Spirit continuing to evaluate 'several acquisition opportunities'

Spirit Technology Solutions (Spirit) and its subsidiaries (collectively, the Group) has returned to profitability in its managed services business segment and posted its first profit since its restructure commenced in FY23, according to its unaudited FY25 trading update to the market.
 
Spirit achieved underlying EBITDA (uEBITDA) of $11.0 million, up from $1.7 million in FY24, with the full year result post-restructure within Spirit’s guidance of $10.9 million to $11.8 million.
 
The company posted revenue of $102.4 million, while its turnover of $147.4 million was up 17% on FY24 ($125.8 million), but slightly below the guidance range of $153.0 million to $163.0 million.

Spirit's's cyber security business segment achieved uEBITDA of $6.8 million, with a margin of 23%, while the communication and collaboration business segment delivered $7.7 million uEBITDA being 17% margin, supported by a strong product and recurring revenue mix.

Managed services returned to profitability with $0.3 million uEBITDA after a multi-year turnaround, supported by new security-enabled offerings and strategies that complement the Group’s cyber security segment.

Despite first half year headwinds in communication and collaboration, and continued investment in systems integration and restructuring, Spirit achieved an 11% uEBITDA margin.

The result was underpinned by the return to profitability of the managed services business segment post-restructuring, with the managed services team now focused on core security-related services.

This includes new offers such as Continuous Threat Exposure Management (CTEM) and Secure Networking, which are being rolled out in FY26.

While Forensic IT’s post-acquisition performance in FY25 was impacted by initial transition and integration delays, the business has laid a strong foundation for future growth, according to Spirit.

Spirit acquired Melbourne's Forensic IT, which provides incident response and digital forensics services for the Australian market, for $7.6 million in a mix of cash and shares in August 2024.

In February 2024, Spirit acquired Sydney-headquartered cybersecurity company InfoTrust for $34.6 million.

Building on FY25 momentum, the Group enters FY26 with a leaner operating model, an integrated platform and a clear focus on margin expansion.

Strategic initiatives are underway to consolidate gains across cyber security and managed services, and drive additional recurring revenue streams.

Spirit said that it continues to evaluate several acquisition opportunities and plans to supplement strong organic growth in FY26.

Spirit MD Julian Challingsworth said FY25 marks a turning point for Spirit.

"We have delivered a meaningful return to profitability, with strong earnings in cyber security, a full-year profit in Managed Services, and a leaner, more focused operating model," he said.

"This result reflects two years of disciplined execution. With the heavy lifting largely behind us, Spirit enters FY26 with a platform that is profitable, scalable and positioned for sustainable growth.”

The Company expects to release its audited accounts on Wednesday, 27 August 2025.

Underlying EBITDA (uEBITDA) excludes share-based payments, restructuring and integration costs, acquisition and divestment costs, gain/(loss) on disposal of non-core assets, fair value adjustments on contingent consideration, and impairment of non-current assets.