Key Highlights

• hipages Group (ASX:HPG) delivered FY26 Revenue of $90.6 million, up 9%, with annual Recurring Revenue reaching $95.6 million and recurring revenue accounting for 98% of group revenue.

• EBITDA increased 17% to a record $22.9 million with margins expanding to 25.3%, while free Cash Flow rose 66% to $9.4 million.

• The company acquired a majority stake in VIZ Insurance during FY26, expanding into adjacent financial services for trade businesses.

• FY27 guidance has been revised to the lower end of targets due to deteriorating economic conditions, with revenue growth of 9%-11% and EBITDA Margin of 25%-27% initially guided.

hipages Group Holdings Ltd(ASX:HPG), Australia and New Zealand's leading online home improvement marketplace, delivered its Chair and CEO addresses at its 2026 Annual General Meeting on 5 November 2026. The presentations outlined the company's FY26 financial performance and provided an update on its strategic transition from a marketplace to a multi-product platform serving trade businesses and households.

FY26 Financial Performance

The company posted FY26 revenue of $90.6 million, representing 9% growth year-over-year, with EBITDA expanding 17% to a record $22.9 million. The EBITDA margin improved to 25.3%, and free cash flow reached a record $9.4 million, up 66% from the prior year. Statutory net profit after tax increased to $15.0 million. CEO Roby Sharon-Zipser noted that every dollar of growth revenue generated during the year delivered 50 cents of free cash flow, highlighting the Operating Leverage within the Business model. Subscription ARPU increased 9% to $2,475, while the number of serviced businesses grew 10% to more than 60,000. The Balance Sheet remained debt-free, with cash and funds on deposit reaching $34.2 million.

VIZ Insurance Acquisition and Platform Expansion

A notable development during FY26 was the acquisition of a majority stake in VIZ Insurance, marking hipages Group's entry into financial services for trade professionals. The company views insurance as a natural adjacency, given every trade business requires coverage, and the acquisition expands both the addressable market and the ability to serve more of customers' needs. This acquisition exemplifies the company's strategy of leveraging its relationships with tens of thousands of trade businesses to offer additional products and services beyond the core marketplace.

Product Innovation and AI Integration

During FY26, hipages released several product enhancements including Smart Quotes, Estimates, Scheduling, Location Tracking, Booking Requests and Review Management tools. These products are designed to help trade businesses win more work, save time and operate more efficiently. The company has also been embedding artificial intelligence across its platform, with applications ranging from helping homeowners describe jobs more accurately to enabling more efficient quoting by tradespeople. Approximately 23% of subscription customers are now using Job management features, with nearly half of those classified as power users who engage regularly with the platform. Chair Inese Kingsmill also noted that cyber resilience, privacy and data protection remain priorities as the company scales its technology capabilities.

FY27 Outlook and Market Conditions

The FY27 outlook reflects a more cautious stance. While initial guidance called for revenue growth of 9% to 11%, an EBITDA margin of 25% to 27%, and free cash flow of $11 million to $13 million, the company has since revised expectations to the lower end of these ranges. Management cited a material deterioration in economic conditions and consumer confidence since August 2026. Although the majority of jobs on the hipages platform are non-discretionary, the company noted a slowdown in marketplace activity in some discretionary categories. To maintain marketplace balance, hipages is making additional tactical Marketing Investment to support the Demand side while tightly managing costs and cash.

Looking Ahead

hipages Group's FY26 results demonstrated continued progress in its evolution from a marketplace into a broader platform, with expanding margins and record cash generation. The acquisition of VIZ Insurance and growing adoption of job management tools point to a widening product ecosystem. However, the revised FY27 guidance underscores the sensitivity of marketplace activity to broader economic conditions, and the company's ability to navigate this environment while maintaining its growth trajectory will be a key area of focus in coming quarters.