Highlights

• Management says the quarter was one of execution, with attention on turning its sales pipeline into live recurring.

• New annual subscription contract wins totalled $505,000, which the company describes as roughly double the prior period: $106,000.

• The confirmed milestones are further staged pilots of the NAB Integration Service ahead of full release, the expected.

• The quarterly update outlines operational developments and financial measures alongside upcoming milestones and unresolved conditions for investors.

Urbanise.com (ASX:UBN) — a software provider to strata and facilities management businesses, has reported its first-quarter FY27 update for the quarter ended 30 September 2026. The company reaffirmed its target of exiting FY27 with positive operating cash flow, while acknowledging that cash flow is expected to remain negative in the second quarter as development spending is accelerated. All figures are unaudited.

The central development

Management says the quarter was one of execution, with attention on turning its sales pipeline into live recurring revenue and delivering the Urbanise NAB Integration Service, previously called Data and Payments Integration Services. The first key automation module has been implemented, and integration with the first class of NAB accounts is now available to all customers. Further staged pilots are planned before a full release, so the service has not yet reached general availability.

Revenue and recurring income

Total revenue was $3.614 million, 2.2 per cent below the prior corresponding period. Annual subscription fees were $3.136 million, with Strata contributing $1.932 million and facilities management (FM) $1.204 million. Professional fees were $478,000, higher than a year earlier, largely from NAB Partnership services in Strata, recognised on a percentage-of-completion basis, and increased FM implementation activity.

Annualised recurring revenue (ARR) was $13.2 million and contracted ARR was $13.9 million, each about 1 per cent lower than a year earlier. Licence fees represented 86.8 per cent of total revenue.

Contract wins

New annual subscription contract wins totalled $505,000, which the company describes as roughly double the prior period: $106,000 in Strata and $399,000 in FM. New professional fee wins were $116,000. Highlights included nine conversions from legacy Strata platforms and a large education provider in FM. Urbanise also said AI-assisted migration processes cut migration time by 80 per cent, to six weeks, for a customer managing 7,000 lots. Contract wins are not yet revenue; the company notes that contracted revenue depends on customer go-live timing.

Cash and balance sheet

Cash receipts from customers were $2.659 million. Net operating cash outflow was $1.717 million, compared with about $3.1 million a year earlier, a period that included one-off costs tied to the NAB Partnership contract. Closing cash was $10.143 million, down from $11.902 million at the end of the previous quarter. Urbanise reports no debt and no undrawn facilities.

A $2.1 million increase in receivables, linked to a new billing system rollout, weighed on the quarter's working capital. Management expects this to unwind from the second quarter of FY27. The company calculates a funding runway of six quarters at the current rate of operating cash outflow and answered no to whether it plans to raise further cash.

Risks and conditions

The company identified several headwinds. Two Middle East customers have reduced their volume and functionality requirements, contributing to FM churn and lower Middle East revenue, and there was minor churn and contraction in Strata. Receivables collections were $657,000 lower than in the previous quarter. Operating cash flow is expected to stay negative in the second quarter, and the positive-cash-flow target for the end of FY27 relies on working capital unwinding and traction in the core business, which are management expectations rather than outcomes. The NAB service remains in staged pilot.

What to watch next

The confirmed milestones are further staged pilots of the NAB Integration Service ahead of full release, the expected unwinding of the receivables build from the second quarter of FY27, accelerated development investment through the second and third quarters, and the stated aim of positive operating cash flow by the end of FY27. Investors should read the full Appendix 4C and quarterly report for detail.