Latest news with #SwiftBridge
Mercury
a day ago
- Business
- Mercury
Straker adds n8n to growing list of AI platform integrations
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Straker has launched an integration with AI workflow platform n8n The company delivered record adjusted EBITDA of $4.8 million in FY25 Ord Minnett has upgraded Straker's price target to 52c Special Report: ASX-listed language tech company Straker has extended its reach into the fast-growing enterprise automation market, announcing a new integration with AI workflow platform n8n. This comes just days after Straker (ASX:STG)reported record profitability and winning a price target upgrade from broker Ord Minnett. The integration introduces Straker's Verify product – its AI-powered translation quality and compliance tool – into n8n's ecosystem, giving over 230,000 active users and 3,000 enterprise clients the ability to automate translations, receive real-time quality scores, and seamlessly escalate content to human linguists when needed. The partnership forms part of Straker's broader platform strategy, which has already seen the company integrate its services into workplace staples like Slack, with plans underway to launch in Microsoft Teams. 'As organisations race to adopt generative AI workflows, translation accuracy and oversight cannot become casualties of speed,' said co-founder and CEO Grant Straker. 'This integration with n8n ensures businesses can move fast without compromising on the quality their global audiences demand. It is yet another example of Straker's strategy of leveraging third-party platforms to cost-effectively broaden the reach of our sales efforts and grow Straker's high-margin recurring revenue.' The new capability is particularly relevant to highly regulated sectors such as financial services, healthcare, and legal, where accuracy and compliance are non-negotiable. Users can deploy Verify to automatically trigger translations, evaluate content quality in real time, and apply human oversight only where needed offering both scale and assurance. Record results, stronger margins The announcement comes off the back of Straker's FY25 financial results, which saw the Auckland-based firm deliver revenue of NZ$44.9 million – at the top end of guidance – and adjusted EBITDA of NZ$4.8 million, a company record. Gross margins rose more than 300 basis points to 67 per cent, reflecting a strategic pivot toward AI-enabled, recurring revenue streams and away from lower-margin, legacy translation work. Ord Minnett responded by lifting its 12-month price target for Straker by 42%to A$0.52 per share, citing stronger-than-expected execution and rising profitability. The broker noted that the company's adjusted EBITDA came in 141% above its forecast and described the platform strategy as a 'margin-accretive opportunity'. 'The earnings uplift and expanding contribution from newer offerings such as SwiftBridge and Verify position the company well heading into FY26,' the note said. The company's SwiftBridge product, developed in partnership with IBM, recently launched in Japan to support new Tokyo Stock Exchange disclosure requirements. Meanwhile, Verify – now accessible via n8n – delivered more than NZ$1 million in new revenue in its first year. Straker ended FY25 with NZ$12.9 million in cash and no debt. The company reduced headcount by 15 per cent across the year, including a 32 per cent cut in its Production segment, contributing to sustained operating leverage as it scales its software-led offerings. While no formal FY26 guidance has been issued, management expects margin expansion and further growth in recurring revenue lines to continue. This article was developed in collaboration with Straker, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Language tech specialist Straker adds n8n AI platform integration
Mercury
28-05-2025
- Business
- Mercury
Ord Minnett lifts Straker price target
Ord Minnett has upgraded Straker's price target to 52c Straker delivered record adjusted EBITDA of $4.8 million in FY25 The company has accelerated its shift to AI-powered, recurring revenue streams Special Report: Ord Minnett has lifted its 12-month price target for Straker by 42% to 52 cents per share following a better-than-expected FY25 result that saw the AI translation tech company deliver record margins and its strongest ever adjusted EBITDA. Maintaining a hold rating, the broker acknowledged Straker (ASX:STG) strong execution in pivoting away from traditional language services and into AI-led, margin-rich offerings such as SwiftBridge and AI Verify. The result, Ord Minnett noted, came in ahead of expectations across nearly every key metric. Revenue of $44.9 million landed at the top end of guidance and slightly ahead of the broker's forecast, while gross margins surged to 67%, well above the expected 63.8%. Adjusted EBITDA of $4.8 million – the highest in the company's history – came in 141% above expectations. 'The FY25 result exceeded our forecasts on revenue, margins and profitability,' the broker said in a note to clients. 'Execution risks remain, particularly with the upcoming expiry of the IBM contract, but the early traction from Straker's AI offerings positions the company well heading into FY26. FY25 marked a turning point for Straker as it pushed deeper into AI-powered SaaS and enterprise translation tools. While overall revenue was down year-on-year due to a $9.6 million drop in legacy Language Services, that shortfall was partially offset by a $4.7 million gain in Managed Services, which more than doubled. Recurring revenue also strengthened, with subscriptions holding firm and a notable debut from AI Verify, which generated $1.1 million in its first year. The launch of SwiftBridge AI in Japan – developed with IBM and now being sold in partnership with IGUAZU Corporation to meet new Tokyo Stock Exchange regulations is expected to add further upside to Straker's emerging SaaS business. Legacy services now account for just 68% of revenue, down from 81% the year prior, with the company forecasting that trend to continue as high-margin offerings scale. Straker ended the year with $12.9 million in cash and no debt, equivalent to 20c per share. Cost control was a major theme, with operating expenses down 17% and headcount reduced by 15%, including a 32% reduction in the production department. Ord Minnett has lifted its revenue, margin, and EBITDA forecasts through FY28. The broker now expects adjusted EBITDA to more than double between FY26 and FY28, citing improved margin assumptions and fixed-cost leverage. This article was developed in collaboration with Straker, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Ord Minnett upgrades Straker as FY25 result beats expectations
