Hi, everyone. This is Gary Miles.

I'm here for our HY1 26 outlook and results. Thank you for attending and participating.

If we go to the first slide on our financial summary. Revenue is at $110 million in the period, down 1.7%.

Our recurring revenues were up 11.6% from $76.4 million to $85.3 million in the half. The non-recurring revenues that were down were generally down to a couple sales that slipped to the right that we had not expected.

These sales were due to broader business dependencies. They were not lost to competitors.

We'll talk about our pipeline shortly. The Veovo business performed strongly.

Revenue was up 3%, but if you strip out the hardware sales, it was up 20% versus prior period and a 30% step-up in recurring revenues, which was a fantastic result. EBITDA, as you can see in the numbers, at $7.9 million versus $13 million.

Lower utilities project revenue dropped to the bottom line in this case. Cash, at $73.2 million.

As those that follow us closely know that this half is a weaker half in terms of cash because we have some big cash outflows in the first half of the year, and it catches up in the second half. John will come to that in more detail.

We expect FY 26 to be cash generative before acquisitions and share buyback. We will come to the buyback in due course.

We will focus now on closing the acquisition of DTP and Factor, which we announced the Factor acquisition earlier in the week. In the FY 26 outlook, this remains unchanged from the 5th of May, I'm not going to read out the entire outlook statement.

I would like to say that it's too early to provide guidance for FY 27, but we are reiterating our medium-term guidance, which is to grow the business north of 15% CAGR with the medium-term target of 15% to 20% EBITDA margins. Now, we're going to spend some time on a couple strategic drivers that are really kind of a focus area for our investments, one of which is part of the Factor acquisition.

I'm going to talk about two megatrends that are driving particularly energy retail transformation, but also water transformation. The first one across both the water and energy sectors is the advent and the rise of AI.

To use AI to automate operations. Then on the energy transition side, price volatility, which I think everybody's becoming increasingly familiar with in the energy sector, is becoming much, much more prevalent and the complexity of the energy transition.

Let's jump into these two megatrends and what they mean for our customers and our business. The first driver is AI automating operations and lowering cost to serve for retailers.

We have some statistics here. If you look at a AI-enabled retailer, our expectation is that 30% to 70% cost reductions are very realizable over the next two to three years.

There's potential for enormous cost reduction here in the front office, back office, payments sections of the retailers. AI can also help with improved regulatory compliance, target marketing and segmentation capabilities, payments and collections improvements, and personalized offerings and renewals.

This is a big, big investment area for us. We've got some super exciting technologies in this space.

We're talking actively to many of our customers about it now. This is the space to watch and, for sure, that's driving not only our engagement with retail customers, but the acceleration of our software development life cycle.

The second one is around driver two, which is energy transition, which is creating price volatility and service complexity. The slide on the right, we created about three years ago about the changing environment of the energy marketplace.

You start to move to decentralized energy resources and customers having batteries in the driveway and on the side of their house, or big grid-scale batteries. Obviously, global kind of politics are driving also energy fluctuations.

This energy transition is driving modern system upgrades. The main issues behind this just the advent of smart meters and hyperscale data, every consumption point on the grid starting to have a forward forecasting curve.

They need to support distributed energy resource management. There, we've done an investment in Amber where we have a slide specifically on service innovation and personalization, gross margin management, advanced trading and hedging, which we're not in the trading and hedging business, but this is a modernization area for retailers.

Then machine learning for forecasting and pricing. The machine learning for forecasting and pricing is where we have capabilities in G2, but we've modernized those with our Factor acquisition.

We had some specific things that we were looking for that we're able to find in Factor, and so we closed on that transaction. I'd like to talk more about how that rounds out some of our capabilities as we move into supporting the energy transition for our customers.

The deal rationale around the strategic rationale is, first of all, Factor has developed the gold standard for pricing and forecasting. It's an exceptional product.

We scanned the market well. We actually have been looking on the market for a couple years.

We're integrating that into G2, it makes G2 more compelling. We can provide this as a upsell to all of our customers that we have today in the energy space, and it will help us win new business and push our pipeline forward.

The other reason that we've were very attracted to Factor is as a standalone point of entry. Factor can be stood up.

There's no need for market localization requirements. There's really no implementation project costs.

It's the same-day deployment, and so you can stand up retailers can stand up Factor outside of their standard billing and CRM system. It's an insertion point that we can is a light touch, but all around the world, and then develop relations with those customers and come in behind them and upsell our billing customer care solution.

This will be really helpful as we enter new geographies, and this is a really important part of our strategic rationale. The other thing anytime you're buying a technology, the technology has to be first-class if you're providing a bolt-on like this, and then the team should be fantastic.

From the first time I met Jeth, the CEO, and other members of the team, this was clearly the group that I wanted to bring inside Gentrack. A a superstar set of of people that know a lot about this domain and software development and had success pretty quickly on with their technology.

They are Wellington-based, the Factor team, here in New Zealand, but some of them will be coming to Europe to support our sales and our development there. We look forward to welcoming all of them into the Gentrack family.

If you look at the next slide, this is our capability model, which, as you can see, is a very broad set of capabilities. I'm not going to go into all the details.

I would say that from a capability perspective, this stack supports B2B and B2C for energy and water. This is a super capable stack.

We've highlighted the areas on distribution energy resource management in the green area, where we're working with Amber. Then in the kind of pinkish area, this is contract pricing and forecasting, where we plug Factor in to G2 to make it even more compelling.

If you look at the next slide, these are the transaction terms. I'm not going to go through all the detail on this slide.

I know that there'll be questions for John and the team about some of this, I assume, in the Q&A section. I would like to say that the enterprise value of $24 million was paid for with cash from our reserves.

There is a potential for an earn-out of additional $10 million pegged against performance targets on the revenue over the next three years. Once again, we're very excited to have them join our organization.

We'll come into this in more details in the financial section of results today. I did want to touch, for the first time, on some more concrete updates from Amber.

We spoke to Chris and Dan, the leaders of the Amber organization, and to see if they were comfortable with us providing an update to their market traction. I think if you live in Australia, you have a pretty good understanding of Amber.

There's probably some Amber users here on the call, even. The most interesting statistic from this slide is that from retail propositions that get a controlled battery, Amber is now taking north of 65% of new adds from the marketplace.

That there's battery subsidies, battery uptake has come along. Amber is actually, through their distributed energy resources, is now deploying approximately 300 megawatts of power back into the grid.

This is a fantastic success story for the energy transition. You can see the performance on the hockey stick.

We're really pleased with the investment we've made. This, in my view, is undoubtedly the best stack in the world to solve this problem.

We've helped them into Europe and expanding their technology and making our G2 stack more compelling. We feel good about this investment and the direction it's headed and the value that it brings to the Gentrack customer base.

When we announced the DTP acquisition, we had a call on this subject. We did not have James with us on the call, James Williamson, who leads our Veovo business, because he was under the weather a bit with the virus.

He's here actually across the table from me now. I'm going to hand over to James to let him give to everybody an update on Veovo as a whole as it becomes a bigger and bigger organization and inside the Gentrack family.

James, let me hand over to you.

Thanks, Gary. It's been an incredibly busy first half of the year for the Veovo business.

On the delivery side, we've delivered more projects than we've delivered ever before in a half. Particularly of note there is the incredible 15 airports in Saudi Arabia that we've now transitioned to the live state, but also significant GenAI airport operations platform upgrades both in the Northern and Southern Hemisphere.

On the business winning front, we've added a number of real flagship customers as well. I'm particularly pleased with the first one noted on the slide here, the tier-one airport we won in the Asia-Pacific region.

This is throughout total airport management platform. It not only underlines our position as the tech lead of Airport 4.0 technologies, but this opens up a whole new region for us.

Previously, obviously we've been incredibly strong in Australia, New Zealand with our technology, but this now moves us widely into the Asia-Pacific region, and this is a real top tier-one airport. Slot management win over in North America for the Port of Seattle, Seattle's International Airport.

This is a new customer for us, just going in with an initial first product, but a great option to grow that over time. We continue to expand our customer footprint with GenAI upgrades, as well as expanding our passenger predictability footprint all our major airports.

Previously, when I presented to you guys, I talked about our NAV CANADA win. This is our biggest revenue management win ever, and moves us into the air traffic navigation market.

That project's now well kicked off and in the design phase and due to go live in 2027. Now, as Gary said, unfortunately I missed the chance to announce our intention to acquire DTP, I just wanted to share my thoughts on that for a couple of minutes now.

We've been working with DTP for the last few years. They've been absolutely key to our wins in the Middle East, both with Dubai Airports for our billing platform and then they took us into Saudi Arabia.

We see significant growth opportunities in the Middle East. The biggest airport projects are happening there, and the most ambitious technology projects are also happening there.

DTP had fantastic relationships with all the airports in that region, and we really see this as being a growth driver for us going forward. Not only have they got great relationships, but they actually bring a fantastic team of deep airport technology knowledge, and particularly in technologies that are key to Veovo.

We see this both enhancing our position in the Middle East, but actually to me more importantly, we can use those 60 staff to deliver more projects globally. They also bring key capabilities around service management and cloud operations.

Finally, they've invested heavily over the last few years in some critical technologies that fill gaps within the Veovo portfolio. Particularly, I'm excited to see their AirportView app.

This is a community app, which effectively will put out data and systems into the hands of thousands of users at each airport that we're in. This is a great cross-sell opportunity for us to take to our 160 airports globally.

They've got some very exciting bolt-on capabilities for our airport operations suite, that includes some agentic AI capabilities as well as some extendable data models. They've got a world-class integration platform that drives the whole of Dubai Airports data integration, and we're looking to take that to our wider customer base as well.

Really excited about the acquisition. It's going to take another couple of weeks, I think, until complete, and then we're looking forward to welcoming them into the Veovo family.

Gary?

Great, thanks, James. On the closing remarks before we hand over to John for the financials, Gentrack is well positioned to lead across both airports and utility sectors as a modernizer operations and adopt AI.

These are sizable markets in which Gentrack has grown 18% CAGR since I joined in FY 20. We are confident in our target of greater than 15% CAGR in the medium term.

The utilities pipeline across the next 12 months includes more than 10 new customer opportunities and spans circa 30 million meter points in Europe and APAC. We still target to win three to four deals from these 10 opportunities.

We target to win these from now through March '27. This number of wins would set us up for strong growth in FY 27 and momentum for beyond.

Veovo has had an exceptional first half. It continues to win new customers and is delivering high growth in recurring revenues.

We expect this success to continue. I would like to close on my section by saying that this is a company with a strong balance sheet, no debt, track record of cash generation, providing an engine for bolt-on M&A.

The acquisitions of DTP and Factor demonstrate how we use this to support our growth. We remain very confident in our leadership abilities around the world and the size of the opportunity that sits in front of us.

With that, I'd like to hand over to John. John, please.

Thanks, Gary. Looking first at the group P&L account, you can see there what Gary was referring to earlier, strong growth in recurring revenue, that's up 12%.

That's been offset by lower non-recurring revenue. That's project revenues at utility, and lower hardware sales in Veovo.

Now, we cover operating costs a little later, I won't cover that here. Just talk a little bit about the LTI costs, which we again split out here, you can see the impacts on half on half.

We've always guided that these would be lower in FY 26 than they have been for the last couple of years. In addition to this, this half-year, we've benefited from a $2 million reversal of costs.

That relates to the 2023 management LTI scheme, where we no longer expect to meet the last EPS hurdle on the last vesting date. What happens under accounting rules, when that happens, we reverse the costs that we've booked in prior periods against that scheme, and that's what you see in this half-year.

Only affects this half-year. On Amber, and Gary talked about their growth a little earlier, they're investing to grow, and so we take our share of that cost through our P&L account.

You can see that here, it's the $1.6 million of costs. What it means is that balance sheet number that we hold for Amber, which is around $13 million, is actually less than the cost of our investment, which, in turn, is less than their valuation.

The last thing to highlight on the group profit and loss account is the tax credit you see there of $3.9 million versus a almost $2 million charge in the prior period. The reason we have a tax credit is because of the favorable treatment that we see on the LTI costs in the UK and in New Zealand.

That's because it's a tax deduction at the value they vest at, not the accounting value. That tax deduction can be used to offset profits in the year and in future periods.

Then we're starting to see the benefit of that flowing through as less cash tax paid this year, and I'm sure we will in future years, too. Now, turning to utilities revenue.

Just a small point here. I note in the table below, annual fees and managed services, in prior presentations, we refer to that as contracted monthly recurring revenue, CMRR, and support services, we refer to as TRR, as actual recurring revenue.

The naming convention that we're showing here now matches that used in our accounts. Just turning back to what the numbers tell us, recurring revenue is 9% higher.

We'll see something similar to that for the full year. That's implied in the guidance that we've given for the full year.

Strong growth in our support services compared to the first half of last year. That's actually spread quite widely across our customer base.

Then what you see here is the lower non-recurring revenue. That follows the completion of several projects that were running last year.

Includes implementations at Utility Warehouse and Nocsel, the upgrade of Power and Water Corporation, and the second phase of works we had at NEOM in Saudi Arabia. Then those projects running off haven't been replaced by new customer wins because of the delays that Gary referenced earlier.

Moving across to our cost base for utilities. You'll see that our operating costs are higher than the prior period.

They're actually very similar to the operating costs of the second half of last year. Utilities delivered a much stronger revenue performance in the second half of last year in terms of its project revenue.

I think it shows that we had capacity to deliver more revenue in this first half than we did, and really shows the impact the delays in terms of new customer projects have had on EBITDA in the half. We continue to grow our investment in both sales and in product spend, and that includes shifting some of our delivery resource to product investment in the first half.

Thinking about second half, we're expecting our operating costs to grow more slowly than revenue in second half of the year. I guess the other point to note though is that, in terms of the LTI costs that you see here for utilities, they should be round about $2 million higher in the second half of this year because the first half benefited from the reversals that I noted earlier.

Looking at Veovo's financials, really strong half. Excluding hardware sales, it's grown by 20%.

The prior period includes quite high level of those hardware sales, and just so I think people are sort of clear what we're referring to here, this is where we bundle hardware within our projects for upgrades or for new customer wins as an intensive part of that project delivery. That type of revenue is quite lumpy from half to half.

It probably makes more sense to look at it on an annualized basis. Turning back to performance, the real call-out there is the big step-up in recurring revenue, up 30%.

That's spread across quite a wide range of customers from prior period upgrades and new customer wins coming to fruition, alongside this year's win at NAV CANADA. A really strong performance from Veovo in the first half.

The last thing to cover is our cash flow, where we ended the half at $73 million. In terms of our cash flow profile, our first half is always typically the weaker of the two.

That's because it includes big payments we have across the year. That's the payments of the prior year's staff bonuses, commissions, or taxes, the LTI payroll taxes, for example.

You can see that in the working capital outflow from employee costs of round about $10 million. That was a large number in the last half.

That heavily drives the first half cash outflow of $11.6 million. In the second half, we expect a working capital inflow.

What that means is that, overall, we expect the full year to be cash generative before acquisitions and buyback. That brings us to an end of the slides that I wanted to cover in this presentation.

There is more in the appendix that's a reconciliation. It really just shows how the revenue numbers that we disclose within this presentation map back to our interim accounts.

That brings us to the end of presentation and across on to Q&A. We're going to be taking questions by phone first of all, and then we will move to those questions that have been submitted online.

Paulie, are you there? Just checking with the audio team, how are we progressing with the phone questions?

We, unfortunately, are clear in the room.

Good morning, team. Could I maybe just start by asking a couple questions on the pipeline?

Could you give us a little bit of broad color around what actually caused the delays? Just given that it was across two customers, are the delays similar manner, and how should we think about the risk to those projects into the second half?

Hey, Guy. No, that's Gary.

Thanks for the question. We talked about this on the May 5th call in some level of detail.

Happy to reiterate it. We can't get into specifics on things that are with retailers that are not really ours to disclose.

If you look at the types of things that could happen that are beyond our control, retailers can go into M&A situations, they could have a trigger where the competitive landscape is going to change. For example, they could be deregulated and moving to competition in the near future that was delayed by the regulator, it took the trigger off trying to transform quickly.

There are things like that that can transpire that change the compelling event to move to a new billing and CRM system. As I mentioned, that was what happened to us in this period.

We were surprised by it. It's definitely not something that we had anticipated.

Those kind of things can happen on the marketplace. I don't think they're normal course of business, I wouldn't look at it as indicative of the market as a whole, but it's also something that we can't fully predict.

Thank you. Just given what's had, I suppose, a couple years where you had consistent upgrades in the guidance setting and then in this scenario, a downgrade, predominantly driven by that project revenue.

How do you think about your guidance settings as you go and look for the year ahead? How should we think I guess about risk to those more generally?

Guy, in terms of the full year guidance, and I think we referenced this on the call following the market update, what we try to do is to not be dependent on winning deals from our new customer pipeline to be able to fall within our guided revenue range for FY 26. We've tried to remove the dependency on that for this year.

Then for FY 27, it's too early really for us to give guidance because, again, there's work still to do. We're sort of clearly setting out here that we're not giving guidance for FY 27.

Maybe I'll just add what we also discussed on the call on May 5th. Thank you for bringing in the beginning of that statement, beating our earnings in prior periods.

We've never missed our numbers until this point. It's just not in our DNA.

Anyway, I just wanted to reiterate that that's definitely not something we plan to do.

Great. Thanks.

Just one last one on Factor. Could you give us any indication of this current size of the business and what growth would look like to hit the $17 million ARR earn-out target?

Sorry, Guy, the last part of your question was a little bit muffled. Could you just repeat that, please?

Just asked what type of growth Factor would have to deliver in order to hit the $17 million ARR required for the earn-out.

Obviously it's going to have to deliver some strong growth to meet the full earn-out target. It's what you would typically expect for an earn-out target.

They tend to be set at a good, strong, high bar. I think the only thing I would call out is that the statement we make in the deck in terms of being EPS accretive by FY 28, that's clearly set at a lower level of growth than the earn-out.

We're still going to go out and grow the business strongly, but we don't need to hit that kind of growth level to make it EPS accretive.

That's all for me. Thank you.

Morning, team. First question, when you say you're targeting three to four deals before March '27, and then say your pipeline in the next 12 months has 10 new prospects, it reads like six or seven of those fall between March and May next year, but that's probably not right.

How should we interpret that?

That's a misunderstanding. We do not propose a 100% win rate from our pipeline.

This is a qualified pipeline in which we have 10 deals, as we comment, north of 10 deals. As we said, we would target to win three or four of those.

Some we may not win, some may get delayed, pretty typical pipeline activity. That's the way you should look at it, and then some will go out of the pipeline, new things will come in the pipeline.

Does that make sense?

Just in terms of your question there, Josh—

You're sort of saying your win rate out of 10 is targeting three to four.

We're saying our close rate. It's not really the same as a win rate because some things could shift, et cetera, and other things may come in.

We don't really like to go too much into win rate, but we're trying to give some clarity on the size of the pipeline that's quite well qualified, and then what we would need to do to go into good growth in FY 27 and beyond.

Got it. That's helpful, thanks.

I appreciate you don't give guidance for FY 27, but you obviously don't have full visibility over your revenue, but you probably do to some extent over costs. I just wanted to ask, there's an increase in costs implied by your guidance into the second half of '26.

Is it fair to annualize that into FY 27?

I think on our cost base, you're right, there's a slight uplift in the cost base implied by the guidance because there's an upturn in the revenue. Don't forget, you've got to think about both the utilities and the Veovo business when you're kind of work that through.

I think in terms of FY 27, it's kind of hard to really make comment when we're not giving guidance here. I guess it will depend on the trajectory we think we're on in terms of how that cost base will grow into the following financial year.

Thanks. I appreciate you didn't put it in the release, but is there any sense you can give us of Factor's contribution to FY 26?

If we look at the acquisition cost of $24 million excluding the earn-out, it's roughly in the ballpark of DTP's $17 million. Is the revenue level sort of in the same ballpark as DTP, too?

DTP, we called out the contribution of DTP's revenue. For Factor, we're just saying that it's not going to have a material impact on revenue in the balance of FY 26.

They're businesses that are very different in their profile in that way. In terms of the costs that we take on and the sales effort that we'll put in to grow that business, what we have said is that that's actually included in the FY 26 guidance that we gave back on the 5th of May.

There's nothing that you need to sort of add in or sort of take account of in terms of the guidance we've already provided.

That's helpful. Last one from me.

Are there any sort of utilities globally that are currently using Factor that you're willing to call out? I guess some notable customers of theirs?

We're not disclosing that at this point. We've talked about which countries they're in, but we're not disclosing customer names at this point.

We completed the deal on Friday. I think it probably good grace to sort of talk to customers and the like before we start sort of highlighting them on public calls.

Yeah. Understandable.

Thanks very much, team.

Thank you.

Morning, guys. Just a couple from me.

I suppose, Gary or John, the first one was just if we are going to see in utilities a bit of a shift more towards less upfront project implementation type revenue and more on recurring revenue, will there be a bit of a transition over the next two or three years for that? Will that dampen some of the revenue growth in the short term?

Then obviously, with the high recurring revenue medium-term, you will start to see that growth be higher? Or is that obviously going to be more dependent on what customers you win?

Yeah. There's no doubt that if we're more aggressive and shorter delivery time for initial deployment, then the revenue will have some impact on growth on the short-term.

We have some other customers that are CapEx intensive. There's big organizations, and so they may push for CapEx.

That'll balance that off some. This is definitely transition that we're trying to make, and we're intentionally moving towards.

In a very positive way, that will affect the dynamics of our revenue and mix to EBITDA in the bottom line. It's hard to predict exactly how that'll play out.

The other thing that's happening though with AI is when you have an out-of-the-box stack and then you can start to run integrations with AI and interoperability with tangential systems with AI and things like that, the cost to deploy these systems also goes down. That's also driving a dynamic, and As the industry gets more and more success stories deployed things without such a long-term and cost to deploy it, and more energy companies and water companies will transform.

That's just part of a journey that the industry's on that we think will make a lot of sense for both the industry and for us.

Maybe the only other thing, Phil, I'd add in just context—

Awesome.

The only thing I'd add in context, Phil, also though is that our non-recurring revenue in FY 26, our guidance for it, it's comparatively a lower level than you've seen the last couple of years. When you're talking about the impact it has on growth going forward, it's coming off the back of a lower starting baseline, if that makes sense.

Gotcha. Just this next one kind of a follow-on, when I'm just looking at the composition of the utility revenues, obviously, the B2B is now up to about 40%, which possibly could be due to the lower project revenues.

Also with the Factor acquisition, is there kind of a subtle shift here more towards B2B away from B2C, or is that just a kind of a timing thing?

No, most of our customers are actually multi-play, and I wouldn't read into it that way. We like the B2C business, and we like B2B.

We're very strong in B2B. I think naturally that's a point that we have a lot of strength in sales processes, too.

If you look at our pipeline, there's plenty of B2C work in there that's pretty sizable.

Thanks. Just the last one, obviously with Anthropic, when they released the Mythos model to a select group of kind of customers globally, has energy companies had a trial of Mythos and trying to run it to find out whether there's any bugs or problems with the software, including Gentrack software?

Our customers have not, that I'm aware of. I think that I would be aware, but I don't want to just blanket statement it definitively.

The answer is no.

Great. Thanks.

Yep.

Thanks, guys. Just pushing back to the pipeline discussion.

I know it's a qualified pipeline. I know there's movements in and out, but there must be a base case to get three to four over the next 12 months.

Can you maybe just talk about, on a risk-weighted basis, what the three to four would translate to in terms of meter points? Can you give us a broad range?

The tricky thing about talking about a pipeline in a such a public environment is it's a really competitive aspect of our business. That seems to get repeated and sent around and used in all kinds of ways possible.

It's just pretty difficult to try to go into more details. We're trying to provide some quantitative information for our investors, but we just need to be careful about how we yield that out.

Can we use a broad-based average then?

No, I think when we sort of target three to four deals, we would like to target that to be a sort of proportionate section of total aggregate, if that makes sense. Clearly, only if we won the largest and the most revenue-generating deals out of that, it'd probably be a little bit above that, and you could get something a bit below that, but I would take it as proportionate.

Also I think if you look at it, Owen, the scale of the numbers, 30 million is a big number.

There's obviously

some big suppliers in there. We've said pretty regularly that we support tier ones today at scale, and that we are targeting winning tier ones, that's an important also transition for us.

I think Veovo's done a really good job moving from the lower tiers into really being a tier-one, tier-two player. That's exactly what this 30 million represents for the utility business also.

Cool. Just given where the pipeline sits now and the expectations and timing, are you guys right-sized in terms of headcounts?

Do you expect some further moderation or cuz just following on from the question beforehand, headcount appeared to increase in the second half costs?

Thanks, Owen. Look, I think we've got to tread a careful balance here.

To be able to progress on deals that are in play, we need to have the capability, to be able to demonstrate we've got that capability to the utilities that we can deliver on that. Clearly, we have maybe sort of reduced the level a little bit since the first half, but we need to maintain that, I guess, a strong delivery capability to be able to capitalize on the deals in the pipeline.

It's a little bit of a chicken and egg. It becomes harder to win the deals without the capability behind and the resource behind to actually deliver on it.

We're careful, but we haven't launched a sort of huge sort of AI-linked retrenchment program, or a large sort of scale reduction program. I think that would be short-sighted in terms of trying to grow the business.

Last one for me, just around Factor. Done there.

Just understand, what's its revenue model? How do you charge customers, one?

Two, what's required to hit their earn-out target or their revenue targets there, and how much do you expect to generate that from your existing customer base?

Look, Owen, thanks for that. We're definitely not breaking that out.

We built our model to be able to cross-sell and upsell this into our base. The majority of it will also, quite frankly, be new insertion points and new sales for G2.

We really see this as a growth vector, particularly for the insertion point side. It's a high-ARR-related business.

There's really almost no set-up cost. This is something that people can spin up, trial for 60 days, purchase it.

It's pretty slick insertion point type of technology. They also have relations with AWS and Salesforce and the likes of those players that need pricing engine inside their own configure, price, and quote offerings that they're providing, at least Salesforce is providing to its customers.

This is something that we plan to leverage up. We'll provide more details as that rolls out over the next year to two years.

Thanks, guys.

Yeah.

Morning, guys. Thanks for taking my question.

Just a couple of questions from me. If I think about the fiscal '27, and appreciate there is no quantitative guidance at this point, but if I look at the qualitative comments, you're still expecting a strong growth in fiscal '27, which is similar to what you said back in November, December.

This is despite your pipeline has shifted by a few months, 6 months you call out. How should I be thinking about those two things?

Does it imply the pipeline or the conversion of customers is more eminent in the near term for you to be able to maintain that qualitative guidance comments for '27?

Maybe one way to think about it is that, in our guidance statement, I sort of say we're not providing guidance for FY 27. Then we go on and talk about our medium-term guidance and our medium-term target.

I think we're just trying to draw a distinction between FY 27 and our medium-term targets because at this time, I think it's just too early to sort of guide that we can cover that in the next financial year. Yes, we've got lots of great opportunities and drivers for growth.

You've got Veovo, we've got a strong pipeline, we've got full-year impact of DTP acquisition. There's a range of things out there that help support us.

I think it's just too early to be more definitive than that at this point.

Sure. How should I be thinking about strong growth?

Is it fair to say by strong, you mean double-digit growth?

Look, I think we want to just be very careful what we set up as an expectation for FY 27 at this point. Again, I think, maybe just think through those different building blocks in turn, but you can sort of see the range of outcomes that make some sense there.

Sure. Just staying on '27, and I'm looking at the utilities operating cost in first half, that's gone up.

You've given the reasons why it has. It looks like your second half cost is a guide in terms of the first half.

You're holding the cost base, would it be fair to say your fiscal '27 operating cost be slower than the revenue growth, as well be more like a flat kind of outcome?

Yeah. A lot of that depends if the revenue actually grew in FY 27.

Look, I can sort of see where you're sort of heading on to that. One way to think about it is that we've held too much capacity in the first half.

We could have delivered more revenue. You see some of the benefit of that in FY 26, as I sort of state in this deck.

I think there is some sense to that then would move forward into FY 27 in terms of the wider capability that we have to deliver on revenue. I think the only thing that we would then have to think about as we near the end of this financial year is what other investments we're going to make in terms of driving growth beyond FY 27 still.

Sure. Couple of questions on Factor, but just still trying to understand, a, what's the integration timeline for this into your business?

Can you start upselling from day one? Secondly, are you able to provide the Factor revenues and EBITDA in the last 12 months?

We're not disclosing their financials. In terms of the integration, we will be integrated with them within a matter of weeks.

We've already sent some notes to our customers about the news and that we want to get the technology in front of them. That's started already this morning.

Sure. Then if I look at the ARR, you've got $217 million ARR related to the earn-out of $10 mil.

Can you provide a bit more kind of color around the potential earn-out of $10 in terms of the ARR of 217? Is that all driven by the Factor team, or you'd be growing the ARR as well over the next 3 years?

How should I be thinking that?

Oh, it's driven by sales of Factor. You can see the third part of any sales that relate to Factor, sometimes it could be standalone, it purely the Factor product.

I can say it's all hands on the pump. Everybody in Gentrack's salesperson, and we're all selling Factor, and they're also selling G2.

We're all pushing to get and exceed as much as possible any targets we've got.

Is that 217 number, is that for fiscal '29 or fiscal '28? Can you clarify that for me?

It's for the $17 number we talked about, it's for three it's 3 years following transaction. I think that's what we sort of talk about.

Again, that's a target for the earn-out. Look, I think we've probably got time for one other question or so from the phone lines, if that's everything from yourself?

I'll leave it there. Thanks.

Thank you. There— Sorry, Paulie.

We've finished all the questions on the phone. We've probably got time for one or two questions from those submitted online.

Our first one from James Lindsay, asking, "The combined consideration of the two acquisitions is circa NZD 41 million before earn-outs, and you have also announced the buyback of up to NZD 20 million. This will be most of the cash balance without the second half '26 cash flow.

Should we expect M&A activity to be put on pause, or is it more likely that the buyback would be paused?" Look, I think the priority for us is growth.

That's whole. It's not the best time to go out and use equity to buy something, we prefer to use cash.

The priority is definitely growth, and that would lead towards M&A. We said we'd come back on the buyback in due course, and we will do that.

Probably our last question for the call from Rob Shemgar: "Can you mention some of the key competitors to Factor, and does Kraken offer the same features?" The main use case for pricing is mostly on the B2B side of energy.

It's not only on B2B, it can be used for broad B2C portfolios and things like that. We are obviously very strong there.

I think Kraken has some ambitions in that space. I don't want to comment on their stack itself, I'm not going to.

There are other competitors out there. We generally don't like to call out competitors on calls like this.

By the way, some retailers have their own pricing, but as you move to smart meters and things like that and hyperscale data, there is a very, very kind of growing trend to license this technology from the professionals that build it once. We ran a pretty good funnel and decided on Factor for a number of reasons, and I think it's really good fit for us and for our customers.

All right. Thank you, everybody on the call.

That concludes the time we've got for this morning, and I think we've answered most questions between the phones and online. We look forward to seeing a number of you over the coming weeks.

Thank you all.