Ann: Quarterly Activity Report and Appendix 4C, page-4

I am nowhere near as clever as Ian. I had to get help summarising the quarterly.

Key Takeaways from Wrkr’s Q4 FY25 Report

• Positive Operating Cash Flow: Wrkr posted $373k in operating cash flow for FY25, marking its second consecutive year of positive results—an encouraging sign of operational sustainability.
• Revenue Drivers:
  • Strong performance from MUFG, REST, and Hong Kong ORSO scheme implementations.
  • 100% retention of PaaS clients, with revenue uplift via CPI-linked increases or renegotiated contracts.
  • SMSF Hub revenue grew 17%, which may interest you given your SMSF focus.
  • Float income rose $0.4m, driven by higher clearing house volumes.
• Strategic Investments:
  • $3.5m capital spend to prepare for PayDay Super, scale platform operations, and enhance security.
  • Headcount increased to 62, with key hires in engineering, QA, and architecture to support onboarding and delivery.
• AustralianSuper Win: Securing this tender is a major milestone, validating Wrkr’s platform scalability and positioning it for significant future revenue.
• EBITDA Outlook: Despite tight cost control, Wrkr expects an EBITDA loss for FY25, due to front-loaded investment ahead of revenue realization in FY26+.

Potential Concerns

• Timing Mismatch: Heavy investment in FY25 without immediate revenue may pressure short-term margins and investor sentiment.
• Overdue Invoices: $399k in receivables at 30 June could signal collection delays or client-side friction.
• Cost-to-Income Ratio: Still elevated, though trending down—worth watching as scale improves.
• Reliance on Pipeline Conversion: Future growth hinges on successful onboarding of REST employers and MUFG’s smaller funds.

PayDay Super (Starting July 2026): Strategic Implications

What It Is: Employers must pay super on payday, not quarterly. This reform aims to reduce unpaid super, improve transparency, and accelerate compounding returns for employees.

Wrkr’s Positioning:

• Already investing in platform automation, API-first architecture, and ERP integrations (e.g. SAP, Workday) to support real-time super flows.
• Early onboarding of clients ahead of the reform suggests strong execution capability.
• Positioned as a compliance and payment infrastructure enabler, Wrkr could become a go-to provider for super funds and payroll platforms needing to meet new obligations.

Overall, i am very happy to be holding, although given the size of my holding, every half-cent fluctuations cause heart palpitations.
In Trent we Trust!

Regards,
John