Good morning, everyone, and welcome to the Tinybeans Group Q3 FY 2026 Investor Webinar. I'm Jane Morgan, Investor and Media Relations Manager, and today I am joined by our Interim CEO, Tracy Cho, who is dialing in from the U.S., and our CFO and Executive Director, Rebecca White, who is here with us in Sydney. Today, Tracy and Rebecca will be walking through the Q3 FY 2026 results, which mark Tinybeans' first EBITDA positive quarter in the company's history. This will be followed by a Q&A session. To ask a question throughout today's webinar, please use the Q&A function, which can be found at the bottom of your screen. Tracy, I'll hand over to you.
Thank you, Jane. It's wonderful to have everyone here with us this morning, and good evening to those joining from the U.S. I'm delighted to be presenting Tinybeans' Q3 FY 2026 results today, my first time doing so as Interim CEO. This has been a genuinely transformational quarter, the first EBITDA positive quarter in Tinybeans' history, and Rebecca and I are excited to take you through how we got there and where we are headed next. Before we get into the results, I'll briefly touch on the disclaimer slide. As with any forward-looking statements, and there are a few in here, actual results may differ. All dollar references throughout are in USD, unless stated otherwise. With that, let's get into the results.
For those of you who are new to Tinybeans, the key things you need to know are: we are the only privacy-first portfolio of memory platforms purpose-built for families. We serve millions of families worldwide. We provide a private, secure place to curate, protect, and preserve the moments they never wanna forget. We currently operate across two distinct platforms: Tinybeans and Qeepsake. Together they form the foundation of our mission to build a trusted portfolio of privacy-first platforms that empower families to hold onto the moments that matter now and for generations to come. A quick snapshot of where we stand today. Tinybeans is dual listed on the ASX under TNY and on the OTCQB in the U.S. as TNYYF.
Our register is anchored by Thorney Investment Group, who hold around 30%. They have been a longstanding institutional supporter of the business, and by Qeepsake, who hold just under 10%, a direct result of the all-scrip acquisition we completed earlier this financial year. Our board and management team have been deliberately built for our next phase of growth. James Warburton, our chair, brings deep media and digital experience, most recently as MD and CEO of Seven West Media. Rebecca, who you'll hear from shortly, joined as CFO in 2025 and was appointed Executive Director earlier this year, bringing a strong track record across ASX-listed technology businesses in both the U.S. and Australia. Matt is Chief Product Officer with SaaS scaling background. Carolyn Simensen, who has had Head of Marketing experience launching brands internationally.
On my own background, I have spent 20+ years scaling U.S.-focused digital media businesses, most recently as CEO of Qeepsake prior to its acquisition by Tinybeans. I'm based in the U.S., which is our largest consumer market, and driving growth here is a core part of my mandate. With that, I'll hand it over to Becca to take us through the numbers for the quarter.
Thanks, Tracy, and good morning, everyone. The last quarter has been, by every measure, a significant quarter for Tinybeans. First, most importantly, we delivered an EBITDA profit of $8,000 against a loss of $328,000 in the prior corresponding period. This impressive result has been driven by the uplift in revenue for the quarter of 86% year-on-year, along with the early operating synergies realized following the acquisition of Qeepsake. E-commerce revenue is up 678% year-on-year, driven primarily by the Qeepsake acquisition and ongoing optimization across our photo book range, both as a result of the iOS store launch and bespoke book cover designs. Subscription revenue is up 87% year-on-year, now representing 81% of total revenues.
This shift in revenue mix is exactly what we've been working towards, a durable, high-quality revenue base that compounds over time. We finished up with cash at quarter end of $1.95 million or AUD 2.81 million. With the business now sustainable, this provides us with a strong cash runway and the capacity to strategically invest in product development and brand. The combined group now stands at around 95,000 paid subscribers across Tinybeans and Qeepsake, a significant uplift in scale that we believe creates a stronger foundation for growth and monetization. Underpinning all of this are product and platform advancements, including AI-powered journaling and a refined global growth strategy under the strengthened leadership team Tracy just walked us through. Looking at the chart on the left, the revenue trajectory really speaks for itself.
In Q3 of FY 2025, we were just under $1 million in total revenue. Fast-forward to today, we've nearly doubled that to $1.79 million. The Qeepsake acquisition has been the primary catalyst, bringing scale that would've taken considerably longer for us to build organically. This slide really captures the inflection point. Five consecutive quarters of narrowing losses culminating in a positive EBITDA result this quarter. Three drivers are really behind that. First, the high margin revenue uplift post-acquisition, the 86% revenue growth I just walked you through. Second, real operating synergies from integrating admin and marketing functions and consolidating key technology platforms. These are the synergies we underwrote at the time of the Qeepsake acquisition, and they're now flowing through to the numbers. Third, ongoing cost discipline following a cost-out exercise we completed in early Q3.
Now, I wanna be clear about what this number means and what it doesn't. $8,000 of EBITDA profit is, in absolute terms, quite a small number, but what it does represent is a structural shift in our operating model. We're no longer burning cash to operate this business. The Q3 operating cash inflows of $324,000 confirm that. I'll hand back to Tracy now to take you through our operational performance and the outlook for the business.
Thanks, Becca. What does this quarter actually represent? For me, it's validation. Validation that the subscription-led model works, that the Qeepsake acquisition was the right strategic move, and that the cost discipline we put in place earlier in the quarter is already showing up in the results. Beyond the EBITDA and revenue numbers, what gives me particular confidence is the quality of the underlying business. We are now operating at scale across both platforms with around 95,000 paid subscribers. Across the key metrics, retention, customer acquisition cost, average revenue per user; there are some really encouraging signs. What's also exciting is that we're not standing still on the product side. We've made meaningful progress on AI-driven features this quarter. Importantly, all of the development is being delivered within our existing budgeted spend, no additional capital required.
Across financials, subscriber metrics, and product, it's a strong quarter on every front, and I'll walk you through some of the operational areas in more detail. We'll start with our subscriber base. As I mentioned, across both platforms, we now have about 95,000 paid subscribers, Tinybeans at just under 50,000 and Qeepsake at around 45,500. The headline metric here for me, however, is retention. Tinybeans is sitting at 95%, up from 93% last quarter, and Qeepsake has also improved, moving from 77% to 79%. That improvement across both platforms in a single quarter is meaningful and is incredibly strong by industry standards. This reflects the stickiness of the subscriber base and the recent work the team has done on renewal communications. Once we get families into the app, they stick around.
On customer acquisition cost, or CAC, Tinybeans has come down significantly from $100 in Q2 to $19 this quarter, driven by an intentional reduction in spend as we test new creatives and messaging that speak to a new generation of moms. Qeepsake's CAC has moved in the other direction, which is also by design. We deliberately reduced marketing spend immediately post-acquisition as we were determining the best go-forward strategy for the product. Now that we've figured that out, we're dialing up the spend again. It's worth noting that the CAC is still far below industry standard benchmarks for both platforms, which is a real opportunity for us moving forward. ARPU has softened slightly on both products versus last quarter, that's largely a timing effect. Q2 benefited from the Black Friday and Christmas e-commerce spike, the comparison isn't quite apples to apples.
Taken together, the Tinybeans platform continues to deliver strong operating metrics across the group, and it remains our primary focus for growth and product development going forward into the next quarter. AI is something I feel strongly about, and I wanna spend a moment on why it matters so much for where we're headed. We are at an inflection point across the tech industry where AI is rapidly moving from a differentiator to a baseline expectation. For consumer apps, it will very soon be table stakes, and the companies that are embedding it thoughtfully into their product experience now will be the ones best positioned for when that shift fully arrives. For Tinybeans, AI isn't about bolting on a feature for the sake of a fancy headline.
It's about solving real problems that the families using our apps actually care about. The number one feature parents tell us that they would pay for is photos that are organized and searchable. That's exactly what our AI photo organization work addresses, with automated content tagging and smart album creation currently in development. For Qeepsake, we've already launched AI-powered journaling prompts personalized by each child's age and development stage. The early cohort data is encouraging, with improvements in engagement and increased content creation beyond the zero to two age range. This directly supports both subscriber retention and our e-commerce revenue stream. Importantly, we're delivering these features within our existing product development budget. We're not chasing AI at any cost. We're applying it deliberately in the areas it will have the greatest impact on engagement, retention, and conversion.
Alongside our subscription revenue model, e-commerce is emerging as a really exciting incremental revenue stream. This quarter's 678% year-on-year growth, while partly reflecting the low base from pre-acquisition, demonstrates the genuine potential here. The proposition is elegant in its simplicity. Our users are already building up years of memories inside our platforms. The photo book is a natural extension of that. A bespoke premium Qeepsake generated directly from the memories a family has already captured. That's a fundamentally different and more compelling offering than anything on a generic photo printing site. From an investor perspective, the margin profile is attractive. High margin, incremental revenue sitting on top of our existing subscriber base from users we've already acquired.
The Mother's Day collection we've launched is a good example of how we intend to build this out with a seasonal, emotionally resonant offering designed to convert when families are most motivated. It's in its early days, but it's a revenue stream that we're actively building and investing in, and one we expect to grow as a meaningful proportion of total revenue. One of the first things I did coming into this role was to really go back to the basics and ask, "Who are our users, and what do they actually need?" We had two platforms, two user bases, and an important strategic question to answer. Do we consolidate or do we lean into the difference? Our internal research gave us a clear answer. The two apps have two genuinely distinct audiences with different needs, different behaviors, and different emotional relationships with the products.
Tinybeans users want a collective family archive, a shared space where the whole family contributes. Qeepsake users want something far more personal, an intimate individual experience. Trying to serve both with a single product would mean doing neither particularly well. For me, the decision was clear. We need to operate a deliberate multi-brand portfolio with each platform optimized for its audience, but with the benefits of running on a shared infrastructure that drives real operational efficiency across the group. Importantly, the integration playbook we've built through this process is repeatable. As we look at future M&A opportunities, we now have a proven framework for how to bring platforms into the group, realize operational synergies quickly, and keep each brand true to its audience. This slide really gets to the heart of our growth challenge and also our growth opportunity.
Our research told us something that fundamentally changes how we approach user acquisition. The average age of a new mom in the U.S. is around 27. That means our core target user is Gen Z, not millennial. That distinction matters hugely in terms of how we reach them. They're no longer discovering apps through the app store. They find them on TikTok and validate on Reddit, and they're increasingly on ChatGPT and Claude. They have higher expectations of product performance from day one, and privacy isn't a feature that they're impressed by. It's a baseline requirement. Our organic growth has stalled, and we're being honest about that. The opportunity is significant because we already have the product they're looking for. The work to be done is about closing that gap between what we've built and how we're found. We're doing that across three pillars.
Shifting discovery towards the channels where Gen Z actually live, repositioning around privacy and the emotional value of memories, and continuing to advance the product with AI features that make the experience feel effortless. The asset is already there. The next phase is making sure the right people find it. This slide is one I feel genuinely excited about because the regulatory landscape is moving in our direction in a very meaningful way. Across Australia, the U.S., and globally, we're seeing governments tighten children's data protection, restrict social media access for minors, and hold platforms accountable for how they handle family data. COPPA 2.0 is advancing in the U.S., and in the U.S. last year, the surgeon general stated loneliness was a public health crisis, and social media platforms are being called out for exacerbating this epidemic.
Australia has already legislated social media bans for under 16s, and more countries are following suit. Tinybeans was built 12 years ago with privacy at its core, long before any of this was a requirement. I wanna share an email our customer support team received today. The user wrote, "I thought you might appreciate a milestone from one of your longtime users. 11 years ago in 2015, in the weeks leading up to my daughter's birth, my wife and I created her album. Since then, the album has quietly grown up alongside her. Thousands of moments captured and shared over more than a decade. Today marks something new. She's 11 now and officially old enough and eager enough to start adding her own photos to the very album that began the day she was born. It's a strange and full circle moment.
Your app has been the backdrop to an entire childhood. Thank you for building something that has allowed us to capture this journey, and one we hope will continue to span a generation. While the rest of the industry is navigating the trust crisis, we're already the alternative families are looking for. The tailwind is real, and we intend to make the most of it. That's the opportunity in front of us, and the unit economics of this business are compelling. Every year, 3.6 million babies are born in the U.S. alone. Each one of those births represents a family entering what we call the golden window, the moment where daily habits form and emotional investment in preserving memories is at its peak. Globally, that's 132 million births annually. That's a large, predictable, renewing, addressable market.
What makes the Tinybeans opportunity truly compelling is the lifetime value potential. Remember how I said earlier that we have a sticky offering, that parents like to hang around once they join us. Our product roadmap is being deliberately designed to extend that relationship across every stage, and our unit economics validate the model. A family that joins us at birth doesn't just need us for the first year. They need us through the broader parenting years and ultimately as a permanent family archive. The opportunity isn't just the size of the market, it's the depth of the relationship we build with each family within it. As we head into Q4, I want to leave you all with a clear sense of where we're focused, and what success looks like for us over the next quarter.
As James has noted, we've reached a genuine inflection point. The priority now is on executing against the three pillars we've outlined: discovery, positioning, and product advancements with discipline and focus. On discovery, we're meeting Gen Z where they are with the primary goal of growing our paid user base. On positioning, we're refreshing our brand messaging around privacy and trust, emphasizing the importance of connection. Lastly, on product, we're focused on delivering the AI features we've outlined today with the goal of improving free-to-paid conversion. We're well-positioned. The team is energized, and we're looking forward to updating you on our progress with our Q4 results. Becca and I are happy now to take your questions. I'll hand it back to Jane.
Wonderful. Thank you for that, ladies. Again, webinar attendees are encouraged to use the Q&A function, which can be found at the bottom of your screen. Let me jump into them. Tracy, I'll go to you for this one. Qeepsake's retention is 79% versus Tinybeans at 95%. This attendee has just asked: Why is the Qeepsake retention so much weaker?
I want to start off by saying Qeepsake's retention is above industry standards. It's slightly lower than Tinybeans. It represents one of the core differences. Tinybeans is harder to leave, as you have a built-in community. On Qeepsake, it's mostly for you. As you complete your baby book in the first or second year, you're more likely to churn. As we mentioned earlier, Tinybeans is the main strategic focus and growth engine because of this. We will continue to optimize Qeepsake and look to maximize revenue per user.
Thank you for that. Okay, next one. Becca, I'm gonna go to you for this one. Qeepsake's CAC went from $8 to $35. Can you just walk us through that?
Yeah. Like Tracy said earlier, that was absolutely by design. Once we completed the acquisition, we really did put that marketing spend on a hold, just to see where we should best deploy that for the business. Now we've started figuring that out. We're redeploying those marketing dollars, and we'll continue to monitor it. As Tracy said, still below industry standards.
I'm gonna stick with you for this one as well, Becca. Cash is $1.95 million. This attendee's just asked how long is that runway and are we gonna need to raise capital?
Yeah. The current quarter shows that we're no longer burning through our cash. We've got a strong cash balance, as you said, Jane, and no debt on the balance sheet. Our current cash position supports the business and our current strategy, and there's no current plans to need to raise equity. We'll keep the market informed as always.
Wonderful. Sorry, quite a few coming through. Tracy, I'll go to you for this one. The multi-brand strategy reads like a reversal of the original Qeepsake consolidation thesis. What's changed?
Fair question. The portfolio approach isn't really a reversal. It's more of an evolution, I'd say. We captured the operational and cost benefits of a single business, and now we're optimizing our go-to-market to maximize what each brand does best individually. As I had mentioned earlier, they serve completely different user needs.
Wonderful. Becca, I'll go to you for this one. Early stages at the moment obviously, but is Q3... Q4 rather, also looking to be EBITDA positive?
We won't be giving specific forward guidance on that at this time. Nothing structural has changed in the business between Q3 and looking into Q4. Revenue drivers are the same. We've locked in those operating synergies, and the cost base is really stable. We've communicated before the goal for the business is to be self-sustaining, and I think Q3 shows we're really on the right trajectory for that.
Wonderful. Tracy, I'll go to you for this one. When does AI photo organization launch on Tinybeans?
Development has started. We're being deliberate about the quality. We will update the market when we have a launch date to share.
Perfect. again, coming through a few times. Tracy, given our shift to where the Gen Z new customers are, what guidance do you sort of have for growth, and what programs are practically being implemented to drive growth?
We are launching acquisition on new channels. These are channels where Gen Z lives, TikTok, Reddit. We're exploring more community-led opportunities to integrate our brand and become a part of the conversation. We're also refining our positioning so that it lands with this new generation of moms. We want to make sure that we are answering the needs that she has right now, and so that's been a lot of the discovery work that we've been doing.
Thank you. Again, another one for you, Tracy. How do you compete with Apple Photos, Google Photos, Shutterfly?
Good question. One that we get asked often. Well, I would say that we're not really competing with them. We're complementing them. Those are utilities, and what we offer is fundamentally different. We're a memory curating experience built specifically for families and the moments that matter to them the most, and helping that stand out against your, you know, camera rolls loaded with all sorts of different photos.
Brilliant. Okay. Again, another one for you. On the e-commerce side, are you looking at adding other products, to that side of the business?
Yes. Photo books are definitely the hero product, and this will remain the case. We are testing additional product lines, including mugs and canvas prints and other personalized goods. You know, the logic remains the same. Users have a library of photos and memories already sitting in our platform. It makes sense that they would purchase a second or third product type once we've established that habit. We are running tests, and we will scale what works.
Brilliant. There's just one last one here. Are you considering further M&A?
Our focus right now is on organic growth, executing on what we have and deepening monetization across both platforms, but we won't rule out M&A categorically. If the right opportunity presents itself that helps achieve our mission, you know, accelerates our strategy and makes sense financially, we'd definitely look at it and use that playbook that we've now created through the Qeepsake acquisition.
Wonderful. Well, that looks like we've got answer to all of the questions. If we've missed anything or if you have further questions for the ladies, please feel free to reach out via the contact details on the bottom of our ASX releases. Tracy , Rebecca, again, congratulations on the transformational quarter and look forward to hosting you again next time.
Thank you, Jane.
Thank you.
Bye.