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): 0.57
• 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$0.15 ▲(0.00% Upside)

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.

Positive Factors

Revenue Growth

Xref Ltd's revenue growth of 7.32% indicates a positive trend in expanding its market reach and customer base, which is crucial for long-term sustainability and competitiveness in the recruitment technology sector.

Cash Flow Improvement

The improvement in free cash flow suggests that Xref Ltd is managing its cash efficiently, which is vital for funding operations, reducing debt, and investing in growth opportunities, supporting long-term financial health.

Gross Profit Margin

A high gross profit margin indicates effective cost management and pricing strategy, which can enhance profitability and provide a buffer against market fluctuations, contributing to sustainable business operations.

Negative Factors

Negative Net Income

Ongoing negative net income and EBIT margins highlight operational inefficiencies and profitability challenges, which could hinder long-term growth and investment capacity if not addressed.

High Leverage

A high debt-to-equity ratio indicates financial instability and potential solvency issues, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Negative Equity

Negative stockholders' equity raises concerns about the company's financial health and sustainability, as it suggests liabilities exceed assets, potentially impacting investor confidence and future financing options.

Xref Ltd Business Overview & Revenue Model

Company Description

Xref Ltd (XF1) is an innovative technology company specializing in the provision of automated reference checking solutions for the recruitment sector. Operating primarily in the human resources and recruitment technology sectors, Xref offers a platform that streamlines the process of obtaining and managing employment references. The company's core products include its cloud-based reference checking service, which enhances the efficiency and reliability of hiring processes for businesses across various industries.

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: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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$23.75M	-3.61	-31.01%	―	-3.43%	-40.65%
XF1	44 Neutral	AU$35.21M	-15.00	―	―	7.32%	67.11%
8CO	41 Neutral	AU$6.05M	-8.29	-9999.00%	―	-10.32%	69.30%
PRO	41 Neutral	AU$11.80M	-1.82	-133.07%	―	-4.90%	-52.78%
FLX	41 Neutral	AU$48.51M	-6.98	―	―	21.82%	6.83%
DUB	37 Underperform	AU$34.71M	-0.83	-212.09%	―	9.14%	65.30%

Xref Ltd Corporate Events

Xref Limited AGM Results: Key Resolutions Passed, 10% Placement Facility Rejected

Xref Limited announced the results of its 2025 Annual General Meeting, where all resolutions were passed except for the special resolution to approve a 10% placement facility, which did not achieve the required 75% approval. The meeting included the re-election and election of directors, approval of the remuneration report, ratification of previous share placements, and approval of the incentive plan. The rejection of the 10% placement facility could impact the company’s ability to raise additional capital, potentially influencing its future growth strategies.

Xref Limited Reports Successful Transition to Subscription Model and Positive Financial Growth

Xref Limited has successfully transitioned to a subscription-based business model, resulting in a 7% revenue increase to $21.3 million and a positive EBITDA of $2.5 million for the 2024-25 financial year. Despite a rejected acquisition offer from Seek Limited, Xref secured a $3.6 million placement from a strategic partner and strengthened its board with new directors. The company has streamlined its operations, introduced a single technology platform, and implemented self-sign-on and auto-renewal features to boost annual recurring revenue.

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.