A$8.9 million. Gross Marketplace Value (GMV) for the group rose 13.0% to A$244.9 million, while group revenue declined 17.2% to A$11.1 million. Cash was A$16.5 million at quarter end and the group remains debt-free.

Group Costs, Revenue and Cash

Operating expenses were A$1.2 million lower than a year earlier. Employee expenses fell 17.5% to A$4.4 million on lower headcount, hosting fell 9.6% to A$1.5 million and marketing fell 8.7% to A$1.5 million. Administration was the only line to rise, up 8.8% to A$1.5 million, reflecting AI tooling and added compliance costs at Escrow.com. Gross profit declined 16.1% to A$9.6 million and EBITDA came to A$0.7 million, down from A$1.4 million in 3Q25. In US dollar terms, GMV rose 21.9% to US$172.9 million and revenue fell 10.8% to US$7.8 million, as a lower US dollar reduced reported Australian dollar results. Cash decreased A$1.4 million from A$17.9 million at 30 June 2026 on lower net deposits, while cost savings of more than A$4 million on an annualised basis have been realised.

Freelancer Marketplace

Freelancer revenue fell 26.3% to A$6.8 million, or 20.5% to US$4.8 million, against a 23.2% fall in 1H26, while GMV declined 27.6% to A$19.1 million, or 21.7% to US$13.5 million. The three issues named at 1H26 were login friction from enhanced security measures, fewer organic search visitors after AI scraping disrupted the site, and lower payment acceptance at certain gateways. Google now indexes about 5 million pages, against about 1.2 million when the quarter began, and organic signups from Google search averaged 37,000 a week, 25% above the November-December 2025 trough but 16% below 3Q25. Counts of new employers, projects and paying employers stood around 33% below 3Q25. Average project size rose 25% to US$498, projects drew 63 bids on average against 58 in 3Q25, and AI-related work reached 7.7% of project GMV against 5.7%.

Enterprise work included a new engagement under NASA's NOIS3 program and continued innovation challenges for the National Institutes of Health in the US. A field services pilot for a global payments provider started in July, with meetings delivered rising more than tenfold between July and August on unchanged headcount. Product changes covered AI-first Tier-1 support, Google Pay and testing of AI-powered bid search and language-matched bid ranking.

Escrow.com and Wholesale Electronics

Escrow.com GMV grew 18.6% to A$216.9 million, or 28.0% to US$153.1 million. Revenue fell 2.4% to A$3.1 million but rose 5.3% to US$2.2 million, as slower domain market activity over the northern hemisphere summer held revenue back. Wholesale electronics, which is new to Escrow.com in FY26, accounted for 12.8% of GMV and is its fastest-growing vertical, after more than 25 meetings with resellers of servers and hardware. The business moved its site front end onto a new platform, switched on domestic US dollar processing through JPMorgan Chase and started an international US dollar rollout. A dedicated electronics workflow is planned for 4Q26.

Loadshift Record Quarter

Loadshift revenue rose 18.0% to A$1.1 million and GMV climbed 16.9% to A$8.9 million, its best quarter on record. September revenue was A$0.38 million (up 13.7%) and GMV was A$3.1 million (up 9.0%). Loads awarded rose 14.8% to 4,032, with the award rate at 29.9% against 28.3%. Estimate Only loads saw their call connection rate rise to 93% from 21% after PSTN calling went live in July. Paid memberships were up 58% at 560 on 30 September 2026, 40 accounts moved to enterprise membership, and enterprise GMV rose around 15% to A$1.8 million. A load valued at A$0.3 million, the largest in its history, was awarded in late September and is not reflected in 3Q26 results.

The Numbers in Brief

Freelancer reported an operating profit of A$0.1 million for 3Q26 on operating expenses of A$8.9 million, down 11.0%. Group GMV was A$244.9 million, up 13.0%, and revenue was A$11.1 million, down 17.2%. Escrow.com GMV reached A$216.9 million, Loadshift revenue was A$1.1 million, and Freelancer revenue fell 26.3% to A$6.8 million. Cash at 30 September 2026 was A$16.5 million, with no debt.