Water Intelligence interim results: revenue up, margins higher, and a new growth engine
Water Intelligence has delivered a tidy first half to 30 June 2025, with growth where it counts and a new partnership that could change the pace of the business. Revenue rose 8% to $45.0 million, adjusted EBITDA grew 16% to $9.2 million, and adjusted pre-tax profit increased 8% to $5.7 million. Management says momentum improved into Q2 and is guiding for new KPIs to showcase operational gains over the next couple of quarters.
The strategic headline is the StreamLabs partnership. This gives Water Intelligence the ability to sell monitored leak-detection hardware on a white-label basis, tie it into its service network, and offer subscriptions for aftercare. In a fragmented US market, that is a meaningful differentiator.
What stood out in 1H 2025: growth shifting from franchise to corporate
- Group Revenue: up 8% to $45.0 million.
- Adjusted EBITDA: up 16% to $9.2 million, with margin up to 20% from 19%.
- Adjusted PBT: up 8% to $5.7 million, margin steady at 13%.
- Statutory PBT: down 11% to $4.2 million, reflecting IFRS 3 earn-out treatment and a comparative Las Vegas gain exclusion.
- EPS Basic Adjusted: up 8% to 22.9 cents. EPS Basic statutory fell to 17.5 cents from 19.0 cents.
The mix tells the story. Corporate store sales grew 13% to $37.1 million. Within that, US corporate sales were up 7% to $30.3 million, and international corporate surged 64% to $6.8 million, led by Ireland and Australia. Franchise royalties fell 10% to $3.21 million and franchise-related sales dropped 15% to $4.68 million, both largely because prior franchise reacquisitions reduced the franchise pool.
Key numbers at a glance
| Metric | 1H 2025 | 1H 2024 |
|---|---|---|
| Revenue | $45.0 million | $41.5 million |
| Corporate store sales | $37.1 million | $32.4 million |
| US corporate | $30.3 million | $28.3 million |
| International corporate | $6.8 million | $4.1 million |
| Adjusted EBITDA | $9.2 million | $8.0 million |
| Adjusted PBT | $5.7 million | $5.26 million |
| Statutory PBT | $4.2 million | $4.7 million |
| Adjusted EBITDA margin | 20% | 19% |
| Adjusted EPS (basic) | 22.9 cents | 21.2 cents |
| Net Debt to Adjusted EBITDA | 1.24 | not disclosed |
Why the StreamLabs partnership matters for growth and margins
StreamLabs, a Chubb company, brings wireless water monitoring that can alert on leaks and shut off the water. Water Intelligence can white-label these devices under American Leak Detection, own the dashboards and the data, and sell subscriptions for aftercare. That creates an end-to-end offer: monitor, detect, repair, and maintain.
Two reasons this is important. First, it supports a preventive maintenance model that customers increasingly want as water costs rise. Second, it shifts more revenue into higher-value, technology-enabled services with recurring characteristics. Management has piloted the offer in selected cities, trained technicians, and embedded workflows into Salesforce. A broader sales push starts around the ALD Convention on 22-25 October, with new KPIs to track the rollout.
Adjusted vs statutory: understanding the IFRS 3 drag
EBITDA is earnings before interest, tax, depreciation and amortisation. PBT is profit before tax. Water Intelligence reports both statutory and adjusted figures. Adjusted strips out items such as share-based payments, amortisation and non-core costs or gains, including certain IFRS 3 acquisition effects.
Two items hit statutory results this half. Profits from the 2H 2024 Ireland acquisition are treated as remuneration expense due to an earn-out structure, and a gain linked to the Las Vegas acquisition is excluded for comparability. The net effect: statutory PBT fell 11% to $4.2 million even as adjusted PBT rose 8% to $5.7 million. If you follow the underlying trend, adjusted is the cleaner read this time.
Operational model: the Dallas template and TES platform
Management is leaning into two levers. First, the Technology Enabled Solutions platform, built on Salesforce and proprietary apps, is lowering admin effort and software costs while improving service-level data. That helped lift adjusted EBITDA margin to 20%.
Second, the Dallas template. After acquiring the high-performing Dallas franchise in Q4 2024 and appointing its leader as ALD CEO, Water Intelligence is rolling out performance-based incentives and operating practices across 45 corporate locations. The goal is to lift corporate store operating margins from 18% in 2024 to 22% in 2026, which management says would unlock at least $2 million of organic profit if achieved.
Cash, leverage and buybacks: details to note
- Leverage is modest with Net Debt to Adjusted EBITDA at 1.24, including bank debt and deferred acquisition payments.
- Share buybacks are active: 60,000 shares repurchased during the period and a further 88,000 after, taking year-to-date to 148,000.
- Franchise reacquisitions continue, with West Georgia bought in August to build a regional hub in the US Southeast.
One point to flag for readers. The RNS highlights refer to cash and equivalents of $8.42 million at 30 June, while the balance sheet and cash flow statement show $4.21 million at period end. The company does not reconcile this difference in the release. Until clarified, I would anchor on the published balance sheet and cash flow numbers for period-end cash, and use the reported leverage ratio as your guide to balance sheet headroom.
Positives, watch-outs and what I’d watch next
What’s going well
- Strong corporate-led growth and clear differentiation with an end-to-end, tech-enabled offer.
- Margin expansion underway, with a credible route to further gains via TES efficiencies and the Dallas template.
- International corporate up 64% to $6.8 million, showing the platform scales beyond the US.
- Low leverage and active buybacks signal confidence and valuation discipline.
Where to stay cautious
- Statutory earnings down due to acquisition accounting. Adjusted is stronger, but investors should track the gap.
- Franchise income is declining as the model shifts to corporate. That is intentional, but it puts more onus on execution at company-owned locations.
- International corporate remains loss-making at the PBT line for 1H 2025 at -$167,683, despite strong revenue growth. Scaling to profitability is the next step.
- Cash disclosure inconsistency needs clarification.
Key catalysts and KPIs to look for
- StreamLabs rollout metrics: device sales, subscription attach rates and any recurring revenue disclosures.
- Margin KPIs from the TES platform and Dallas template as they propagate across 45 corporate locations.
- Further franchise reacquisitions and plumbing capability additions to deepen the one-stop shop.
- New proprietary leak detection equipment unveiling at the ALD Convention in October and the impact on competitive win rates.
Josh’s take
This is a solid set of interims that point in the right direction. The business is transitioning from a franchise-heavy network to a scaled, technology-enabled operator with national coverage and a subscription angle. That is exactly the kind of model that can compound margins and cash flow if executed well.
The near-term job is to turn StreamLabs pilots into a repeatable sales motion and to keep pushing corporate margins towards that 22% 2026 target. Keep an eye on the cash figures for clarity and on international profitability as volume builds. Overall, the direction of travel looks positive and the balance sheet gives them room to keep going.
