Highlights

  • Xref reported unaudited Q1 FY27 Revenue of A$4.7 million and positive EBITDA of A$0.6 million.
  • Revenue from the new platform reached A$2.7 million in the quarter, up 48% on Q1 FY26.
  • A Commonwealth Bank Facility replaced the previous lender, with the drawn amount reduced to A$5.6 million.
  • Xref.me reached 80,000 candidate profiles in October 2026, around five months after its May launch.

A leaner cost base and cheaper Debt carried Xref (ASX:XF1) into FY27 with a profitable start. In its Business update for the first quarter of FY27, released on 29 October 2026, the human resources technology company reported unaudited revenue of A$4.7 million and positive EBITDA of A$0.6 million.

Revenue from its new platform reached A$2.7 million, up 48% on the same quarter a year earlier, while revenue per employee rose to A$355,000 following a restructure of the cost base. The company also confirmed receipt in October of a A$2.0 million Research and Development tax incentive relating to FY26.

Refinancing Cuts the Interest Bill

In July 2026, Xref agreed a new senior debt package with the Commonwealth Bank of Australia, which took effect on 28 August 2026 and repaid the balance owed to previous lender Element SaaS Finance. The package comprises a term facility of A$6.3 million maturing in August 2029, with no principal repayments until August 2028, plus a A$2.0 million Working Capital overdraft. After negotiating a payout with the previous lender, the drawn amount was reduced to A$5.6 million.

Management expects annual finance outflows on the term facility to fall from A$2.7 million in FY26 to about A$0.5 million, interest only, through FY27. The company said the refinancing also allowed a larger Marketing budget aimed at revenue growth.

FY26 Delivered Higher Earnings on Lower Revenue

For FY26 to 30 June 2026, revenue fell 10.2% to A$19.1 million, but underlying EBITDA rose 76% to A$4.7 million and the net loss narrowed 77.9% to A$432,066. Wages and salaries declined 27.0%, while restructuring costs reached A$0.7 million. Group annual Recurring Revenue stood at A$15.7 million at year end, with A$11.2 million generated by the new platform. Cash was A$2.3 million at 30 June 2026. The directors noted that the refinancing provides additional Liquidity through an undrawn overdraft facility.

Platform Usage and Product Launches Shape the Next Phase

Active users grew 12% in the September quarter, and talent profiles created on the new platform rose 48% year on year to 48,521. Trust Marketplace checks increased 223% compared with Q1 FY26, criminal checks joined the catalogue, and the public API was relaunched to cover the full suite. Integration partners such as Workday, Greenhouse and Bullhorn accounted for 30% of reference requests.

New business totalled A$300,000 across 52 clients, including Macquarie University, Akamai Technologies and Aon. In October, Xref launched 360Me, extending Xref.me to employees for 360-degree feedback, and added a native link that lets employers move verified profiles into candidate pools. Further checks are scheduled for the Trust Marketplace. Katherine Landon was appointed Chief Financial Officer in September, and the Annual General Meeting is set for 27 November 2026. The company did not issue numerical guidance for FY27.

Shares were unchanged at A$0.038 on 2 November 2026, giving a Market Capitalisation of about A$8.36 million, and were down 76.25% over 12 months.