Pureprofile acquires qualitative research specialist for $700,000
Pureprofile Limited (ASX: PPL) has announced the Pureprofile CRNRSTONE acquisition through a binding Asset Purchase Agreement for the assets of Bastion Stable Research Pty Ltd. The transaction, valued at $700,000 in cash, is expected to complete on 1 March 2026 with no conditions precedent remaining. The deal will be funded through existing cash reserves, avoiding shareholder dilution, with one-off transaction costs of approximately $50,000 to be incurred in the current financial year.
CRNRSTONE operates as an Australian market and social research services business, originally founded in 1992 as Stable Research before rebranding in 2022. The company delivers qualitative research fieldwork services to brands, organisations, and research agencies. Its proprietary panel, Soapbox, comprises over 100,000 Australians and supports a broad range of research methodologies with end-to-end project execution capabilities.
The clean transaction structure positions Pureprofile to integrate CRNRSTONE’s qualitative capabilities into its service offering without regulatory hurdles or delayed completion timelines. This represents a strategic capability acquisition rather than a purely revenue-focused deal.
What is qualitative research and why does it matter?
Qualitative research focuses on understanding the “why” behind consumer behaviour through methods such as in-depth interviews, focus groups, and open-ended questioning. Unlike quantitative research, which relies on surveys and statistical analysis to measure “what” consumers do, qualitative approaches explore motivations, attitudes, and decision-making processes that numbers alone cannot capture.
Pureprofile’s existing service offering centres on quantitative research through its proprietary panels, delivering data-driven insights based on measurable consumer responses. CRNRSTONE’s qualitative methodologies fill a capability gap, enabling Pureprofile to provide both research disciplines in-house. Previously, clients requiring qualitative work alongside quantitative studies would need to engage separate providers.
Full-service research firms that offer both qualitative and quantitative capabilities typically achieve higher client retention and larger project values. The ability to deliver integrated research programmes from a single provider reduces coordination complexity for clients and creates opportunities for cross-selling complementary services.
For investors, this acquisition addresses a structural limitation in Pureprofile’s service model that previously forced clients to split research budgets across multiple vendors.
Financial profile and earnings impact
CRNRSTONE is expected to generate revenues of approximately $3 million in fiscal year 2026, with pro-forma EBITDA of $300,000. The acquisition is expected to be earnings per share accretive in the first full year of ownership, reflecting the contribution of profitable earnings without equity dilution. The cash-funded structure means existing shareholders will benefit from the earnings contribution without ownership percentage reduction.
| Metric | Value |
|---|---|
| Acquisition Price | $700,000 |
| FY26 Revenue (expected) | ~$3 million |
| Pro-forma EBITDA | $300,000 |
| Transaction Costs | ~$50,000 |
The implied acquisition multiple of approximately 2.3x EBITDA suggests disciplined capital deployment. Pureprofile is acquiring a profitable business at a valuation that allows for near-term return on invested capital. The immediate profitability contribution supports earnings growth in the current financial year, albeit partially offset by one-off transaction costs.
For investors focused on capital efficiency, the relatively low acquisition multiple combined with cash funding indicates management’s confidence in achieving return hurdles without taking on leverage or issuing shares at current valuations.
Growth levers from the combination
The acquisition creates three distinct revenue growth pathways:
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Cross-selling CRNRSTONE’s qualitative services to Pureprofile’s existing client base. Pureprofile has delivered solutions for over 750 clients globally across agencies, marketers, and brands. Many of these relationships currently involve only quantitative research, representing an immediate addressable market for qualitative project work.
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Leveraging Pureprofile’s quantitative panel infrastructure to enhance CRNRSTONE’s research delivery. CRNRSTONE’s qualitative projects can now draw on Pureprofile’s broader panel network, improving recruitment efficiency and geographic reach for client studies requiring both research types.
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Expanding panel member earning opportunities through qualitative project participation. Pureprofile’s panel members can now participate in higher-value qualitative research projects, such as interviews and focus groups, which typically offer greater compensation than standard surveys. This supports panel engagement and retention.
CRNRSTONE’s proprietary panel, Soapbox, brings over 100,000 Australian members into the combined group. Panel assets represent long-term value in the research industry, as building engaged, profiled audiences requires sustained investment. The merged panel infrastructure strengthens Pureprofile’s position in the Australian market specifically.
These growth opportunities do not require significant integration capital expenditure, making revenue synergies accessible in the near term.
Strategic rationale and leadership perspective
The Pureprofile CRNRSTONE acquisition directly addresses a service gap that limited Pureprofile’s ability to retain clients requiring both qualitative and quantitative research. By bringing qualitative capabilities in-house, the company can now deliver integrated research programmes from initial concept through fieldwork execution and analysis.
CRNRSTONE’s heritage dates to its founding in 1992 as Stable Research, with a rebrand to CRNRSTONE in 2022. The business supports a broad range of research methodologies and delivers end-to-end project execution, enabling clients to make informed, data-driven decisions. This operational maturity reduces integration risk compared to acquiring earlier-stage businesses.
Martin Filz, Managing Director, Pureprofile
“We are delighted to welcome CRNRSTONE into the Pureprofile family. Its specialist qualitative research capabilities enhance our current service offering and aligns closely with our core business and values. The strength of the team and quality of the client base make CRNRSTONE a valued addition to the Group.”
Management’s commentary signals confidence in both cultural fit and commercial alignment. The emphasis on team strength and client quality suggests CRNRSTONE’s value extends beyond revenue numbers to include retained institutional knowledge and established relationships. Long-standing client bases in service businesses typically exhibit lower churn rates, supporting revenue predictability post-acquisition.
What comes next for Pureprofile
Completion is expected on 1 March 2026, with asset transfer and operational integration to follow immediately. Key next steps include:
- Settlement and transfer of CRNRSTONE assets, including the Soapbox panel
- Integration of CRNRSTONE’s team into Pureprofile’s operational structure
- Commencement of cross-selling initiatives targeting existing Pureprofile clients
- Expansion of panel member participation opportunities in qualitative projects
The short timeline to completion allows investors to monitor integration progress and revenue synergy realisation in Q4 FY26 reporting. With no conditions precedent remaining, execution risk is limited to operational integration rather than deal closure.
The absence of earn-out provisions or deferred consideration tranches provides certainty on total acquisition cost, allowing investors to model return on invested capital without contingent payment variables. Management’s willingness to pay the full consideration upfront suggests confidence in CRNRSTONE’s earnings visibility.
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