Hubify posts 89% EBITDA lift as it pivots from MSP to Managed Intelligence Provider
In its August 2026 investor presentation, Hubify (ASX:HFY) detailed its full-year FY26 results for the period ended 30 June 2026 and outlined an AI-first growth strategy. The company reported total revenue of $16.88m, of which 90% was recurring, alongside EBITDA of $0.66m, up 89% on the prior corresponding period, and net operating cash of $1.41m.
Management framed the results around a strategic thread that ran through the presentation: the company’s transition from “Managed Service Provider to Managed Intelligence Provider.” The update positioned FY26 as a foundation year for that shift.
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FY26 financial results detailed in the presentation
Across the year ended 30 June 2026, Hubify delivered improvements across profitability, cash generation and revenue quality. The presentation charted a three-year trend showing EBITDA rising from a loss of $4.36m in FY24 to a positive $0.66m in FY26, while net cash from operating activities moved from negative $1.96m to positive $1.41m over the same span.
Recurring revenue continued to build, reaching 90% of total revenue in FY26 after holding at 87% in both FY24 and FY25. The company ended the period with a final cash position of $3.79m and zero bank debt.
| Metric | FY24 | FY25 | FY26 | Trend |
|---|---|---|---|---|
| EBITDA | $(4.36)m | $0.35m | $0.66m | Improving |
| Net Cash from Operating Activities | $(1.96)m | $0.34m | $1.41m | Improving |
| Recurring Revenue | 87% | 87% | 90% | Improving |
Key standalone figures for the reporting period included:
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Total revenue: $16.88m, 90% recurring
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Gross margin: 33%
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Net operating cash: $1.41m, up $1.07m (315%) on the prior corresponding period
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Total cash: $3.79m, with zero bank debt
Two profit streams and the Optus enterprise partnership
The presentation described two foundation profit streams providing the platform for growth. The Managed Technology division spans advisory services, AI consulting, AI readiness and deployment, cyber security, cloud services and network infrastructure, while the Voice, Data & Mobility division covers unified communications, MS Teams calling, fibre and NBN, IoT, mobility and satellite services.
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Managed Technology: 116 customers, $11.6m revenue, 91% recurring
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Voice, Data & Mobility: 753 customers, $5.3m revenue, 87% recurring
On the enterprise front, Hubify detailed a co-branded partnership with Optus. The company noted it has an MSA in place with Optus enabling Optus to provide Hubify technology services to clients, with the two also addressing the market through joint go-to-market activities and RFP responses. Enterprise customers referenced in the presentation included CBUS, HammondCare, Transdev, GE HealthCare and BOC.
Understanding the AI adoption gap
The opportunity Hubify is targeting sits in the gap between AI innovation and AI adoption. Developers build powerful tools, but businesses often struggle to embed them into real operations, creating demand for expert integration and change management services.
The presentation cited Gartner forecasts of total AI spending of US$2.53T in 2026 and US$3.34T in 2027. It also noted that 88% of companies report using AI, yet most remain in the pilot phase.
According to the presentation, the major hurdles businesses face in adopting AI include:
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Data quality, reliability and bias
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AI talent shortage, alongside governance, privacy and compliance concerns
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Unclear ROI, strategy, cost and infrastructure constraints
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Integration with legacy systems and organisational change management
These barriers frame the services opportunity Hubify aims to address through its technology services division.
The AI-first investment thesis, from MSP to MIP
The core of the investment case, as outlined in the presentation, is Hubify’s move from Managed Service Provider to Managed Intelligence Provider, pairing managed services with the automation and governance clients need to apply AI safely. Management stated that being the provider clients ask first earns better margin, longer tenure, and a much harder position to displace.
The AI revenue model detailed in the presentation involves identifying best-of-breed AI solutions providers and co-investing through investment, equity and options to accelerate go-to-market activities. Hubify earns AI product revenue share from partners, plus AI advisory, integration and implementation revenue from clients. AI partners referenced included GADALI, LABRYNTH, TechData and HubLab.
The presentation also referenced a February 2026 placement of 5,952,381 ordinary shares at 4.2 cents, raising $0.25m for AI growth. This was Hubify’s own placement, and no valuations were disclosed for any AI partner co-investments.
For investors wanting to understand the mechanics and commercial terms behind Hubify’s AI partner co-investment model, our deep-dive into the HubLab equity investment covers the valuation, option structure, anti-dilution protections, and the rollout status of CERTAiNTY, the insurance-backed payroll assurance platform at the centre of the RegTech opportunity.
The HubLab partnership announced in February 2026 marked the first concrete step in that pivot, pairing a US AI commercialisation arrangement with a $250,000 placement priced at a substantial premium to the prevailing market price.
FY27 outlook and next steps
Looking ahead, management stated that the sales pipeline is building well, with opportunities positioned to close in early FY27. The company noted that its operational initiatives, focused on business improvement through AI, automation and best-of-breed practices, are expected to continue driving improvements in efficiency and profit margin.
The presentation added that Hubify’s improving cash position provides the opportunity to execute on accretive acquisitions and invest in high-margin revenue growth, which management identified as the core focus areas in FY27.
Ready to Explore Hubify’s Transition From MSP to Managed Intelligence Provider?
Hubify’s FY26 results mark a significant inflection point, with EBITDA surging 89% to $0.66m and net operating cash growing 315% year-on-year, all underpinned by a 90% recurring revenue base and zero bank debt. The company’s AI-first pivot — pairing managed services with intelligent automation and a co-investment model across select AI partners — positions it to capture a growing share of the enterprise AI adoption gap.
For a closer look at the company’s strategy, pipeline and FY27 growth priorities, explore the Hubify investor centre at hubify.com.au to access the latest announcements and presentation materials directly from the company.