Company posts net profit of $1.9 million compared to a $1.0 million loss last year
SYDNEY: Freelancer Limited (ASX: FLN, OTCQX: FRLCY) announced a significant financial turnaround for the first half of 2025, posting a net profit after tax (NPAT) of $1.9 million compared to a $1.0 million loss in the same period last year.
Group revenue rose 8.0% to $28.0 million, driven by higher take rates and disciplined cost control, pushing gross margins to 85.3%.
The company reported robust operating cash flow of $6.8 million, more than triple the $2.2 million recorded in the first half of 2024. Free cash flow reached $3.3 million, reversing a prior outflow of $0.2 million. Freelancer ended the period with $26.0 million in cash and equivalents, a 12.3% increase since December 2024.
Group Gross Merchandise Value (GMV), representing underlying transaction value, dipped 2.4% to $439.0 million. However, this masked divergent performances: Freelancer’s marketplace GMV grew 2.8% to $66.5 million, while Escrow.com’s payment volume declined 3.3% to $372.5 million. Escrow.com was a standout revenue performer, surging 32.3% to $6.1 million, aided by domain name growth and new e-commerce integrations.
Freelancer’s core marketplace added over 2 million new users, a 17.5% increase year-over-year, and saw average project size jump 36.2% to $365. AI-related project demand was a major growth driver, with the company stating it expects AI to eventually rival or surpass its traditional web development vertical. Strategic wins included a place on NASA’s 10-year, $475 million NOIS-3 program.
Escrow.com grew domain name transaction volume by 9.3% to $196.9 million and expanded into new verticals like agricultural e-commerce and heavy machinery. A pilot integration with a leading shopping cart provider processed its first transaction, with broader rollout planned. Loadshift, Freelancer’s Australian heavy freight marketplace, set monthly revenue records, with revenue up 9.1% despite weather disruptions, driven by improved matching efficiency and the launch of in-app audio/video calling.
Looking ahead, Freelancer’s second-half priorities include enhancing marketplace engagement, accelerating AI-driven innovation, expanding financial services, and driving operational excellence to achieve consistent monthly operating profit of at least $500,000.
Freelancer operates the world’s largest freelancing and crowdsourcing marketplace by users and projects, alongside Escrow.com, a leader in secure online payments, and Loadshift, Australia’s top heavy freight platform. It serves over 80 million registered users globally.