Canada · Delayed Price · Currency is CAD Tiny Ltd. Earnings Call Transcripts
Fiscal Year 2025
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Revenue and profitability grew strongly in 2025, driven by the Serato acquisition and digital services. Leverage decreased, free cash flow surged, and recurring revenue rose 50% year-over-year. Portfolio companies like Letterboxd and Metalab gained global recognition.
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Q3 saw strong revenue and recurring revenue growth, driven by Serato and Digital Services, with adjusted EBITDA nearing a 20% margin. The sale of We Work Remotely and increased fund investments enhanced capital flexibility, while deleveraging efforts improved the balance sheet.
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Serato's acquisition boosted recurring revenue and adjusted EBITDA, with free cash flow up $18.9 million year-over-year. Leverage ratio improved to 2.8x, and Tiny Fund One's net asset value rose to $142 million, driven by strong portfolio performance.
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Q1 2025 saw strong adjusted EBITDA growth, improved margins, and robust free cash flow, driven by digital services and strategic acquisitions like Serato. The company improved its leverage ratio and expects further recurring revenue and EBITDA gains in 2025.
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A 66% stake in a global DJ software leader was acquired, boosting recurring revenue and adjusted EBITDA. The deal strengthens the portfolio, accelerates growth, and supports ongoing deleveraging and cost optimization efforts.
Fiscal Year 2024
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Highest Adjusted EBITDA since IPO, up 13% year-over-year, with strong free cash flow and reduced leverage. Strategic acquisitions and cost rationalization drove recurring revenue growth, setting up for further EBITDA and cash flow gains in 2025.
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Adjusted EBITDA and free cash flow improved in Q3, driven by cost rationalization and a strategic shift to higher-margin, recurring revenue streams. Debt was reduced by 14% year-to-date, with further repayments planned, and portfolio companies showed strong growth and innovation.
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Revenue grew 4% sequentially and 7% year-over-year, with recurring revenue rising to 19% of total. Debt was reduced by CAD 60 million, and the company remains focused on operational efficiency, recurring revenue, and strategic acquisitions.