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Hubify boosts earnings, deepens recurring revenue as it pivots to AI-first managed services

Story Highlights
  • Hubify lifted earnings and cash flow as cost cuts and a shift away from low-margin legacy customers increased the quality and recurrence of its revenue base.
  • The company expanded managed services, renewed ISO 27001, advanced its AI-first strategy and secured premium-priced capital, strengthening its growth and cyber security positioning.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Hubify boosts earnings, deepens recurring revenue as it pivots to AI-first managed services

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Hubify Ltd. ( (AU:HFY) ) has shared an announcement.

Hubify reported a sharp improvement in profitability for the half year to 31 December 2025, with EBITDA rising 84% to $0.33 million and net operating cash flow up 191% to $0.35 million, supported by an 8% reduction in total expenses. While total revenue fell 7% to $8.3 million, the company completed a deliberate exit from lower-margin legacy customers, pushing recurring revenue to 91% of the total and leaving a debt-free balance sheet with $3 million in cash and financial assets.

The group grew its managed services revenue 9% to $5.22 million, secured $0.9 million in new contracts including $0.7 million of annual recurring revenue, and renewed its ISO 27001 accreditation to bolster its cyber security credentials. Hubify also advanced an AI-first strategy built around advisory, solutions sourcing, and deployment, while completing a $250,000 strategic placement at a substantial premium to its market price, signalling investor support for its higher-margin, AI-led growth trajectory.

The most recent analyst rating on (AU:HFY) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Hubify Ltd. stock, see the AU:HFY Stock Forecast page.

More about Hubify Ltd.

Hubify Ltd., listed on the ASX under ticker HFY, is an Australian provider of AI-powered ICT managed services and cyber security solutions for business customers. The company focuses on high-quality, recurring managed services revenue, positioning itself as an end-to-end technology service provider with growing emphasis on AI advisory, deployment and integration for its clients.

Average Trading Volume: 128,481

Technical Sentiment Signal: Sell

Current Market Cap: A$4.6M

For a thorough assessment of HFY stock, go to TipRanks’ Stock Analysis page.

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