Xref Ltd (XF1) AI Stock Analysis

• Market Cap: AU$35.21M
• Dividend Yield: N/A
• Average Volume (3M): 80.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 7.32%
• EPS Growth: 67.11%
• Country: AU
• Employees: 99
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 220,089,770
• 10 Day Avg. Volume: 60,218
• 30 Day Avg. Volume: 80,687
• PEG Ratio: 0.23
• Price to Book (P/B): -6.93
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 22.53
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Xref Ltd's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and high leverage. Technical analysis shows neutral indicators, providing no clear direction. Valuation is weak due to negative earnings and lack of dividends, further weighing down the score.

Xref Ltd Business Overview & Revenue Model

Company Description

Xref Limited engages in the development of human resources technology that automates the candidate reference process for employers in Australia, Canada, the United Kingdom, New Zealand, and the United States. It operates in two segments, Candidate Referencing and ID Verification. The company offers Xref, an automated reference checking tool for reference check templates, talent sourcing, background checking and identity verification, analytics and insights, and security and compliance solutions. It serves not-for-profit, health and aged care, hospitality, construction, and retail industries, as well as government and public sectors. The company is headquartered in Sydney, Australia.

How the Company Makes Money

Xref generates revenue through a subscription-based model, where clients pay for access to its reference checking platform. The company offers various pricing tiers based on the volume of references processed and additional features utilized by its clients. Key revenue streams include direct sales to businesses seeking to improve their recruitment processes, as well as partnerships with recruitment agencies and HR service providers that integrate Xref's technology into their offerings. Furthermore, Xref may also benefit from strategic alliances with other HR technology firms, enhancing its service portfolio and expanding its customer base.

Xref Ltd Financial Statement Overview

Summary

Xref Ltd faces challenges in achieving profitability, with negative net income and EBIT margins. Despite a strong gross profit margin, high leverage and negative equity raise concerns about financial stability. Cash flow improvements are a positive sign, but operational inefficiencies and financial structure need addressing.

Income Statement

Xref Ltd shows a mixed performance in its income statement. The company has achieved a high gross profit margin, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing losses. Revenue growth is modest, but the negative EBIT and EBITDA margins highlight operational challenges.

Balance Sheet

The balance sheet reveals significant financial instability, with negative stockholders' equity and a high debt-to-equity ratio. This indicates potential solvency issues. Return on equity is positive but misleading due to negative equity, suggesting caution in interpreting profitability metrics.

Cash Flow

Cash flow analysis shows improvement, with positive operating cash flow and significant free cash flow growth. However, the operating cash flow to net income ratio is low, indicating limited cash generation relative to reported losses. The free cash flow to net income ratio is strong, suggesting efficient cash management despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.31M	21.31M	19.86M	20.40M	18.59M	14.45M
Gross Profit	19.03M	19.03M	17.33M	17.15M	14.92M	3.02M
EBITDA	-1.87M	-1.87M	-1.76M	-1.36M	1.57M	-272.89K
Net Income	-1.95M	-1.95M	-5.68M	-3.36M	729.58K	78.08K
Balance Sheet
Total Assets	19.16M	19.16M	20.36M	22.90M	20.17M	15.00M
Cash, Cash Equivalents and Short-Term Investments	5.29M	5.29M	4.59M	6.84M	11.67M	8.13M
Total Debt	7.83M	7.83M	8.35M	5.33M	4.96M	4.69M
Total Liabilities	23.55M	23.55M	26.21M	23.10M	18.70M	16.01M
Stockholders Equity	-4.39M	-4.39M	-5.85M	-202.52K	1.47M	-1.01M
Cash Flow
Free Cash Flow	1.35M	1.35M	-3.80M	-2.17M	-833.27K	1.19M
Operating Cash Flow	1.36M	1.36M	-678.80K	454.40K	627.48K	2.32M
Investing Cash Flow	-1.91M	-1.91M	-3.12M	-4.34M	-1.46M	-1.13M
Financing Cash Flow	1.92M	1.24M	1.56M	-952.81K	380.71K	4.07M

Xref Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:XF1.

Xref Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMX	48 Neutral	AU$26.60M	-4.05	-31.01%	―	-3.43%	-40.65%
XF1	44 Neutral	AU$35.21M	-16.00	―	―	7.32%	67.11%
8CO	41 Neutral	AU$7.40M	-9.43	-9999.00%	―	-10.32%	69.30%
FLX	41 Neutral	AU$58.21M	-8.19	―	―	21.82%	6.83%
DUB	41 Neutral	AU$47.35M	-1.07	-212.09%	―	9.14%	65.30%
PRO	39 Underperform	AU$13.64M	―	-133.07%	―	-4.90%	-52.78%

Xref Ltd Corporate Events

Xref Limited Announces Virtual AGM for 2025

Xref Limited has announced that its 2025 Annual General Meeting will be conducted virtually via a live webinar on November 24, 2025. Shareholders will have the opportunity to vote online during the meeting, with instructions provided by the company’s share registrar, Automic. This virtual format aims to facilitate shareholder participation and streamline the voting process, reflecting a broader industry trend towards digital engagement in corporate governance.

Xref Limited Strengthens Governance Framework with ASX Principles Adoption

Xref Limited’s Board of Directors has adopted the ASX Corporate Governance Principles and Recommendations to enhance its corporate governance framework. The company aims to maintain full compliance with these principles, reflecting its commitment to robust governance as it grows. The Board has outlined its roles and responsibilities, emphasizing strategic planning, financial oversight, and internal controls, while delegating operational duties to executive management. This governance approach is expected to strengthen Xref’s industry positioning and reassure stakeholders of its financial and operational integrity.

Xref Limited to Host Investor Webinar on FY2025 Results

Xref Limited announced an upcoming investor webinar scheduled for September 10, 2025, where CEO Lee-Martin Seymour and other executives will discuss the company’s FY2025 results and strategic initiatives. This event is significant for stakeholders as it provides insights into the company’s performance and future plans, potentially impacting its market positioning and investor relations.

Xref Limited Reports Reduced Losses and Positive EBITDA Amid Market Challenges

Xref Limited reported a significant reduction in losses for the fiscal year ending June 30, 2025, with a 66% decrease in loss from ordinary activities after tax compared to the previous year. Despite challenging market conditions, the company achieved a positive EBITDA and increased cash reserves through strategic cost management and a private placement. The company launched new products and maintained high customer satisfaction, positioning itself as a market leader. Looking forward, Xref aims to focus on sales growth, expense management, and continued product development to drive future growth.