Xref Ltd (XF1) AI Stock Analysis

• Market Cap: AU$28.61M
• Dividend Yield: N/A
• Average Volume (3M): 130.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 0.40%
• EPS Growth: 66.36%
• Country: AU
• Employees: 99
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 220,089,770
• 10 Day Avg. Volume: 256,954
• 30 Day Avg. Volume: 130,925
• PEG Ratio: -0.18
• Price to Book (P/B): -3.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Xref Ltd's overall stock score is primarily impacted by its weak financial performance, with significant challenges in profitability, balance sheet stability, and cash flow generation. Technical analysis suggests some short-term upward momentum, but the stock remains in a bearish trend overall. The valuation is unattractive due to the negative P/E ratio and lack of dividends, which further dampens investor appeal.

Xref Ltd Business Overview & Revenue Model

Company Description

Xref Ltd (XF1) is a technology company that operates in the human resources sector, specializing in online reference checking and verification services. The company's core product is its cloud-based platform that automates the process of collecting and verifying candidate references, offering solutions that improve the hiring process for organizations across various industries.

How the Company Makes Money

Xref Ltd generates revenue primarily through subscription-based services offered on its platform. The company charges organizations a fee to access its automated reference checking solutions, which streamline the hiring process by reducing the time and effort required to collect and verify candidate references. Xref's revenue model is predominantly based on recurring subscriptions, with clients typically entering into contracts for a specified term, thereby providing a consistent revenue stream. The company may also earn revenue through partnerships with other HR technology providers, integrating its services into broader recruitment and talent management solutions. Additionally, Xref may offer premium features or services that contribute to its earnings, although specific details on such offerings are not provided.

Xref Ltd Financial Statement Overview

Summary

Xref Ltd faces significant financial challenges across income, balance sheet, and cash flow metrics. Persistent losses, declining revenues, negative equity, and cash flow difficulties raise concerns about the company's financial health and sustainability.

Income Statement

The company has struggled with profitability, as evidenced by negative EBIT and net income margins over the past few years. Revenue has decreased by approximately 2.6% from the previous year, indicating challenges in maintaining revenue growth. The gross profit margin remains strong at around 87.3%, but the negative EBITDA margin highlights operational inefficiencies.

Balance Sheet

Xref Ltd exhibits a weak balance sheet with negative stockholders' equity, indicating insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, and the company's equity ratio is also negative. These factors suggest significant financial instability and leverage issues.

Cash Flow

The company has negative free cash flow, indicating a lack of cash generation from operations. Operating cash flow has declined sharply, and the free cash flow to net income ratio is negative, highlighting the company's inability to generate cash profits. There is a concerning decline in free cash flow over the periods studied.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
20.80M	19.86M	20.40M	18.59M	14.45M	8.03M
	Gross Profit
18.60M	17.33M	17.15M	14.92M	3.02M	-4.58M
	EBIT
-4.45M	-5.55M	-2.72M	1.31M	-142.48K	-10.65M
	EBITDA
-2.69M	-1.76M	-1.36M	1.57M	3.68K	-9.89M
	Net Income Common Stockholders
-2.03M	-5.68M	-3.36M	153.08K	78.08K	-10.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.33M	4.59M	6.84M	11.67M	8.13M	2.87M
	Total Assets
20.46M	20.36M	22.90M	20.17M	15.00M	8.47M
	Total Debt
9.10M	8.35M	5.33M	4.96M	4.69M	475.51K
	Net Debt
5.76M	3.76M	-1.50M	-6.71M	-3.45M	-2.39M
	Total Liabilities
26.86M	26.21M	23.10M	18.70M	16.01M	10.88M
	Stockholders Equity
-6.40M	-5.85M	-202.52K	1.47M	-1.01M	-2.40M
Cash Flow		Free Cash Flow
750.97K	-3.80M	-2.17M	-833.27K	1.19M	-7.45M
	Operating Cash Flow
787.16K	-678.80K	454.40K	627.48K	2.32M	-7.38M
	Investing Cash Flow
-2.42M	-3.12M	-4.34M	-1.46M	-1.13M	-648.62K
	Financing Cash Flow
1.34M	1.56M	-952.81K	380.71K	4.07M	2.86M

Xref Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XF1, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:XF1.

Xref Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUL	68 Neutral	AU$640.60M	97.97	11.59%	―	9.76%	-28.92%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
RZI	50 Neutral	€73.72M	―	-0.11%	―	12.91%	73.27%
FLN	50 Neutral	$81.16M	―	-3.57%	―	-4.37%	-550.00%
AD1	46 Neutral	AU$7.76M	―	-245.01%	―	-17.50%	66.33%
SP3	44 Neutral	AU$4.62M	―	-244.13%	―	7.28%	31.75%
XF1	39 Underperform	AU$28.61M	―		―	0.40%	66.36%

Xref Ltd Corporate Events

Xref Limited Completes Share Purchase Plan, Strengthens Financial Position

Xref Limited has completed a Share Purchase Plan (SPP) allowing eligible shareholders to purchase new shares, resulting in the issuance of 173,078 shares at $0.13 each, raising $22,500. This move is part of the company’s efforts to strengthen its financial position and enhance shareholder value, complying with relevant regulatory requirements.

Xref Limited Concludes Share Purchase Plan with Modest Participation

Xref Limited announced the results of its Share Purchase Plan (SPP), which concluded on April 22, 2025. The plan allowed eligible shareholders to purchase up to $30,000 worth of new shares at $0.13 each. The company received applications from four shareholders for a total of 173,078 shares, amounting to $22,500. These shares will be issued on April 30, 2025, and will rank equally with existing shares. This SPP reflects a modest shareholder engagement, potentially impacting the company’s capital raising efforts and market positioning.

Xref Limited Launches Share Purchase Plan to Boost Capital

Xref Limited has announced a Share Purchase Plan (SPP) allowing eligible shareholders to purchase up to $30,000 worth of new shares at a price of $0.13 per share, representing a discount to recent trading prices. The SPP, capped at $1 million, is part of a broader capital raising strategy, including a recent $3.63 million placement to EPI Capital Pty Ltd. The funds raised will be used to reduce net debt and restructure operations for improved efficiency.

Xref Limited Announces Share Purchase Plan for Eligible Shareholders

Xref Limited has announced a Share Purchase Plan (SPP) allowing eligible shareholders to purchase up to $30,000 worth of new fully paid ordinary shares. The SPP, set to open on April 4, 2025, is in compliance with the ASIC Corporations Instrument 2019/547, ensuring no disclosure to investors under Part 6D.2 of the Corporations Act is required. This move is expected to strengthen Xref’s financial position and potentially enhance its market presence, offering stakeholders an opportunity to increase their investment in the company.

Xref Limited Appoints New Director with Significant Shareholdings

Xref Limited has announced the appointment of Jake Phillpot as a new director, effective March 21, 2025. Phillpot holds a significant interest in the company, with direct ownership of 582,342 fully paid ordinary shares and indirect interests through Globex Nuclear Pty Ltd and EPI Capital Pty Ltd, totaling over 29 million shares. This appointment and the associated shareholdings could influence the company’s strategic direction and stakeholder interests.

Tanda Parties Acquire Substantial Stake in Xref Limited

Xref Limited has announced that a group of investors, collectively known as the Tanda Parties, have become substantial holders in the company, holding a 14.48% voting power through their acquisition of 31,840,950 shares. This development signifies a significant investment in Xref Limited, potentially impacting its market positioning and stakeholder interests as the Tanda Parties now hold a considerable influence over the company’s voting decisions.

Beauvais Capital Increases Stake in Xref Ltd

Beauvais Capital Pty Ltd, acting as trustee for The Reginald Hector Trust, has increased its voting power in Xref Ltd from 7.84% to 9.80% through a market purchase of shares. This change signifies a growing interest and influence in Xref Ltd by Beauvais Capital, potentially impacting the company’s strategic decisions and shareholder dynamics.

Beauvais Capital Increases Stake in Xref Ltd

Xref Ltd, a company in the technology sector, has seen a change in the substantial holding of its shares. Beauvais Capital Pty Ltd, acting as trustee for The Reginald Hector Trust, increased its voting power in Xref Ltd from 5.20% to 6.80% through market purchases, now holding 13,061,276 ordinary shares. This change in shareholding may indicate increased confidence or strategic interest in Xref Ltd by Beauvais Capital, potentially impacting the company’s market position and stakeholder relations.

Xref Limited Reports Financial Turnaround; SEEK Acquisition Falls Through

Xref Limited reported a significant improvement in its financial performance for the half-year ending December 2024, with a 9% increase in revenue and a remarkable 89% reduction in losses compared to the previous period. Despite these positive results, the proposed acquisition by SEEK was terminated as it failed to reach the required shareholder approval threshold, impacting future strategic directions. The company continues to prioritize SaaS growth, cost efficiencies, and enhancing its product offerings to maximize recurring revenue and build a path to profitability.