Highlights

• Tinybeans Group Ltd the family memory-keeping platform, has released its first-quarter FY27 update for the quarter ended 30.

• The company reports adjusted EBITDA of US$65,000, a profit, compared with a US$125,000 loss a year earlier.

• Chief executive Tracy Cho said the company is concentrating on attracting new parents and showing them value from.

• The company is also repositioning from private photo sharing towards lifelong family memory keeping, with partnerships including a.

Tinybeans Group Ltd (ASX:TNY) — the family memory-keeping platform, has released its first-quarter FY27 update for the quarter ended 30 September 2026. The company reports higher revenue than a year earlier, an adjusted profit and a marginally positive operating cash flow. All figures are unaudited and in US dollars unless stated.

Central development

Total revenue was US$1.602 million, compared with US$1.184 million in the same quarter a year earlier. Subscription revenue rose to US$1.395 million from US$0.803 million, and e-commerce revenue, which includes photo products, was US$127,000 against US$14,000. Other revenue fell to US$80,000 from US$367,000. Gross profit was US$1.331 million.

The company reports adjusted EBITDA of US$65,000, a profit, compared with a US$125,000 loss a year earlier. Adjusted EBITDA is a non-IFRS measure that excludes stock-based compensation, and it is not audited.

Business and product focus

Chief executive Tracy Cho said the company is concentrating on attracting new parents and showing them value from their first use of the platform. Tinybeans reports that Tinybeans+ trial activation increased after changes to onboarding and the paywall, and that Dean Fankhauser joined as Head of Product after quarter end. His appointment followed a September product growth audit that identified more than 60 opportunities across onboarding, activation, subscription conversion and lifecycle engagement.

The company is also repositioning from private photo sharing towards lifelong family memory keeping, with partnerships including a London launch with Mother Euro and a fathers' memory-keeping challenge with Dad Day. The announcement cites roughly 92,000 paid subscribers in its headline and about 95,000 in its boilerplate, so the exact figure is not clear.

Cash flow

The Appendix 4C shows receipts from customers of US$1.416 million. Operating payments comprised product and operating costs of US$366,000, advertising and marketing of US$153,000, staff costs of US$469,000 and administration of US$636,000. Government grants and tax incentives contributed US$217,000, which relates to an Australian research and development refund for the year ended 30 June 2025. Net operating cash flow was a US$10,000 inflow, the fourth consecutive positive quarter.

Without the refund, operating cash flow would have been negative by roughly US$207,000, based on the reported figures. Investing outflows of US$245,000 related to intellectual property and product development. Closing cash was US$1.411 million, down from US$1.641 million at the start of the quarter, a net decrease of US$230,000. The company reports no debt and no undrawn facilities. Payments to related parties were US$49,000.

Subscription metrics

Tinybeans reports average revenue per user of US$76 and retention of 95 per cent for its core product, while the Qeepsake product, acquired earlier, recorded US$61 and 77 per cent respectively. Customer acquisition cost rose to US$57 for Tinybeans from US$35 in the prior quarter and to US$61 for Qeepsake from US$43. Management attributes this to continued acquisition investment, and the company says it is prioritising early-stage conversion to improve returns on that spending.

Risks and caveats

The company's own figures show that growth in revenue has coincided with higher spending to win customers, so the sustainability of its margins will depend on conversion and retention.

The operating metrics are not statutory measures, and the company notes the announcement contains forward-looking statements that may differ materially from outcomes. The positive operating cash flow depended on a government refund, cash reserves are modest, and acquisition costs are rising.

Next milestones

Management expects the holiday period, including Black Friday and Cyber Monday, to be the strongest for photo books, cards and gifting in the December 2026 quarter. The company also plans two New York events with partner brands next quarter.