Xref boosts recurring revenue and cuts costs as new HR platform gains traction

Xref Ltd ( (AU:XF1) ) has shared an update.

Xref reported continued momentum in the March quarter of FY26, with sales up 4% year-on-year to $4.5 million and EBITDA of $0.3 million as it shifts clients onto its new platform. Annual recurring revenue for the new platform surged 54% to $10.6 million, supported by 41 new clients, strong renewal and migration activity, and multi-year agreements and capacity extensions that emphasise longer-term, higher-value customer relationships.

Platform adoption accelerated, with active users up 72% year-on-year and sharp growth across pulse and exit surveys as well as core reference and background-check volumes. New integrations with Teamtailor and HiBob expand Xref’s reach to thousands of enterprise customers and recruiters, reinforcing its strategic push into embedded, API-led HR workflows.

Operationally, the company cut quarterly operating expenses by 28% despite one-off redundancy costs tied to a January restructure and the closure of its Lahore development extension, which is expected to reduce annual costs further. With a leaner cost base, improving margins, and $2 million in cash and $1.8 million in receivables at 31 March, Xref is positioning itself for more scalable, profitable growth while maintaining solid cash receipts from customers.

More about Xref Ltd

Xref Ltd is an ASX-listed provider of cloud-based human resources technology, specialising in reference checking, background verification and an expanding ‘hire-to-retire’ talent management platform. The company targets enterprise clients globally, with a growing presence in North America, Europe and the UK, and is increasingly focused on high-margin, API-driven integrations with major HR and recruitment systems.

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Technical Sentiment Signal: Sell

Current Market Cap: A$12.77M

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