hipages Group Holdings Limited (HPG) Earnings Call Transcript & Summary

As we are using a slightly different format for today's session, I would like to briefly outline the process for asking questions. [Operator Instructions]. We will now begin the presentation.

Good morning, and thanks for joining us for the hipages Group Half Year Results for the 6 Months to the 31st of December 2025. I'm Roby Sharon-Zibser, CEO and Co-Founder. And joining me on the call is our Chief Finance and Operating Officer, Jaco Jonker. I'll start this morning's presentation on Slide 6 with a brief overview of the company before touching on the highlights from the first half and our ongoing sustainable growth profile. Then Jaco will talk through the financial performance in more detail before I provide some color on our strategy, execution, including some of the recent platform updates and AI implementations, outlook for '26 before opening up for Q&A. So as a reminder, hipages is ANZ's #1 platform connecting households and trusted trades and home improvement businesses. Our purpose is simple, is to transform the trade industry and build better lives for everyone. For the first half, we continue to execute on our strategic evolution from a pure marketplace to a software-led platform, while delivering double-digit top line growth, EBITDA margin expansion and significant uplift in free cash generation. This year, so far, we've achieved several strategic milestones, including completing the Australian pricing plan migration onto a single platform and providing access to all our job management features to all our subscribers. We launched the rebranded hipages for Business app, formerly called Tradiecore and hipages Perks, formerly known as hipages Toolbox. We also added a ton of new functionality and AI integrations. In New Zealand, we had our first full year of post-migration optimization with revenue and ARPU growth accelerating really strongly, both up over 40% year-over-year. Now on Slide 7, I think this is the slide I'm most proud of, 4 charts with one real excellent story from recurring revenue through to free cash flow generation, every line is moving up and to the right. These outcomes are our strategic choices we've made over several years around pricing, operating discipline and capital allocation. Jaco will unpack the half year numbers in more detail, but I just wanted to show and let you see the trajectory firsthand because it's the clearest proof that our model really works. I'll hand over to Jaco to talk you through our financial performance in detail.

Thanks, Roby. I'll start by looking at the financial highlights for the half on Slide 9. As Roby said, we are pleased to have seen profitable growth continue in Australia with New Zealand showing exceptional growth in its first year post migration. At the top line, MRR closed at $7.5 million, up 9% on the PCP, with total revenue up 11% to $44.9 million. The business maintained its strong gross profit margin and delivered a record 25% EBITDA margin, up 4 percentage points. Net profit after tax was $2.7 million, significantly ahead of the PCP. On our key drivers, subscription business are up slightly at 35,000 [indiscernible] and we saw strong ARPU growth continue, up 10% to $2,497. Our marketplace facilitated 1.4 million business household connections, down 4% versus PCP, in part reflecting subdued consumer confidence in Australia. Cash flow was a standout with operating cash flow up 37% to $12.9 million and free cash flow stepped up to $4.3 million, leading to closing cash and funds on deposit of $31.1 million with no debt on the balance sheet. Slide 10 shows how our record deals continue to drive MRR growth with all Australian customers now on new pricing plans and continuous matching engine enhancements driving healthy [ essential ] volumes. Similarly, in New Zealand, customers are joining and ascending at higher price points as we optimize the full subscription model post migration. Slide 11 illustrates how operating expenses continue to reduce as a percentage of revenue as we remain disciplined in our expense management. Marketing expenditure reduced by 3 percentage points versus PCP as H1 '25 included planned investment in new creative assets to support brand initiatives. Sales efficiency improved with double-digit revenue growth delivered of a stable cost base. Operations and admin costs saw a modest increase, largely from noncash ESOP expenses and planned increased subscription costs as we invest in better tooling. But importantly, this was more than offset by efficiencies in sales and marketing. Looking ahead, we expect OpEx as a percentage of revenue to continue trending down, driving further margin expansion and cash generation. Slide 12 provides an overview of the group's technology spend over time. In H1, our spend continued to reduce as a percentage of revenue, while delivering platform enhancements, including new self-service pathways for sign-up and upgrades, enhanced job management features and new books. We apply a disciplined capitalization approach based on detailed activity tracking, translating into roughly 70% of spend for H1 '26 being capitalized and amortized over 3 years. We will continue investing to support the delivery of our road map, and we expect technology spend as a percentage of revenue to reduce over the medium to long term. Now turning to our Australian operations on Slide 14. On the left-hand side, you can see business household connections softened from the first half and were down 5% on the PCP. This was driven by 2 main factors. First, we're seeing the impact of subdued consumer confidence reflected in a 2% dip in job volumes. We also experienced a short-term impact from mid-period updates to our matching engine, which was subsequently recalibrated and performance has returned to baseline levels. As you can see on the right-hand side, connection rates for households remained strong at 83% when considering normal H1, H2 seasonality, reflecting solid marketplace efficiency. Slide 15 shows our continued ARPU growth and resilience of our subscription customer base. Starting on the left, with all trade businesses now migrated to our new platform price plans, ARPU grew by 9%, driven by pricing optimization and planned extensions. On the right, subscriber numbers were broadly stable at 32,200. But importantly, the number of businesses served over the last 12 months reached 48,600 and represents a meaningful reactivation opportunity and the cross-sell of value-added services. MRR retention remained stable at 58%, and we see further upside as adoption of our job management tools deepen the value proposition for subscribers. And this is illustrated nicely on Slide 16, which shows how monthly active users of our job management features continue to grow, now approaching 15% of our total subscriber base. For February to date, we're seeing good traction and estimate approximately 5,000 MAUs by month end. On the right-hand side, you can see the early data that confirms our thesis that high job management platform usage drives better retention outcomes. We are highly encouraged by these results and expect the retention benefit to amplify as we roll out new functionality and continue driving adoption across the base. Moving on to Slide 17. Our brand ranks #1 for both homeowners and trade businesses across key metrics like awareness, preference, trust, ROI and business growth. On the homeowner side, total brand awareness for households sits at 66%, supported by our long-standing partnership with the block. On the trading business side, we've introduced new messaging, reinforcing our leadership position as the #1 platform for ROI on digital lead gen platforms and the #1 platform to grow your business. As you can see on Slide 18, this resulted in significant increases across a variety of metrics, including a 4 percentage point increase in total awareness to 72%. We also released a new interactive feature page to highlight the full functionality of hipages for business way beyond just lead generation. Turning to New Zealand on Slide 20. We applied our learnings from Australia and introduced a full subscription model to improve the quality of the customer base. As you can see on the left, ARPU growth has accelerated strongly, up more than 40% as we continue to optimize the subscription model. On the right, subscription business numbers grew 17% year-over-year, reflecting the quality of demand. Total businesses served declined as a natural lag effect of the migration to full subscription, but more importantly, and similar to the Australian operations, it presents an opportunity to introduce additional products to these businesses beyond the current lead gen subscriptions. And with that, I'll hand over to Roby to provide an update on our strategic evolution and our FY '26 targets. Thanks, Roby.

That's great, Jaco. Thank you. Let's zoom out to Strategy and Product now. So we've evolved from a directory and marketplace business into a single platform that now layers job management and a vast-growing range of services. We'll continue to expand our TAM by adding new services for our trading business customers, and we're helping them manage and grow their operations. We will also monetize household users in the short term through perks and offers and in the mid- to long term with everything related to managing and improving their home. Slide 23, we go through and talk about some of the expansion services. We'll be rolling out services to engage both sides of the marketplace, extending our value proposition by moving beyond lead-gen and job management in a fast and capital-light way, delivering it through partnerships and bolt-on acquisitions. Concrete examples of services we are considering include insurance brokerage and financing services, which are relevant for both the business and the household side of the platforms. And procurement services is just another vast area of opportunity for our trade business customers. This includes construction materials, of course, but also goods and services they require to manage their businesses. Slide 24 is just a quick reminder of our overall job management road map and shows our continued progress in H1. During the half, we completed a customer migration to new pricing plans. We released platform enhancements, which I'd like to show you over the next few slides. So let's go over to the next few slides, I'll talk you through them. So first of all, we have what we call SmartQuote. So Slide 25 shows new SmartQuote features, which helps trading quote on the go with AI-generated market rate guidance. This not only reduces admin time for our trade customers, but also delivers a more professional, accurate and a great experience for households, when you receive it on the other end. Okay. So we can go to Slide 26, which is looks at scheduling. Slide 26 shows an improved scheduling function, which now syncs with the user's personal calendar to remove duplication, avoids double booking and improves job pipeline management. And over on to Slide 27, we've introduced an estimates function. So this is something that addresses a common practice in the industry, which is to provide informal cost estimates as an admin light prelude to like formal quoting and invoicing. So this feature delivers a semi-automated estimate SMS, allowing businesses to respond to our household within seconds with professional pricing. It improves the conversion and time to hire with a simple personalization via the in-app templates that we provide to customers. On Slide 28, I'm going to go into quite a bit of detail now around how we're applying AI across the business. So AI is clearly a major focus for all companies at present and certainly for technology and software companies. Slide 28 outlines how we think about AI at hipages. Fundamentally, it's an opportunity across 3 components of our business. So we frame AI across search, product and operations. And we're using it to acquire and convert more efficiently to deliver a more seamless experience and to improve the internal productivity and quality. Okay. So why don't we start off with on Slide 29, AI and search. So AI is significantly changing the search behavior and the way in which people find us. LLMs and AI have disrupted and are impacting what we would call traditional SEO channels, and we've had to adapt to ensure we make it easy as possible for people to find us. We've begun by optimizing our website to ensure our content can be found by our LLMs, for example, via Google's AI overview and AI mode, ChatGPT and Perplexity. We've also begun using tools that allow us to track our visibility across new channels to the extent that it's possible given how fast this area is moving. We're also leveraging AI-enhanced opportunities to evolve our approach to same. On Slide 30, AI and search, I just want to go through in more detail how we see things. So LLM visibility measures is how -- it measures how likely a brand or product is to be mentioned or recommended by an AI assistant in response to relevant user questions. Hipages now optimizes for traditional SEO as well as AI and LLM visibility in Google AI mode, Gemini, ChatGPT and Perplexity. Our optimization efforts have established and maintained a visible lead versus peers across tracked LLM channels. On Slide 31, we've built a custom hipages ChatGPT app, which is now live and is one of the first to be approved in the ChatGPT ecosystem as apps in Australia. The app allows ChatGPT users to search the hipages directory and links directly through to our directory profiles and job posting functionality. It's accessible via the desktop and mobile. On Slide 32, I'll just talk a little bit about how our products is interacting and using AI. So we've also created the hipages AI Assistant. So this is the household's always-on home improvement companion. It helps them research, plan and then seamlessly hire the right person when they're ready. On Slide 33, in H2, we will continue to introduce exciting new AI-enabled features in job management, including location tracking, route optimization, follow-up prompts and voice in smart quoting. On Slide 34, I just want to go into a bit of detail how we're using AI in our operations. As I mentioned, we think about AI across search, product and operation. When it comes to the operations side of things, we're embedding the new AI workflows into our tools across sales, customer service and engineering. From call summaries to next best action suggestions to automated QA, prototyping, bug triaging and code review, all of this is lifting the velocity and quality of everything we do. We're keeping a close eye on AI developments, and we'll be monitoring the winning user cases as they emerge to continuously improve our operations over time. We expect this will enable us to materially enhance our efficiency and deliver further margin benefits for hipages. Okay. So why don't we go to Slide 36. Finally, it's just really the outlook for FY '26. So we're targeting total revenue of $90 million to $91 million for the full year. reflecting current macroeconomic conditions that continue to impact marketplace activity. With the benefits of the group's operating efficient model and operating leverage we have demonstrated, we're on target for EBITDA margins of 24% to 26% and free cash flow of $8 million to $10 million, a significant increase on last year. So before I open up to questions, I'd like to thank all of the hipages team for their huge efforts again this year. They are critical to our ongoing success. Thanks also to all our shareholders for your ongoing support. Operator, please open the line for questions.

Thanks, Roby. Our first question who'd like to speak is from Richard Harrisberg from Canaccord.

Congrats on a really great result. I just had a quick question around the guidance statement and revenue. Obviously, that's a little bit lower than you previously were guiding for granted, I'm assuming that's maybe the lower connection volume. Maybe you can just unpack a little bit more detail around that?

Great. Thanks for the question, Richard. Yes, I sort of expected that one. So what we've done is we're reflecting for the second half effectively what we're sensing in the macroeconomic environment. We definitely can see some softness there. There are some specific markets that we're seeing, particularly Victoria, where there is like higher softness, and we can clearly attribute that to economic activity. We also had a softer Q2. We made some amendments to the matching algorithm, which subsequently reverted back to that. But unfortunately, that's had an impact on some of that MRR for the -- on a go-forward basis. But we are seeing strong return to normal activity and growth in January and February. So we should see that start to accelerate as we get into the back end of the second half, but we just want to reflect that in terms of that guidance. I think it's important to call out that because of the operating leverage of the business, we've got a very, very healthy EBITDA margin and good movement there and very, very strong cash flow generation for the business.

Yes. No, that's really great and great to see you maintain the free cash flow guidance as well despite that. Maybe I'll jus split a little bit to touch on the marketing spend. Do you expect to see sort of similar levels in the second half? And I was also just curious on the split of marketing that targeting more sort of consumers versus targeting trades...

I'll hand that over to Jaco to answer on the cost side for marketing.

Yes, sure. Richard. So on the marketing side, we expect cost to be fairly consistent from an H1, H2 point of view. We don't see any particular spikes that we are expecting to. When you're asking about the split, we typically spend approximately 60% of that sort of spend we attribute to the consumer side, which is the home owners [indiscernible] and then the balance to come home and trade the acquisition side.

Maybe I'll just ask one more. You had a slide mentioning each of household monetization strategies. I think that's a really exciting development. Actually, it's very early days just to unpack what is your thinking around that and your plans going forward?

So just a little bit hard to hear, but just going to play back the question from the way I heard it or understood it. You said it was exciting to see that we're starting to talk more about multiple products for the trading and the household and moving into that part of the ecosystem. And wanted a bit of color around how we're thinking about that opportunity. I just think that was the question, I just need confirmation. Yes. Okay, heads nodding that was the question. So it's a bit muffled the sound. So I'll answer that now. So essentially, what we've been working on is building out the platform on the trading side, but we're going to start evolving and building the platform for the household. We started to introduce and we did the renaming of Perks because Perks for the trades, there is also relevant Perks for the household. And so we will be introducing new products to the household over time. Currently, we are building out some back-end technology. So the customer won't necessarily see any major changes, but it will allow us to make a much more seamless experience for the household around preference centers and CDP software to allow us to create a very personalized experience for the household. The way we're thinking about it is effectively giving the household the ability to have effectively a control panel or a log book of how to manage their property, give them inspiration on the pre-hire and the hiring phase, managing their property and everything in between. So effectively, it will be the repository on the property or the household, all the properties for the household. And we see lots of opportunities for that down the track, whether it's insurance products or lending products. But just to be clear, that's going to take a bit of time to build out, but we're starting to move closer into that strategy, something I've been talking a lot about over the last few years, but that's coming to life.

I might just ask one more, can you give me a little bit better, but a really great result on New Zealand, really strong revenue growth there and EBITDA more than doubling despite a very weak economy. Maybe you could just touch on your expected sort of future performance there...

Yes. So obviously, New Zealand was a really outstanding result. I mean it is still a small part of the overall group's business. But what we've demonstrated internationally, which I find very exciting is that we have found the perfect model. The subscription model clearly works. We've captured a lot more value that we've created in that market for -- we've created a lot of value over the years. We haven't been as effective in capturing the value. And the subscription model does that really well. And what that now allows us to do is to start to continue to optimize on the yield in the category. So I expect probably not as much accelerated growth is what we've seen. The same thing happened in hipages in Australia, but very, very healthy growth is still anticipated into FY '27 and beyond. We still leave an incredible amount of value on the table that we're not capturing in that engine. The strategy for New Zealand is going to be identical to Australia. We'll be introducing that platform solution. So job management, we plan to roll out probably by the end of FY '27. That will impact subscription pricing and packaging and inclusions. The benefit of having the know-how in Australia is we know how to do it, and we can do it in a much more accelerated way in New Zealand. So that gives us a lot of optimism around the continued accelerated growth in the New Zealand market despite, yes, a softer economy in New Zealand, but showing signs of recovery.

Thanks, Richard. We've also got some questions from Olivier Coulon from Evident Partners.

Sorry to dig in more on the revenue guidance. Just wanted to get a sense how much is a weaker macro? How much is, I suppose, the self-inflicted injury around the algorithm? And then I guess you learned a lot more in my experience from your failures than you do from your successes. So what have you learned on the algorithm side that may prevent a future kind of issue like this arising?

So probably -- I mean, Jaco will have a much more specific number on the split. I'd probably put it at 50-50 if we just keep it high level for the conversation. In terms of macro, obviously, investing further in our marketing and the product is going to be key to address that and finding new channels that we have historically not sort of managed to optimize. But since having some new marketing people in the business have identified that there are opportunities there that we can definitely take advantage of and get growth there. On the learning side of things, yes, we obviously are experimenting and trying lots of different things to optimize the funnels that drive our growth. And over the course of the year, I think, while it's quite a technical thing, we ask a lot of high-quality questions from households when they post jobs into the hipages engine. So if anyone that's listening on the call has done a job, you'd know we typically ask about half a dozen to a dozen depending on the type of job questions that you need -- we need to know to get the algorithm to optimize. And one of the things that we did was in the effort to drive jobs growth is we reduced the description length on one of the -- on the job hosting flow and thought that, that would just make job hosting easier for the homeowner. But that description length is absolutely critical for our algorithm to actually optimize the pricing and the way it distributes the algorithm. And I think what we learned is that we've really spent the last 3 to 4 years optimizing that funnel. We probably maxed out the learnings on that, and we need to really focus more on making it an AI sort of mode product only, where voice works, where an AI can enhance the job posting flow. So that tinkering sort of did have an impact in Q2 to be transparent. We reverted back to the old flow and allow our customers to add the larger descriptions. And we saw a very quick recovery on that connection engine, which was strong. We obviously, we learned a lot in that journey. And I would say that the business is heading into much stronger growth over the end of -- as we get to the end of H2 and rolling into FY '27 because of that. But yes, I appreciate the question, and we always will be transparent about what we've learned, and that was a really good learning. The back of that, just to remind everyone, we took measures to ensure that we generated the margin and the free cash for the business, which I believe is the best we've ever done, really, really strong there, and we'll continue to deliver on those metrics going forward.

That's great. Can I just dig in? So you expect stronger growth in, I suppose, your exit rate in H2. So do we expect an uplift in the MRR growth rate from what is, I guess, a low point at the first half '26?

Jaco, if you want to give some color on that.

Sure. So we typically, what we find is that when you look at H1, H2, there's typical seasonality in our business. So for us, in H2 is generally stronger because you don't have these extended holiday period over December and that early in January period. So yes, we believe that -- and as Roby said earlier, we have now got our matching engine to fire on all cylinders again. We are seeing the activity coming back. That naturally helps stimulate our retention volumes, particularly when we get those connections, we get the credit utilization going. So -- and also with a typically more bullish H2 compared to H1, you should start seeing that MRR actually coming back. We will see the acceleration on H1. So yes, we should be looking at accelerated growth in H2. So this will set us up for really good momentum, especially as we get into FY '27. Unfortunately, by missing the sort of the Q2 MRR that you set for yourself, that has a massive flow-on effect into H2. But now that we're sort of getting back, we should see that momentum coming back in H1 FY '27.

If I just jump on and add a little bit more in terms of what we're executing on. So we have some really exciting new products that we'll be rolling into our products into FY '27, and that's coming in due course, which will also be an accelerant in MRR in FY '27. The other thing I'd like to probably add, and I think what is often missed about how our business operates is we create an incredible amount of value for our trading business customers. We also create a lot of value for the household, which we have yet to monetize as one of the earlier questions alluded to. But for the trades where we have -- that's our key monetization channel. The value that we charge for our services over the value that's created is very, very low single-digit percentage points. That's very unusual for a marketplace to be taking such a low rate for the value that's created. And I think what we'll be looking at is trying to demonstrate more of that value to the customers over the next couple of years, but certainly moving very strongly into FY '27. And once we've demonstrated that value to the trading business customers, it gives us an opportunity to extract more yield and ultimately more MRR growth. So those are really exciting opportunities that I see in the business.

Yes. No, I appreciate that. You've mentioned in the past, especially in recent past that you're looking at kind of adjacent M&A. Is that still on the cards? Or have you kind of pushed that to the side, while you kind of reinvigorate kind of organic growth?

So we've made very detailed plans for the core business and the organic growth. We see, as I just talked about, a lot of opportunity there. But on the inorganic side, no, we haven't pushed it aside. So as you can see, we're generating very, very healthy cash and cash margins. We've got a very healthy cash balance on our balance sheet. We need to deploy that capital, and we are actively in market looking for inorganic opportunities. We are working on those things. Anything that supports our strategy or that will accelerate our growth into the future are things that we are in active discussions with various different parties at the moment.

We've also got some -- Roby, now got some written questions, some during the webinar and some that were pre-webinar. The first is -- you've introduced the new concept of service businesses. What does that mean?

Fantastic. I'm very thankful for that question. That's good. So at the full year results, we had a slide at the back of the deck, which didn't get a lot of attention in the last discussion. And so we've elevated into our communications. And I think that serves 2 parts. One, as a marketplace business that's known for lead generation and advertising services for our customer, what people don't fully appreciate and what this metric now allows us to talk about is that we have a very high reactivation rate with customers. We often get told, your churn is high, but our reactivation is very high. And talking about service businesses as a platform today gives us the ability to demonstrate the high reactivation rate. So what often happens is customers come into our platform, they come to us for leads. They buy our subscription -- they get their work from their customers, they're generated from our leads. This is the trade businesses that is, and then they leave. And obviously, we have a long-term strategy where we want to become a platform, a system of record, that's job management solution, hipages for business. And we're making excellent progress in that. And we've got a presentation in there showing about the activity of our power users and the retention rate, which is now formally being validated through some statistical analysis. So it's no longer a correlation. It's a causation, which is fantastic. So the thesis has been proven, but we wanted to demonstrate that we're high reactivation rate with that metric. Now there is a secondary and more strategic reason why we're talking about service businesses. We will be offering through the platform other services such as products and solutions that will help trade businesses manage and run their businesses. That's been in our mission and our purpose for a long time. And we're now starting to see some activity there, and there will be an acceleration of activity in businesses that may be buying insurance solutions or web design services or [ Tradeware ], and they are going to be very transactional in nature. And what it does is it talks about our TAM expansion. So up until now, our [ TAM ], which has been for advertising services is about 175,000 businesses in Australia. But we know the TAM has over 300,000 businesses. And being able to be a platform that offers these other services to our customers, we now access the full TAM of 300,000 businesses. And so talking about service businesses is becoming more and more important, and we feel that, that needs to take an elevated look through into the business as a leading measure over the coming years. So we've started to talk a lot more about it.

Thanks, Roby. Another question. How do you think about buy versus build versus partner for adjacent services?

So there's obviously some services that require a high setup cost. For example, if you're going into market and want to offer a lending solution, you've got regulatory compliance, AFSLs. There's a whole bunch of stuff that you need to do. So we wouldn't probably go in and build something like that from scratch. We would go in and either do a partnership or a joint venture with a third-party provider that already has a relationship, preferably knowing how to work with trades and we would look at something like that from a partnership point of view. Anything specific that relates to our core capabilities, for example, a marketing service or marketing solutions or anything to do with our directory or marketplace solution, we would probably have to take ownership of that. We've created unique algorithms, unique ways of working. So that would fall into what we would call our core business, and we would do a build for that, and we know how to do that really well. We have already signed a huge number of partners in the Perks solution. We're going to continue to grow those partners, whether it's design, services, TradeWare, insurance products. So we're partnering with those. And for some of those, we may actually buy, and we'll be looking at those as part of our inorganic opportunities.

Thanks, Roby. Last question received during the webinar, and then we'll turn to some questions received before the webinar. This last question is, you mentioned a plan to monetize households. Does that mean charging a subscription for consumers to post jobs?

Okay. So I sort of touched on that on the earlier question that came through. So at this stage, I can't see a fee to charge for households to post jobs or consumers to post jobs on hipages. It's always been free for households to post a job. Historically, other businesses, it's very -- as I've seen in other businesses when something has been free to put a fee on that service is difficult to do, although some marketplaces do it, and it works. My view on that is provide better tools, better application that the household sees value. So for example, anything that helps them get better knowledge on the pre-hire phase, maybe it's design or it's ideation or its content or if it's a digital record for the property, so that household can keep an accurate sort of log book of everything that's been done on the property down to the appliances or the works that have been carried out, is there value there? And I think what we need to go on a journey as we build up the capability through preference centers and CDPs is to see what value households put to those things and determine, if there's some sort of subscription or monetization opportunity. I think there's a no-brainer on some of the perks, where we'll offer really, really great quality products and services like our energy solution, and there will be an opportunity to monetize through some sort of commission or affiliate fees. That's a no-brainer. But is there a more embedded, more creative solution to come? Absolutely. And that's probably a big focus for us over the next year or 2.

Thanks, Roby. We received a number of questions from investors ahead of the webinar. One key focus area has been AI. I think Roby and Jaco have addressed that substantively in the presentation. The other area of interest relates to capital management, particularly the potential for a share buyback. Roby, could you please share your and the Board's perspective on capital management?

Absolutely. So most of the market can now see, hipages is sitting over -- well over $30 million in cash -- on cash and cash equivalents. I think I get corrected for that, if I didn't say that. And obviously generating meaningful cash each month. We're expecting a balance sheet closing balance if you use the numbers there, somewhere over $34 million, $35 million plus in cash. So that's just me estimating. I'm sure probably somewhere in that zone, I would say. But the point being is that we have a healthy balance sheet. And I think it's a totally fair question to ask what is the business going to do with shareholder capital. So the Board takes that really, really seriously. It's one of the most regularly discussed topics in our Board meetings. We cover options such as a share buyback regularly. I can tell -- I can say now we have not approved to do any sort of share buyback of any kind at this stage, but it is an ongoing discussion at the Board meeting to consider our options, and we will be monitoring how things progress over time and come back to the market with a decision on that at some future date. We are really just focused on generating the growth from our core business, so organic growth and ensuring that we have sufficient capital to deliver on inorganic opportunities as they arise. So that's probably the main focus of what we're doing with our capital at the moment is to focus on core growth support and the additional cash generated is to support any inorganic opportunities as they develop.

Thanks, Roby and Jaco. I don't have any more actually. There's one question, one further question that's come through on the chat. And that is, are you actively pursuing M&A?

So I think I've made that clear a few times, we absolutely are actively pursuing M&A opportunities.

Thank you. I think that's all the questions that we've had from our investors.

Awesome. That's great. So on that note, I'll just do a quick wrap-up. Thank you, everyone, for your time and support today. So we look forward to speaking to a variety of different investors and sell-side parties over the next coming days. Happy to answer questions that might come about. Really, really excited about our products, partnerships and developments. The growth has really been strong. The cash generation and the profit, the EBITDA is very, very healthy. And we're going to continue our growth momentum going into the end of H2 and into FY '27. Really, really appreciate again everyone's time, and thank you to the advisers and the team and the Board. I appreciate your time. Thank you.